It can be very exciting yet overwhelming when it comes to choosing a business rewards credit card for your company. It is obvious that you will have to make a few important decisions before you actually sign on the dotted line. For example, whether you want a business charge card or a business credit card or whether you are willing to pay an annual fee for specific rewards. Before you make your decision, a lot of things need to be considered.
The best thing about using a business rewards credit card is that you can enjoy a lot of perks with it, especially if you travel often. Some business owners look specifically for travel points, while others that have a lot of outgoing expenses are interested in cash back. So, if you are on the hunt for the best business rewards credit card for your company then take a look at the main points to consider below.
The first important thing that you need to look for in a business rewards credit card is the rate of interest charged of your carry-over balance. The interest rate is obviously an important thing to consider because obviously, you do not want to pay more interest if there is a similar card with a lower rate.
“Some companies are not concerned with interest rates if they pay their balance in full each month. If this is the case, make your choice strictly on the rewards. Sometimes travel points are worth only pennies, so make sure to really look into the details. Often, a good cash back card will return the most value,” says Dana VanDeCar, COO of Optimally Organic.
Most business rewards credit cards comes with an annual fee which you are required to pay every year. Now for the different companies, the amount is different. To put it in other words, there are business credit cards companies that may charge $50 and there are companies that charge hundreds of dollars. Some also have introductory $0 offers, so read the fine print so you are not hit with a large fee on year number two that you were not expecting.
“You need to take everything into consideration. For example, the American Express Platinum Card has a $450 annual fee. You would need to really look into the card’s benefits to determine whether or not that expense is warranted. For some it may, but that is a hefty fee for a charge card,” says Jake Braun of ChopperExchange, a website that assists consumers sell a Harley.
Rewards and Bonuses
The next important thing that you need to look for in a business rewards credit card is the rewards and bonuses that you can benefit from. If a company is offering an attractive offer then it is worth looking into. Check all your options first, and make sure to look for offers that match your needs.
“If you travel on a specific airline or stay at a particular line of hotels, then look for a rewards card that gives you points to use toward them,” says Darryl Howard of NuWays MD, a company that specializes in coolsculpting in Boca Raton. “A card might have what seems to be great rewards, but they are no good if you can’t use them.”
Don’t just go off the points alone. While 5 points for every dollar spent sounds good, when you look into it the value per point might just be 1 penny. In this case, a rewards card that gives you 2% cash back on all purchases is essentially twice as good.
There are several other perks that you can get from a business rewards credit card. Things like free employee cards, online account services, concierge, etc. are some of the many perks that you can also look for.
“Something like concierge service is something you can take advantage of if you have a lot of employees that travel, freeing up time for your administrator,” says Luqman Khan of Wireloo, a website that just names the best dash cams 2018. Take your time to dive into all of the options available and make you decision based on what is best for your business, not just what looks good on paper.