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3 Rewards of Business Credit Cards
Blog / Marketing / May 30, 2024 / Posted by Melanie Musson / 22

3 Rewards of Business Credit Cards

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Is it time for your small business to get a credit card? It might be. Choosing the best card for your purposes is critical.

Different business credit cards have different benefits designed to complement various business needs. Some of the most common benefits are travel insurance, cash back or rewards for certain purchases, and introductory offers.

#1. Travel Benefits of Business Credit Cards

Travel is a part of many small businesses’ operations. Whether traveling to conferences for educational purposes or to introduce or represent products, you very well may find yourself on the road.

Since credit card companies understand this aspect of business, they usually offer travel benefits. One of those is roadside assistance. You could purchase a roadside assistance policy independently, but you’ll save money when your credit card provides that service.

Another popular benefit is travel insurance. Usually, the type of coverage provided is trip cancellation and interruption coverage. So, your business can be compensated if you’ve paid for your trip, but then your host cancels the event, or the airline cancels your flight.

#2. Cashback and Rewards of Business Credit Cards

There are several free options for business credit cards. These are excellent for businesses with minimal budgets that won’t use the card frequently. You’ll get 1% rewards or more from many providers.

If you pay an annual fee for a card, you can earn far higher rewards. So, if your business is putting thousands of dollars on the card every month, it may be worth paying for a premium card because the rewards will more than cover the fee.

When you operate your business on a budget, you’ll be able to decide which type of card is best.

#3. Introductory Rewards for Businesses

The introductory rewards are among the most appealing things about getting a new business credit card. Some offer 0% APR for the first 12 months. Others offer cash back when you spend a minimum amount within the first three to six months. These offers can be as high as $1,000 back when you spend $10,000.

When you choose a business credit card, make sure you’re considering the cost and benefits. You should also break down the long-term benefits and the introductory offers. Ideally, you’ll keep your business credit card for many years, so you want to consider how you’ll benefit from it for more than just the first year.

Eligibility for Business Credit Cards

Since a business credit card is for your business, your business must build a credit report. The best rewards cards require good to excellent credit. So, make sure that you’re building and improving your credit so your company can qualify for the best cards.

Your business card will work similarly to a personal credit card. There will be a limit and monthly payments. Interest is high on unpaid balances, so before you spend, make sure you can pay off the card each month. That way you’ll enjoy the rewards of the card without paying the high price of interest.

You’ll have to be as careful with your business as you are in your personal life. As long as you stay on top of your finances in your company, a credit card can provide excellent rewards.

About Author

Melanie Musson, a published insurance expert, is the fourth generation in her family to work in the insurance industry. Over the past two decades, she has gained in-depth knowledge of state-specific insurance laws and how insurance fits into every person’s life, from budgets to coverage levels. She specializes in autonomous technology, real estate, home security, consumer analyses, investing, digital security, and business finance.

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