Should you get a small business credit card in 2023?

A woman on the phone with a credit card.

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Every business owner should have one.

key point

  • Small business credit cards allow you to separate business and personal expenses.
  • Using one can also improve your business credit score.
  • Most business credit cards offer money-saving benefits, such as rewards and purchase protection.

When you start a business, your financial situation becomes more complicated. It’s no longer just about your personal finances, it’s also about the financial considerations of your business, including its costs and how you’ll pay them.

Many banks offer small business credit cards designed for business owners. Whether you’ve been in business for many years or are just starting out, this type of credit card is extremely valuable. If you don’t already have one, or you’re not happy with your existing business card, it’s well worth applying for a new one in 2023.

Why you should get a small business credit card

While there are many ways you can benefit from a business credit card, let’s start with the most important. Small business credit cards separate your business and personal expenses.

You can now pay for business expenses with a regular credit card. There is no law prohibiting it, but you will be mixing all the costs together. This creates more work for you at tax time, and you need to find the business expenses you’re writing off. It may also take longer to review your business’ spending over a specific time period, such as a specific quarter.

With a business credit card, you won’t have these problems. If you’re only using it for business expenses, all those expenses will be in one place. You don’t need to dig through personal expenses to find them. Most of the best business credit cards also offer useful accounting tools that can help you stay on top of your business’ financial health. For example, you can get monthly, quarterly, or annual expense reports.

Another reason it’s smart to have a business card is Build your business credit score. By using business cards regularly and paying on time, you can build your business credit just like you build your personal credit score. A good business credit score can make a big difference if your business needs a loan or line of credit in the future.

More Benefits of Business Credit Cards

Business credit cards can offer a lot of features that help business owners save money. Here are some of the most valuable perks a business card has to offer:

  • Credit card rewards you earn on purchases, usually cash back or travel credits
  • Sign-up bonus, an introductory offer available to new cardholders
  • 0% Introductory APR on purchases, allowing you to pay off your purchases interest-free over a period of time
  • Purchase Protection covers eligible items from damage or theft
  • Spend credits that help cover the cost of certain types of purchases
  • You can manage free employee cards with spending control

The exact benefit depends on the card, so if you’re looking for something specific, try narrowing it down to a specific type of business card first. For example, if your business requires you to travel all the time, a business credit card for travel is a natural fit. If you’re interested in getting some money back from your spending, check out a cash-back business credit card.

If you already have a business credit card

For those who already have a business credit card, getting a new one in 2023 isn’t a must. However, it’s still a good idea to check out current business card deals and see if any can help your business.

Maybe you have some big expenses to finance in 2023, so you decide to look at a card with a 0% APR. Alternatively, you can find a card that earns more rewards in categories where your business spends higher.even if your business does not need A new credit card with lots of great cash back rewards for new cardholders. This is the closest thing to easy money if you get a new card and meet the bonus requirements.

Expert picks for business credit cards with great rewards

Cash back, travel rewards, 0% introductory APR financing: all of these are great credit card perks for business owners. But how do you find the right business credit card for you? There are tons of offers on the market today, and sifting through them to find the right one can be a hassle. So we’ve done the hard work for you.

Get started today with one of our picks for 2022 business credit cards.

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