Travel can be an important aspect of a business. By using business credit cards, you may be able to save on some of the costs associated with it. Not every travel card is the same, so it's important to understand the differences when looking at options for the best business credit cards for travel for your company.
What are business credit cards?
Business credit cards are cards created to meet the specific needs of businesses. This may include things like tools to make managing finances easier or rewards for business-related purchases.
There are a few reasons why a business might seek out a business card:
- Credit limit: Business credit cards generally have higher credit limits than personal credit cards. This allows a business owner to have more spending power when it comes to growing or maintaining their business.
- Business credit: Like individuals, businesses also have a credit score. Responsibly using a business credit card may help improve or maintain that score. This could open a business up to better financing opportunities in the future.
- Rewards and benefits: Business credit cards may offer businesses certain protections, such as rental car insurance, travel insurance, cell phone protection and more. They may also offer rewards programs for spending, such as travel rewards.
If you're looking for a business credit card with travel rewards, there are a few considerations to help you choose the one that's best for you.
How to choose the best business travel card for you
Business travel doesn't look the same for every business. For some, you may regularly fly cross-country or overseas. For others, you may just be driving to nearby states. Assessing your business' travel habits and needs will likely be key to choosing the best credit card for business travel.
Some factors you may want to take into consideration include:
Spending habits: Look back at your business' travel-related expenses and see where you're spending the most money. Is it flights? Restaurants? Hotels? Using this information, you can choose a card that rewards your spending with the most useful redemption options. Additionally, many business credit cards provide an accelerated earn on purchases in certain categories, such as office supplies.
Interest: Make sure to understand the interest rates for the travel rewards credit card that you're considering. If you end up carrying a balance on the card, you may want to know how much interest you will accrue.
Credit limit: Some cards may offer higher credit limits than others, so you may want to evaluate what an ideal credit limit for your business may look like. This could help narrow down your card options.
Once you've narrowed down your search and have a better idea of what would be your best business travel rewards credit card, you may want to explore the different ways to save on business travel.
Ways to save on business travel
Traveling can incur a range of different expenses. Which area of business travel you decide to prioritize when it comes to saving money and redeeming travel rewards will vary based on your own preferences and circumstances.
One way to save on hotels is by using a business credit card affiliated with a hotel chain. For instance, some hotel credit cards may offer an accelerated earn and statement credits when you stay at an affiliated hotel. A card like this may be especially appealing if you're partial to a certain hotel chain.
Other non-affiliated cards may allow you to redeem your earned points on hotel accommodations. If you've earned enough points through spending, you may even be able to pay for the entirety of a hotel stay using those points.
If you're looking to save on flights, there are a few ways to do that. A business credit card, such as the Chase Ink Business Preferred®, allows you to redeem earned points to pay for flights.
Another option is by applying for a business travel rewards credit card that offers a companion fare. This may be a good choice if you have multiple employees traveling together. With this type of reward, you may be able to receive a second airline ticket for a discounted price. Some cards have a set companion fare price, while others may offer the second ticket for only the price of taxes.
Some credit cards may also offer reimbursement for programs like TSA PreCheck and Global Entry if that card is used to pay the application fee.
While these programs are not a requirement for traveling, having access to expedited security can help save time.
If you find that dining out while on business trips makes up a big chunk of your expenses, you may want to look into a cash-back card, such as Chase Ink Business Cash®. Some cash-back business cards award extra points for dining out. You can also redeem rewards for gift cards with some credit cards. You may be able to use these gift cards for payment at restaurants. It's important to note that not all cash-back business cards are the same, so be sure to familiarize yourself with the exact terms of the card you're interested in.
If you or your employees rent cars when you travel, there are also card options available there with cards that have travel redemption options. Some business travel cards offer cardholders the opportunity to redeem points for rental cars. Plus, many business cards also provide rental car insurance as one of their business benefits.
How to apply for a business credit card
Once you choose which business credit card with travel rewards is right for you, there is some information you'll want to have on hand before applying.
- Business information such as name, address and contact information
- Age of business
- Number of employees
- Annual revenue
- Estimated monthly spending
- Employee identification number (EIN) if you have one
You'll also need to provide your personal information, such as your name, home address, email, phone number, social security number and income.
Ultimately, there is no singular “best" business credit card for travel rewards — just the best card for you. By evaluating your business' spending and travel habits, you can find a card that fits your needs.