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Choosing Credit Cards For Business

a man at his computer using a credit card for business use
Posted in Credit Card

Using a credit card for business use can be an ideal way to keep track of purchases and get rewards while you spend. Beyond this, though, there are numerous benefits to having a business credit card. These include simplifying your employee’s expenses, taking advantage of purchase protections, and getting access to tools that help you manage your finances.

Before you decide what credit card company you trust with your finances, you’ll want to consider a few factors and weigh your options. Check out our guide to choosing the best credit card for business use.

But first, how do business credit cards work?

Business credit cards work very much in the same way as a standard credit card. You apply for a card, get a set credit limit, and can charge purchases to your card. As long as you pay your bill in full by the due date, you’re good to go. Otherwise, you’ll owe interest according to the card’s APR. You can usually issue several cards to your employees so that they have access to your account and can put charges on the business’s credit.

Credit cards for business use make managing finances quite straightforward. But it is important to set up a system to ensure all purchases are approved as well as establish spending limits. Different credit card companies offer different systems to do this, so keep in mind the system you might want in place while you are looking for options.

1. Consider your business’s expenses

One major factor that should go into your decision is what kind of rewards you want to be earning. If you or your employees do a lot of traveling, you will probably want to consider a travel rewards card. If your business requires you or your employees to drive, a credit card that gives you extra rewards on gas may be a good option.

If most of your purchases are general expenses, with no particular thing topping the ranks, a general cashback on everything card can give you money back on all purchases.

2. Make a plan for managing your account

First, you’ll want to think about how many employees need cards. Is it just you? Or will multiple people have access to the account? Will you want to set spending limits? Many businesses have their employees submit requests for purchases before using the company card. In this case, you’ll want a way to monitor your account to make sure all purchases are accounted for.

You’ll want to check if the cards you are considering have options for the plan you have in mind.

For example, Baton Rouge Telco’s Visa cards have 24/7 online access to your accounts – this ensures that you can always monitor where your business’s expenses are coming from.

3. Check out the other perks

You’ll want to consider what kind of perks (in addition to rewards) are available with a particular card.

Some cards offer purchase protection, others have perks on APR for a period of time. 

Baton Rouge Telco’s Visa cards offer Apple Pay and instant issue credit cards. Having access to instant issue cards printed the same day can be a lifesaver if something happens to your credit card, or if a new employee joins your company and needs a card.  

4. Evaluate the credit card company

Trustworthiness, guarantees, and customer service are three examples of company characteristics that can make or break your experience as a consumer. 

For example, going with a small credit card company might mean that you’ll get faster, more straightforward service.

However, nowadays, most places only accept a few major credit cards. Visa and Mastercard are the two predominant ones. American Express and Discover are also commonly used, yet many small businesses do not accept these company’s cards. If you’ll be shopping at a lot of local, small retailers, Visa or Mastercard may be the best bet.

5. Bank vs. credit union vs. other

When deciding where to get a credit card, you’ll want to consider where you’re getting the card as well as the actual credit card provider.

There are lots of places you can look for and apply for cards. Two of the most common ways to get a credit card are through your bank or credit union. Being a member of a bank or credit union usually makes it easier to get approved for whatever card you apply for. 

As a member of a credit union, you also get other perks like low APR and great customer service. Because credit unions are not-for-profit and owned by their members, they can offer low, competitive APR that you may not be able to get anywhere else.

You can learn more about the Visa cards that Baton Rouge Telco offers, the APR, and the perks and rewards that come with each one by clicking the link below.

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