How do you choose a small business credit card?


Quick Answer

People choosing small business credit cards should shop around, choose cards that offer categorizations of expenses on statements, analyze cards' costs and choose proper rewards programs, states Entrepreneur. A good business credit card should provide time-saving and administrative advantages to business owners.

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Full Answer

A business owner looking for small business credit cards should start with the bank with which he does personal business, as that institution is aware of the applicant's credit history, notes Entrepreneur. He should also shop around at websites such as Bankrate.com and Credit.com to compare the costs and features of various cards. Good small business credit cards offer various categories for purchases on their statements, making it easier for business owners to track expenses and file taxes.

People choosing small business credit cards should examine annual fees and interest rates to determine which cards best fit their needs, states Entrepreneur. There are very few credit cards with no annual fees, so business owners should choose cards for which the annual fees and interest rates are balanced by the benefits. Business owners should also decide which types of rewards programs attached to credit cards are the best fit. A business that engages in a lot of travel might benefit from a rewards program with airline miles, while a business with high spending levels may benefit from a cash back program.

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