How to Take Advantage of Your Business Credit Card with Rewards

Explanation of Rewards Programs

Many individuals are familiar with personal credit cards with rewards programs but are unaware of the options for business credit cards. The business credit card rewards programs typically work the same as personal credit cards with similar options.

For each dollar spent with the credit card, the cardholder earns a certain number of points. Typically, cardholders will earn 1 point for each $1 but depending on the program and the purchase, they may earn as much as 6 points for each $1. Rewards for business credit cards are also very similar to those available through personal credit cards. Typically, businesses will be able to choose from cash back, travel, merchandise or gift cards.

Why Choose a Business Credit Card

Entrepreneurs and small business owners are often tempted to use their personal credit card for business purchases; especially when their personal card has a rewards program. However, the tracking and bookkeeping involved with separating personal and business expenses can be tricky. Also, these individuals may be missing out on appealing business discounts by utilizing a personal credit card alone. This is because many business credit cards come with discount programs for typical business expenses like rental cars, shipping, printing and office supplies.

How to Take Advantage of Your Business Rewards

It’s important for businesses to keep in mind that not all rewards credit cards are the same. Here are some tips when it comes time for you to shop for your company’s rewards credit card as well as some steps you can take once you have chosen the card that is right for your business.

  • Look for a card that offers an introductory bonus – many cards will provide cardholders with bonus points simply for utilizing their card within the first several months of opening. While these are a one-time bonus, it helps you accrue points from the start so you can experience the benefits of the rewards.

  • Use a card that has bonus categories – as mentioned previously, there are some business rewards credit cards that feature categories that receive bonus points. These may be for gas, restaurant, office supply or even advertising purchases. If you find a card that aligns with your common purchases, then you will be able to accrue points that much quicker.

  • Stick to just one card – many card programs allow businesses to have cards for individual employees that link to the same account. This will allow you to accrue points in one account while still allowing multiple departments to easily make their purchases. You will also have better control over spending because you often can designate various credit limits on a per card basis.

  • Utilize the card for everyday purchases – the more you use your card, the more points you can accrue. If you typically give employees cash to pick up coffee or certain supplies, have them use their company credit card instead. As long as you keep a close eye over spending so that you don’t end up paying interest on Starbucks runs, your company will win through extra rewards.

  • Know the details of your program – make sure to read the fine print of your credit card terms and rewards programs. Many offer unlimited points with no expiration. But there are some programs that cap the amount of bonus points that can be accrued and require their cardholders to redeem their accrued points by a certain date each year.

    These cards work well for many businesses, so if they are a good match for you, don’t let an expiration date deter you from the card. However, you will want to make sure that you are redeeming your rewards by the designated deadline or you’ll be missing out.

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