How to Choose the Right Business Credit Card


Is your small business growing? Are you ready to take on new project goals but don’t have the finances to support them? A growing business is a huge sign of success. But, success can be hindered if you lack the funding you need to take your business to the next step. From a new marketing campaign to hiring a new HR lead, all business decisions require money to back them up.

As a small business owner, the good news is that there are many financing options to consider. One of the top options is a business credit card. There are thousands of credit cards available, so you’ll want to choose wisely. Keep reading for tips to choosing the right business credit card for your company needs.

Be Informed

Before applying or choosing a business credit card, it helps to be informed about the basics. Being an informed applicant will make the selection process much easier.

This one may be obvious but it’s important to note that business credit cards should only be used for business expenses. You never want to make personal purchases using your business card. Business credit cards aren’t protected by the CARD Act. This means you’ll need to be extremely diligent about making monthly payments in full and on time.

Lenders also expect that you make a personal guarantee when applying for a business credit card. This guarantee ensures that you will use personal funds to pay your monthly balance, in the event that your business’ revenue isn’t enough to cover the payment.

With this said, if you’re able to make payments on-time, in full, and are sure you can cover your payments each month, a business credit card is a suitable option. These cards offer a wide range of benefits including:

  • High credit limits
  • Affordable interest rates
  • Rewards and perks that help your company
  • Money savings on hotels, travel, equipment, etc.
  • Ability for employees to use the credit card

This basic information should help you better understand business credit cards. With this, you’ll want to do some in-depth research before choosing the credit card for your company’s financial needs.

Know What You Need

Understanding your company’s financial needs before you start shopping makes finding the right card much easier. Before you begin your search to find the right credit card, make a list of what you want. Factors to consider include:

  • Interest rate/APR
  • Annual fee cost
  • Rewards program

You’ll also need to think about how large of a credit limit you need. You don’t want to run the risk of applying for a $50k credit limit when you know you only need $25k. This can make budgeting monthly payments much harder. Take time to determine your needs from the card you choose as well as financially.

Consider Your Financial Needs

You may need a business credit card to pay for existing expenditures, or maybe you’re looking to take on a new project. The key to choosing the right credit card is to find one that rewards you for the type of purchases you need to make.

Looking to upgrade your company’s IT equipment? If so, you’ll find that there are plenty of business credit cards that offer rewards and cashback on business equipment purchases. Need to make a big purchase that is likely to add up to a few thousand dollars? Find a credit card that offers cash back on larger purchases.

The best business credit cards reward you for your company’s expenses. Before choosing a credit card, learn about the rewards and perks that are offered. You want to get the most bang for your buck!

Know Your Business

Your company’s spending habits are a good indication of the perks you’ll need from the business credit card you choose. But, another factor to think about is how your company conducts business.

Do you find yourself on a plane every week? Are you driving from city to city to meet with clients? Do you prefer to network outside of the office, often taking clients to restaurants to discuss business?

How your company does business will also help to choose the best business credit card. You will find that many credit card companies offer travel and entertainment perks. Some may allow you to redeem rewards for hotels and flights. Others may offer cash back on gas purchases.

Having a well-rounded understanding of how your business operates helps with choosing the most suitable credit card.


Before choosing a credit card for business spending, you’ll want to do a bit of research. Internally you’ll need to know what you need from the card as well as your company’s spending habits. Once you’ve mapped this out, you can then seek out credit card companies that best reward you for your company spending.