How to choose a business credit card? Key things to look for

Knowing where your money goes each month will help you choose the right business credit card. Most companies develop predictable spending patterns, whether that's regular purchases of supplies, recurring software subscriptions, or periodic travel expenses. Start by reviewing your business expenses from the past few months. Look for categories where you spend consistently, such as Google Ads, cloud communications, travel, or client entertainment. Pay attention to the types of expenses and their amounts. A business that spends heavily on travel may require different card features than one focused primarily on inventory purchases or online advertising.

Monthly spending totals matter as much as spending categories. Calculate your average monthly business expenses across all categories. This figure helps determine the minimum credit limit you'll need and whether you can hit the spending requirements for signup bonuses. It also reveals whether you'll spend enough to make annual fee cards worth the potential rewards earnings. Consider also how your spending might change as your business grows. While current expenses provide a baseline, thinking ahead prevents the need to switch cards later.

If you anticipate hiring employees who will need their own cards, or if you expect to expand into new markets requiring more travel or currencies, factor these possibilities into your decision. The goal is to find a card that serves your business both today and as it evolves. Some businesses find it helpful to project spending six months to a year ahead, accounting for seasonal variations and planned growth initiatives.

The real cost of a business credit card extends well beyond the annual fee. Interest rates, expressed as Annual Percentage Rates (APR), form the foundation of card costs, particularly if you ever carry a balance. Even businesses that typically pay in full might occasionally need to carry a balance during slower periods or when managing large purchases. Current business card APRs range widely, and even a few percentage points difference can translate to hundreds or thousands in interest charges over time.

Annual fees

Annual fees tell only part of the story. While no annual fee business credit cards seem attractive, they might cost more through higher interest rates or fewer benefits. Cards charging $95 to $595 annually often offset these fees through increased rewards, but only if your spending patterns align with bonus categories. The math requires careful consideration of your expected annual spending and reward redemption values.

Transaction fees

Transaction fees add another cost layer that you might not notice until you get your first statement. Foreign transaction fees typically run 2%-3% of each purchase made abroad or in another currency. For a business spending $10,000 annually on international purchases, this is an additional $200-$300. Further, cash advance fees can reach 5% of the amount withdrawn plus immediate interest charges starting from the transaction date, making them an expensive form of financing.

Late payment fees

Late payment fees deserve particular attention because they cascade into other costs. Late payments carry an average fee of $25-$40, but the real damage comes from penalty APRs that can spike your interest rate from 18% to 29.99% for months or even permanently. Some issuers also report late payments to credit bureaus after 30 days, potentially damaging your business credit score and affecting future financing options.

Balance transfer fees

Balance transfer fees represent another hidden cost when consolidating business debt. Most issuers charge 3%-5% of the transferred amount upfront. While promotional 0% APR periods on transfers can provide breathing room for debt repayment, calculate whether the interest savings exceed the transfer fee. A $10,000 transfer at 3% costs $300 immediately, which might not make sense if you can pay off the balance quickly.

Rewards programs attract many business owners to specific cards, but their actual value depends entirely on alignment with your spending patterns. Cash back programs offer the most straightforward value proposition. You receive a percentage of spending back as a statement credit or deposit, typically ranging from 1%-5% depending on the category. Travel rewards provide points or miles redeemable for flights and hotels, while some cards offer flexible points usable across multiple redemption options.

The key to maximizing rewards lies in an honest assessment of your actual spending, not optimistic projections. Even the best business credit cards for rewards provide minimal value if they don't align with your spending patterns. A card offering triple points on travel provides minimal value if travel represents only 5% of your expenses. Similarly, category bonuses that change quarterly require attention and planning that many business owners just don’t have time to provide. Fixed-rate cash back cards, while potentially offering lower peak returns, often provide more consistent value for businesses with diverse spending patterns.

Signup bonuses can provide an immediate benefit, often worth $500-$1,500 in cash back or travel redemptions. However, these bonuses typically require you to spend $3,000-$15,000 within three months. Before choosing a card based primarily on its bonus, ensure your normal business spending will meet the requirement. Forcing unnecessary purchases to hit spending thresholds negates the bonus value and can harm your business finances.

Consider redemption flexibility and restrictions carefully. Some programs require minimum redemption amounts or limit redemption options. Points might expire after 12-24 months of account inactivity, while others maintain value indefinitely. Certain travel programs restrict award availability or add fuel surcharges that diminish redemption value. The most valuable rewards program combines strong earning rates with easy, flexible redemption options that match how you'll actually use the rewards.

Credit limits directly impact operational flexibility and financial management options. The right limit provides adequate purchasing power for normal operations, plus a cushion for unexpected expenses or opportunities.

Match the limit to your expenditures

Look for a card that offers a credit limit high enough to cover your typical monthly expenses. If your business spends $5,000 a month on supplies and travel, a card with only a $3,000 limit will be inconvenient to pay off multiple times a month. While high limit business credit cards can solve this problem, you don't want an excessively high limit if you don't need it, as some issuers might require personal guarantees for high credit lines.

Your credit utilization ratio also impacts your business credit score. Financial experts recommend keeping utilization below 30%, meaning a business spending $10,000 monthly needs at least a $33,000 credit limit for optimal credit building. This mathematical relationship between spending and limits often surprises business owners who focus only on having “enough” credit for purchases without considering credit score implications.

Growth and flexibility

If you plan to grow your business, consider how a credit card can grow with you. Some cards or issuers will periodically review and increase your credit limit as your business financials improve. It's worth researching or asking how easy it is to request a higher limit when you need one. Ideally, you want a card that can adapt to your needs. For instance, if you land a big project and your expenses double, you should be able to get a limit increase relatively easily.

