Top benefits to look for in a business credit card
Quick insights
- Business credit cards may offer you a quick and convenient way to access a line of credit.
- Some business credit cards may offer complimentary cardmember benefits, such as cell phone protection, roadside dispatch and auto rental damage collision waivers.
- Some business owners may prefer the rewards structure of cash back credit cards.
You might consider the reward structures if you’re comparing business credit cards, but it’s also worth having a look at the benefits you can access as a cardmember. If you or your employees use cell phones, travel frequently or drive a vehicle for business purposes, a business credit card could be valuable to you.
Read on to learn more about business credit card benefits.
What is a business credit card?
A business credit card is a way to access credit and make purchases. Business owners may apply for a credit card to help them reach their business goals. In addition to the line of credit, some business credit cards may offer benefits, features, rewards and perks that help address the needs of business owners or even help reduce their expenses
Benefits of using a business credit card
Business credit cards offer many benefits for business owners. If you’re interested in getting a business credit card, consider how it could potentially help in the following ways.
- Some business owners may find that the credit card application and approval process is faster than applying for a loan.
- Business credit cards sometimes offer business-friendly features, such as complimentary employee credit cards and comprehensive expense tracking software.
- A credit card is a widely accepted payment option and could be a quick and convenient way to pay some of your vendors.
- Business credit cards typically offer a higher credit limit than consumer credit cards.
- Responsible use of a business credit card may help you build your business credit score, which could potentially help you access higher lines of credit and lower interest rates in the future.
Some business cardmember benefits that come with a business credit card
Some business credit cards come with a benefits program. As part of the program, cardmembers may access exclusive benefits, including services and insurance coverage. Credit card issuers typically describe these benefits and provide coverage information in the Guide to Benefits. While cardmember benefits are usually complimentary, you may need to pay an annual fee for many of the business credit cards that offer them.
Cell phone protection
If you use a cell phone for business purposes, you might pay your carrier a monthly fee for cell phone protection. This protection often covers eligible repairs to or the replacement of your device.
Some business credit cards may also offer cell phone protection to cardmembers. This complimentary coverage potentially allows business owners to cancel their carrier’s cell phone protection and eliminate this monthly fee.
If you’re considering whether this or any other cardmember benefit meets your business needs, you may want to review the credit card’s Guide to Benefits to ensure the coverage is sufficient.
Roadside dispatch
Roadside dispatch is a service that provides roadside assistance for vehicular emergencies, such as a flat tire, mechanical problem or dead battery. Some business credit cards may offer cardmembers access to this service. Depending on the guidelines, you may receive complimentary roadside dispatch, or you could be required to pay a flat fee per service. If you’re a business owner with a fleet of vehicles, this benefit could provide value the next time there’s an emergency.
Auto rental damage collision waiver
You may have been offered an auto rental damage collision waiver the last time you rented a car, but some business credit cards offer this coverage too. The waiver typically covers damage to the rental car and other liabilities.
It’s a form of secondary coverage, meaning your personal auto policy pays out first. Your credit card’s auto rental damage collision waiver may reimburse you for your deductible and cover other expenses not covered by your personal auto insurance.
This cardmember benefit may allow you to forego the rental company’s auto rental damage collision waiver. It may be helpful to review the credit card’s Guide to Benefits to determine if the coverage meets your needs. If your business requires you or your employees to rent cars regularly, this benefit could be valuable to you.
Cardmember travel benefits
Among business credit cards, you’ll find several options in the travel rewards category. These are some of the benefits that travel rewards business credit cards may offer:
- Travel insurance: Get reimbursed for eligible expenses when a trip is canceled, interrupted or delayed.
- Baggage insurance: Get reimbursed for your lost luggage and its contents or for the purchase of any essentials while you wait for delayed baggage.
- Travel and emergency assistance services: Your Benefit Administrator can connect you with the right local emergency or assistive services when emergencies happen while you’re traveling.
These cardmember benefits could provide peace of mind if you and your employees travel regularly for business purposes.
How to earn cash back with a business credit card
Just like consumer credit cards, some business credit cards reward you with cash back or points. Business credit cards that offer cash back usually award you a percentage of your spending. “Cash back” is awarded in the form of a check, statement credit or bank transfer. The cash back percentage may be higher in specific spending categories. Typically, these categories give businesses the opportunity to earn rewards on everyday business purchases.
Some credit cards may offer a range of options for redeeming business card rewards. For example, you may have the option to redeem points for cash back. It can be a simple and straightforward way to use your rewards, and it may be the right choice if you don’t want to redeem your rewards for travel.
If you’re researching which business credit card is right for you, you may want to consider cards that offer rewards and benefits that align with your business spending and objectives.
In summary
If you’re interested in a business credit card, the cardmember benefits are one of many factors you may want to consider. Benefits like auto rental collision damage waivers, roadside dispatch and cell phone protection could help business owners avoid costly expenses.
