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Maximize Credit Card Rewards with a Small Business Card

Maximize Credit Card Rewards with a Small Business Card

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• Updated: October 01, 2019

If you own one of the 28 million small businesses in America, you may be overlooking an easy way to generate passive income that doesn’t require you to change anything about how you operate:  a small business card with a rewards program.

You probably already have a credit card that you use for your business purchases, but did you know that just by switching to a rewards card, you could reap thousands of dollars in cash back or gift cards every year?

Just as with personal credit cards with rewards programs, many business cards offer a percentage of your purchases – typically 1-5% – back to you.  These cards often have promotional periods with sign-up bonuses to boost your rewards even further.  For example, Capital One® Spark® Miles Select for Business will reward you with a one-time sign-up bonus of 20,000 miles once you spend $3,000 on purchases within 3 months. Earn 1.5 miles per $1 on every purchase, including those you make during the intro period.

Capital One® Spark® Miles Select for Business

Earn 1.5 miles per $1 on every purchase
Apply Now
Excellent/Good Credit
  • Excellent Benefits & KEY FEATURES

    • Earn 1.5 miles per $1 on every purchase
    • Plus, a one-time bonus of 20,000 miles once you spend $3,000 on purchases within 3 months from account opening
    • Miles won't expire for the life of the account, and there are no categories to limit where or what you buy
    • Save on interest with 0% intro APR on purchases for 9 months; 14.74% - 22.74% variable APR after that
    • Pay no annual fee or foreign transaction fees
    • Get online Quarterly and Year-End Summaries
    • There's no limit to the amount of miles you can earn
    • Fly on any airline, anytime, with no blackout dates or seat restrictions

If you are looking for a business card to help with travel expenses, the Bank of America® Business Advantage Travel Rewards World Mastercard® credit card offers more points for certain travel purchases:

  • 3X - Earn 3 points per $1 spent on travel purchases (car, hotel, airline) booked through the Bank of America® Travel Center
  • 1.5X - Earn 1.5 points per $1 spent on all purchases

Bank of America® Business Advantage Travel Rewards World Mastercard® credit card

Earn 25,000 bonus points when you make at least $1,000 in net purchases within 60 days of your account opening which can be redeemed for a $250 statement credit towards travel purchases.
Apply Now
Excellent Credit
  • Excellent Benefits & KEY FEATURES

    • Earn 25,000 bonus points when you make at least $1,000 in net purchases within 60 days of your account opening which can be redeemed for a $250 statement credit towards travel purchases.
    • Earn unlimited 1.5 points for every $1 spent on all purchases everywhere, every time-no matter how much you spend. Points don't expire.
    • Earn 3 points per every dollar spent on travel purchases (car, hotel, airline) booked through the Bank of America® Travel Center - powered by Expedia®.
    • No annual fee and no international transaction fees.
    • 0% Introductory APR on purchases for your first 9 billing cycles.
    • Redeem points for travel with no blackout dates, cash back or gift cards.
    • Get 75% more points on the base earn of every purchase you make when you’re a Preferred Rewards for Business Platinum Honors tier member. That means you will earn 2.62 points for every $1 you spend and 4.12 points per every $1 you spend at the Bank of America® Travel Center.

Be aware that most rewards cards have interest rates that would easily negate any cash back you might earn, so make sure that you can typically pay your monthly balance in full before signing up. On the plus side, many business credit cards have no annual fee!

Besides getting rewards of statement credit, cash back, or gift cards, small business cards have two distinct advantages:  they help you keep your business and personal expenses separate, and allow you to establish a solid credit history for the business itself.

Using separate cards for personal and business expenses can help simplify your record keeping, especially at tax time.  It may even save you money, as your accountant will not have to spend time sorting out which purchases belong to which category.  And, as you know, using business funds to pay directly for personal expenses is a no-no, especially if you’re incorporated.  A small business card is one more way to help you keep that distinction clear in your day-to-day spending.

Yes, you will need to use your personal credit history in order to apply for the card initially, but once the account is established, it begins building a separate history for your business.  As your business grows, an excellent credit history through the use of your rewards card will likely result in better interest rates as you apply for loans for real estate purchases or larger expenditures.

One caveat:  there is an ongoing debate as to whether or not the IRS considers credit card rewards as taxable income; even the IRS’s position seems to be changing over time.  It may even vary depending on whether you take your rewards as cash back or statement credit versus redeeming your points for gift cards to use as you see fit (i.e. personal or business).  Make sure to check with your accountant or tax preparer to be sure you are aware of the latest policies regarding rewards and taxes.

Check out our top small business credit cards.

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