You know that every purchase counts if you’re a small business owner. That’s why it is crucial to find a credit card that gives you the most rewards for your business spending. Why? Because getting rewards for your business expenditures will save you a lot of money.
Small businesses’ best reward credit cards offer many perks. They include low-interest rates, no annual fees, luxurious travel, cash backs, discounts, etc.
These rewards can give you time to cool down and save you from much pressure and stress. But, you must know which card is fit for you. So if you need help figuring out where to start, read our list of the best reward credit cards for small businesses.
If you need help figuring out where to start, read our list of the best reward credit cards for small businesses!
Table of Contents
What Is Rewards Credit Card?
A rewards credit card is a type of credit card that offers points, cash back, or other rewards for every transaction you make.
You can save money with rewards credit cards on various things, including travel and daily costs. But there are many rewards credit cards, so it’s essential to choose the right one for your needs.
There are a few things you should keep in mind when choosing this card. First, know what type of rewards you need. Do you want cash back, points, or something else?
Second, make sure you understand the card’s rewards program. For example, how do you earn rewards, and what can you redeem them for?
Third, ensure you have a good credit score. That is close to or more than the perfect 850 credit score. This score is vital when it comes to all credit cards.
Finally, compare several cards to find the one that offers the best value.
Types of Reward Credit Cards
Cash back, points and miles are the three main types of reward credit cards. Of course, there are similarities in how each of these works. But it is crucial to know the differences; it will help you choose the best cards that suit you.
Cash Back
Credit cards with cashback provide a simple route to rewards. That is why they are the most popular. A cashback card gives you a cash reward based on your transactions.
Usually, they use a percentage to represent the rate of earning cashback rewards. The percentage rate can be flat, or the card might offer tiers of rewards.
With a flat-rate rewards card, your cashback percentage will never change. When choosing a credit card, look for one that offers at least 1.5 percent cash back on purchases. Some cards even go as high as 2 percent.
Tier rewards can be more profitable. But the cashback varies depending on your sales. So you need a bit of extra effort to get your rewards with these cards. The ideal way to use them is as part of a multi-card plan. It is where you use a card with a higher rewards rate for your greatest spending level—for example, grocery or eating out, and a flat-rate card for everything else.
Point
Another kind of reward credit card offers reward points. For this type of card, you receive a specified amount of points for every cash spent. This type of transaction involved affects the point values. For each buy, certain credit cards offer a set number of points.
Thus others switch up their spending categories every month or every three months. This gives them more points for every cash spent in some categories than others.
Also, depending on your card, you can use points to purchase. You can also transfer points to a reward program. Or you can book trips through your issuer’s travel portal and redeem points for gift cards or other items.
Miles
You can find reward credit cards that allow you to earn miles for travel and those that offer cash back and points. These cards will enable you to gain travel miles. They are either associated with the airline or general rewards cards.
Also, airline cards honor specific patronage. You can spend the money to gain those miles on other deals. But you can only use them to book flights on that particular airline. Depending on which airline you fly the most, you can choose from various cards offered by the same firm.
How to Find the Best Reward Credit Card for Small Businesses
No reward card is right for everyone, no matter how generous it may seem. A lot depends on your particular situation. So before you start applying, it’s worth taking a couple of extra steps.
Check Your Spendings
The best rewards card for you will focus on your regular buying patterns. So it does not pressure you to alter those patterns only to earn rewards. Do you, for instance, spend a lot of money on gasoline, dining out each month, or even investments? If so, the best card for you might offer extra benefits in those categories.
Are you a frequent flier? The ideal option would be a credit card that rewards travel costs. It allows you to use credits towards extra travel.
Also, a co-branded rewards card from that business can make sense if you use a hotel chain or shop for most of your business products.
Check Your Credit Scores
To be eligible for a decent rewards card, you must have a good credit score. That is, to qualify for a rewards card, your credit score must be at least 670.
Also, a secured credit card can be another option for those with weaker credit ratings; some now offer rewards programs.
So, check your credit score before applying for a rewards card. And keep in mind that if you have a short or bad credit history, the cards with better benefits and higher spending limits may need to be in your grasp. Also, making too many credit card applications can lower your score.
Check the APR
Every business credit card has a fee. First, take into account the APR, which accounts for the interest rate and other fees. In addition, many company credit card types have an annual fee.
Other typical fees include late payment or credit limit overuse, advance, and foreign exchange fees.
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Best Reward Credit Card Companies for your Small Business
So after checking and knowing the various types of credit cards, here are some good credit cards you could get for your business.
- Ink Business Cash: This is the best credit card for bonus categories.
- The best credit card for unlimited cash back is Ink Business Unlimited.
- The best for hassle-free cashback is Capital One Spark Cash Plus.
- New calling card! Credit card from Ink Business PremierSM: recommended for sizable general purchases.
- The best business card for luxurious travel is the Business Platinum Card from American Express.
- Business Advantage Customized Cash Rewards from Bank of America The best credit card for cash back options is a Mastercard card.
- Business Advantage Unlimited Cash Rewards from Bank of America Best credit card for Bank of America devotees is the Mastercard.
- The best rewards program for business travel is Capital One Spark, Miles.
- The American Express Blue Business Plus Credit Card is the best for routine business needs.
- The American Express Business Gold Card is the best card for various reward categories.
Bottom Line
When selecting a small business credit card, there are several things to consider. But the best reward credit card for small businesses is the one that offers the most valuable rewards.
Thus get the best reward credit card for small businesses that will offer rewards you can redeem for cash back, gift cards, travel, or other items that are valuable to businesses.