5 Questions to Ask Yourself When Choosing a Business Credit Card

Brought to you by Spark Business from Capital One

Paying with cash is typically a good decision, but when it comes to business purchases, you may want to explore your options. Here are direct benefits of using a credit card for business-related purchases:

  • A business credit card can help you with separating business expenses from personal expenses. This is a must if you want to better manage your business finances.
  • As the cardholder, you have more control over the spending your employees make via credit card purchases.
  • Earn rewards and enjoy perks, such as Capital One’s Spark Cash that offers unlimited 2% cash back on every purchase on a daily basis or Spark Miles, which offers unlimited 2x miles on every purchase.
  • Build your business’s credit by using your cards responsibly.
  • Business credit cards that offer fraud liability protection will release you from any responsibilities for fraudulent purchases made if your card is lost/stolen.

With so many choices out there, it’s important to choose the right one.

Paying for  a business lunch with a business credit card

Here are 5 of the most common questions you should ask yourself when choosing a business credit card for your small business.

Question #1: What’s your purchasing/spending habit like?

Some business owners and entrepreneurs are using business credit cards as a line of credit, while some others are using the cards for their operational expenses and purchases.

You need to decide what your priority in applying for a business credit card is. If you want an additional line of credit, then you want a business credit card that will offer you low-interest rates. If you want to apply one for managing your operational expenses better – and enjoy rewards, then you should ask yourself question #2 below.

Question #2: Are you making big purchases on a regular basis? Are you traveling frequently?

If you or your employees are traveling a lot, a card that offers miles is the right one for you.

Capital One’s Spark Miles offers you double miles on every purchase, every day, for your business. You will also have the opportunity to earn 30,000 bonus miles. And yes, the miles don’t expire.

If you decide that you are going to make the most of your purchases using a credit card, you should apply for a business card that offers above-average cash back for your purchases. These cards are especially great if you regularly purchase a lot of items and pay everything at the end of your billing cycle. Capital One’s Spark Cash offers an opportunity for you to earn $300 in bonuses, in addition to the 2% cash back that doesn’t expire

Question #3: What are the fees and rates like? Do I really need these rewards?

Rewards are great, but you need to compare business credit card issuers thoroughly, as there are fees associated with great perks. So, make sure that when you opt for a business credit card that offers attractive rewards, you take advantage of the rewards that benefit your business.

Let’s not forget about interest rates! You need to be careful when using the business credit card to finance a startup as interest rates are variable, and it can be very, very expensive if you aren’t careful.

One more thing: Be sure you are aware of the fees charged by your credit card issuers; you can be in for quite a surprise otherwise. So, pay attention to the fees: late fees and annual fees.

Employee credit cards

Question #4: Will your employees use your credit cards?

If so, then it’s only logical to find a product that offers your employee cards. While many business credit card issuers offer this perk, not all offer free employee cards.

Capital One’s Spark Business is one of the issuers that offers this perk. Not only can you receive employee cards at no additional cost, you can also set spending limits individually, and track purchases made by your employees.

Question #5: Do you really, really need it?

Last but not least, here’s the ultimate question you need to answer right now: Do you really need a business credit card?

You could put your business finances into a real mess if you apply for a business card just for the sake of it. You need to have good reasons to apply for one, such as better control over employee spending.


Before you go, here’s one piece of advice for you: Before you decide on a particular business credit card, be sure to do your due diligence. Compare every card you are interested in, and choose the best options for your small business.

More information about Capital One Spark Business℠:

Spark Business℠ Credit Cards from Capital One® offer unlimited rewards on every day purchases, including the opportunity to earn $300 in one-time bonuses with the Spark® Cash card, or 30,000 miles with the Spark® Miles card. Earn unlimited cash rewards or free flights on any airline, anytime with miles that don’t expire and more. For additional information on the Spark Cash and Spark Miles business cards, please visit: http://www.capitalone.com/small-business/.

*This should not be construed as financial planning advice. You should always confer with your accountant or financial consultant before making financial decisions for yourself or your company.

Capital One does not provide, endorse, nor guarantee any third-party product, service, information or recommendation listed above. The third parties listed are not affiliated with Capital One and are solely responsible for their products and services. All trademarks are the property of their respective owners.