How to choose the right business credit card

Business credit cards are used to assist the financial needs of a business. If you’re a business owner, having one can keep both your personal and business expenses separately.

Having a business credit card allows you to build a good credit history for your business. Also, there are numerous perks of being a business credit cardholder. But the key lies in choosing the right business card.

Here are some tips you should consider when choosing the right business card:

Know the basics

Before anything else, make sure you know some basics about business credit cards such as:

  • Business cards have higher credit limits compared to personal credit cards.
  • In most cases, purchases from your business credit card need some personal guarantee. This means you agree to pay your balance with your fund if necessary.
  • Safeguards against rate increase on existing balances or limits on penalty fees are not usually covered in business credit cards. Expenses should be business-related alone and your balance should be paid regularly or on-time to avoid penalties.

These are just the basics. Before making a decision, make sure that you are well informed.

Understand the business credit card types

Banks and credit card issuers offer various types of credit cards for personal use as well as business use. To pick the right one, you must understand the difference between a charge card and a standard business credit card.

Normally, charge cards require full payment in every billing cycle. These cards are similar to standard business credit cards. However, charge cards follow a strict payment guideline.

Business Credit Cards

Standard business credit card is a better option, especially for small businesses. These cards are helpful for bookkeeping and to separate personal expenses to business-related expenses.

Check your credit score

To finish your application for a business credit card account, two credit scores are required; a business credit score and a personal credit score. That’s why it is important to know your personal credit score before applying for a business credit card.

Usually, banks ask for a personal social security number to open a card account. This depends on the account type and the issuer. Once done checking your credit scores, you can proceed to your application.


You can receive cash back, points, and other rewards on your card. However, tiered rates depend on the spending category.

It is also important to check various business cards regarding the rewards and perks offered. There are different types of cards that fit a certain type of business. Make sure that you can use the ones valuable to your business.

Check how rewards are redeemed too. Some cards offer direct deposit to your business or savings account. However, others focus on giving airline tickets and hotel accommodations.

It’s important to get your research done before diving into any decision. Check all the cards, rewards, and requirements before opening an account.

These cards are serious financial tools that can make or break your business. With all the useful benefits, it is a must to be a responsible cardholder.

Watch this space for updates in the Hacks category on Running Wolf’s Rant.


Staff Writer

Running Wolf's Rant's correspondent who chooses to remain anonymous...

Leave a Reply