No preset spending limits

Some corporate cards (typically business charge cards) offer no preset spending limit, which means your purchasing power can adjust based on your spending patterns and payments. These can be useful for businesses with fluctuating expenses or seasonal spikes. Just be sure you know how corporate cards work (often, you must pay the balance in full each month) and whether that fits your cash flow model.

Emergency flexibility

Also consider how the card handles emergency or one-off large purchases. Will you be able to go over your limit in a pinch (perhaps with a fee) or make a big purchase if you inform the issuer in advance? Such flexibility can be a lifesaver for unexpected expenses.

Security features have changed from simple fraud alerts to sophisticated tools protecting against more modern threats. Top business credit cards employ artificial intelligence to analyze spending patterns, flag anomalies, and prevent fraud. The best implementations learn your business's unique patterns, reducing false positives while catching actual fraud. However, implementation quality varies significantly between issuers, with some generating so many false alerts that legitimate transactions get regularly declined.

Employee credit card controls provide essential protection for businesses with multiple card users. Advanced features let you set individual spending limits, restrict merchant categories, block certain transaction types, or require pre-approval for purchases above specified amounts. Real-time notifications for every transaction add another security layer, allowing immediate response to unauthorized charges.

Digital security features address online fraud risks that particularly affect high-volume spenders. Virtual business credit card numbers for online purchases prevent exposing your actual card number to potentially compromised merchants. Two-factor authentication for account access blocks unauthorized users even if they obtain your password. Some issuers provide specialized services like assisted recovery from data breaches or identity theft affecting your business. Evaluate these features based on your online transaction volume and data sensitivity.

When it comes to financial tools, the quality of customer service can make a huge difference. As a business owner, you want to know that if something goes wrong or if you have a question, help is readily available.

24/7 customer support

Opt for a credit card provider that offers 24/7 support via a convenient channel (phone, online chat, or both). Issues with your card can pop up outside of regular business hours. Imagine a declined card while traveling for work on a weekend. Round-the-clock support becomes essential in these situations.

Ease of accessing help

Do you prefer to speak to a real person to help you resolve an issue? Quick-response customer support, preferably with a dedicated business support line, can save you time and stress. Some premium business cards even assign you a dedicated account manager or concierge who knows your account history and can provide personalized assistance.

Dispute resolution

Read up on reviews or testimonials about the card issuer's dispute resolution process. If a fraudulent charge appears or if there's a billing error, you need an issuer that handles disputes promptly and in your favor. A good issuer will investigate and remove unauthorized charges quickly and not make you liable during the investigation. The speed and fairness of dispute resolution can significantly impact your business operations.

Learn from other business owners

It can be helpful to see what others say about the card's customer service. Browse online forums or business communities for feedback. If many users report trouble getting help or resolving issues with a particular issuer, consider that a red flag. Conversely, if an issuer is known for going above and beyond to help customers (for example, overnighting a replacement card if yours is lost), that's a big plus for your peace of mind.

In short, remember that a credit card is not just about numbers. It's also about the relationship with the provider. Great customer support means any problems you encounter will be much easier to fix, allowing you to focus on running your business.

Credit card agreements contain critical details that marketing materials conveniently omit. These lengthy documents specify exactly how promotional rates end, when terms can change, and what actions trigger penalties. While the legal language feels overwhelming, learning key sections prevents expensive surprises and helps you use the card strategically.

Focus particularly on sections describing APR changes and triggers. Many attractive introductory rates last only 6-12 months before jumping to standard rates, which might be double or triple the promotional rate. Some agreements permit rate increases based on late payments to any creditor, not just their card. Others include universal default clauses that monitor your overall credit behavior. Knowing these triggers helps you protect your favorable rates.

Grace period specifications reveal another layer of complexity. While most cards advertise interest-free periods on purchases, these benefits often disappear if you carry any balance. Some cards calculate interest from transaction dates rather than statement dates, effectively eliminating grace periods for all purchases when you carry a balance. The agreement also details how rewards programs can change, often giving issuers broad discretion to modify earning rates or redemption values with minimal notice.

Choosing a business credit card requires weighing multiple factors against your specific situation and priorities. Start by identifying your non-negotiable needs. If international suppliers represent a major expense category, avoiding foreign transaction fees becomes essential. For businesses that occasionally carry balances, low interest rates outweigh rewards programs. Companies with multiple employees might prioritize spending controls and expense management features.

To make an informed decision, create a practical comparison framework focusing on total value rather than individual features. Calculate the annual value of rewards based on your actual spending patterns, then subtract annual fees and estimated interest costs. The basic math can help you understand which cards provide genuine value versus those relying on marketing appeal. You may want to factor in less tangible benefits like customer service quality, which becomes critical when problems arise.

You might also consider a portfolio approach as your business grows. Many successful companies use multiple cards strategically. A high-rewards card serves major purchases, a no-foreign-transaction-fee card handles international spending, and employee cards with strict controls manage team expenses. This strategy maximizes benefits while maintaining organization, though it requires more sophisticated financial management tools.

Your business will change, and your credit card needs will change accordingly. What works for a solo consultant differs dramatically from what serves a growing company with employees and global vendor relationships. Review your credit card choice annually, comparing your current solution against new options and your changing needs.

While many traditional cards require extensive paperwork and personal guarantees, modern solutions like Brex offer a different approach designed specifically for growing companies. Brex provides business credit cards with no personal guarantee required, built-in expense management software, higher credit limits based on your cash balance rather than credit history, and rewards tailored to business spending categories like software, travel, and rideshares. The platform integrates directly with accounting software, automates receipt-matching, and gives you real-time visibility into company spending, solving many of the pain points business owners face with traditional credit cards.

Ready to experience how a business credit card should work? Sign up for Brex in minutes and see why thousands of companies have already made the switch.