The perks and pitfalls of a business credit card

Posted by Jules Category Credit Cards

As with any type of credit card, it’s important to know what you’re signing up for when you apply for a business credit card. Business credit cards work in much the same way as standard credit cards, in that they allow you access to credit, and in return they attract fees and interest. However, business credit cards also provide perks specific to running a business.

If you are thinking of applying for a business credit card, here are some factors you may want to consider.

The Perks


Many business credit cards are also rewards cards, offering the cardholder the chance to earn points as they spend. Depending on the card and the rewards program, this could involve earning points that can be converted into cashback, flights and travel, merchandise, or in-store purchases.

If you want to make the most of the rewards program on your business credit card, choose a card that rewards the way you spend, and gives you the rewards you want. Bear in mind that rewards generally don’t come for free. Some credit card providers charge higher interest rates and fees on rewards cards, especially on Platinum and Gold options. Make sure the rewards you earn are actually worthwhile.

Access to Credit

One of the main reasons to apply for a credit card is to gain access to credit. Credit can be a vital part of any business, providing a valuable source of cashflow. A business credit card account can have numerous cards, which can be used by the business owner, managers and employees as required. Some business cards also allow different levels of access and different credit limits for each cardholder.

Having a business credit card means access to higher credit limits, which can be extremely convenient when it comes to organising meetings, conferences and events. Businesses that are looking to organise a conference in Bell City for example, could choose to cover the cost of the conference on their business credit card.

Bell City has 15 conference rooms suitable for events of all sizes, from intimate seminars to large conferences of up to 500 people. Should a business want to host their event there, the costs could be covered on their business credit card if their card limit allowed for it. The business could also earn valuable rewards on the purchase if they are involved in a rewards program.


As with any credit card, there can be many extras included on a business credit card. These could include introductory purchase offers or balance transfer offers, bonus rewards points, complimentary insurances, and travel perks. Be sure to read the small print to find out more.

The Pitfalls


Interest is an important factor on any credit card. You may find that the business credit card you choose has a high rate of interest. If this is the case, be sure to pay off the balance in full at the end of the month, and take advantage of any interest free days. If you plan to have a revolving balance, choose a business credit card with a low rate of interest – even if it means it has fewer features.


Credit cards can attract all kinds of fees. Before you sign up for a business credit card, find out what fees you will pay. This can include annual fees, cash advance fees, monthly fees and more. Always avoid fees that can be avoided, and make sure you are not paying out more in fees than you get back in extras and rewards.


As of August 1, Australia went PIN-only. That means you can no longer sign for credit card purchases, and must use a PIN to pay. Before you sign up for a new credit card, find out more about how the PIN-only system works.

Jules Gillian Shiells

Jules has been writing for several years with experience in the Public Relations Industry and more recently through her own copywriting business. She has ample experience in writing about financial services, products, news, current financial affairs and more.

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