How to pick the best rewards card for your business
Ask a question.
The content on this page is accurate as of the posting date. Some of the offers mentioned below may no longer be available. Please review our list of best credit cards to find our current offers, or use our CardMatch tool to find cards matched to your needs.
Dear Your Business Credit,
I'm shopping around for a business credit card for a new business. How can I find out which cards offer the best deals? -- James
It's smart to shop around, because the rewards on business cards do vary a lot. There are a number of online resources for comparing rewards business cards, including our business credit card list, which will give you an idea of the types of rewards that some of the major cards offer. You can do a side-by-side comparison of the cards' rewards, annual fees and APRs.
While the extra goodies you get from rewards cards can be enticing, step back and consider how much a card will cost you to use before you apply. In some cases, cards offering rewards may be more expensive to use than similar cards that don't offer them. Ideally, your card will offer you rewards that, when all is said and done, lower your overhead, whether by helping you to save the cost of a plane ticket or by covering holiday gifts for clients.
Will the rewards you earn be valuable enough to you to justify the costs? As a guideline, the points generated by programs that award 1 point per dollar are usually considered to be worth about a penny each. If you find a card that awards 2 points per dollar, the value doubles.
But you also have to consider cards' fees and the suitability of their rewards for your purposes. You're starting a new business, of course, so it may be hard to anticipate exactly what you'll spend. Drafting a budget will help guide you.
Established business owners should take a look at purchasing records for the past year. That will give you an accurate picture of what you really tend to buy (and not just the purchases that most of us tend to remember, such as plane tickets for a big business trip).
As you'll see from the cards list, rewards programs run the gamut in terms of the goodies they offer. Some cards reward one type of purchase more than others, so think about what types of things you are likely to buy before you commit. For instance, the Bank of America® Business Advantage Cash Rewards Mastercard® will give you 2 percent cash back at restaurants, 3 percent at gas stations and office supply stores and 1 percent cash back on all other purchases. The card might be ideal for a consultant in Los Angeles who will log a lot of miles driving to lunch and dinner meetings with clients.
For someone who has to jump on a plane frequently, seek a rewards program that emphasizes air miles and waives transaction fees like the Capital One Spark Miles for Business card. The company says there are no blackout dates or seat restrictions, and you can fly on any airline.
If you're a solo professional who will be making a lot of trips to Staples or Office Depot, the Chase Ink Business Cash Credit Card might be a good bet. It awards you 5 percent cash back on the first $25,000 you spend at office supply stores and on phone, Internet and cable TV services.
Some small businesses mainly need credit cards for fuel purchases. Gas cards are located at the end of the CreditCards.com list, and as you'll see, the card programs often provide a rebate on fuel purchases, as long as you shop at certain branded gas stations.
Before you choose a gas card, think carefully about where you and your employees do the most driving and what stations they are most likely to use, so you actually get the rebate. Also consider where you all fill up now. If everyone tends to use a local, unbranded gas station near your office, it may be hard to give up that convenience in order to get points.
Bear in mind that rewards cards aren't an option for every business owner. Most rewards cards require excellent credit, so if your credit history is spotty, your choices will be limited until you improve your credit score. Typically, business cards require a personal guarantee, so your personal credit history will affect your application.
Once you choose a card, make sure you manage the cash flow at your business carefully and stay current on your bill. Some cards will not award you the points you've racked up if your check arrives late -- unless you elect to buy back those points. Obviously, you'll get more value from your rewards if you don't have to do that.
Meet CreditCards.com's reader Q&A experts
Does a personal finance problem have you worried? Monday through Saturday, CreditCards.com's Q&A experts answer questions from readers. Ask a question, or click on any expert to see their previous answers.
- How to dispute fraudulent charges on a corporate credit card – If fraudulent charges were put on your corporate credit card, don't assume the card's automatically covered by zero liability policies. However, you have options. Here's what to do ...
- Pros, cons of transferring business card balance to a 0-percent personal card – Transferring a balance from a business credit card to a 0-percent personal card can help you save money and give you more protections – just make sure your utilization doesn't spike ...
- I'm selling my business; can I transfer business card debt to new owner? – If you're selling your business, you can transfer the card debt associated with it to the new owner – just make sure to follow a few rules and put the agreement in writing ...