More than 20 million credit card holders hold on to one card product for ten years or longer. Business owners are included among these people. If you've never looked for a new credit card to switch to, you could be missing out on the generous welcome bonuses and ongoing rewards that come with new cards.
Even if you've found a new business card in the recent past, it still doesn't mean that it's the best card for your needs. Since the right credit card can offer lucrative rewards, it doesn't make sense to leave money on the table. What follows are 7 signs that tell you it's time to look for a new card for your business.
#1. You put your business expenses on a personal credit card
Business expenses should always go on a business credit card, not a personal one. It's important to maintain separation between business and personal expenses because it’s the only way to demonstrate the clear accounting that you need for tax purposes. Using a business credit card is also an excellent way to build a good credit score for your business. The better your business credit score, the easier you'll find it to apply for a business loan.
#2. Your business routinely spends with credit cards
You may have business credit cards that you spend a lot with every day and earn a 2 percent reward on. However, your current card may deny you the generous rewards that you would get with a new card. For example, when you sign up for a new business card, you could get tens of thousands of points as a welcome bonus. If your business spends a lot of money with credit cards, you should look for new cards and welcome bonuses routinely so you are always getting the most bang for your buck.
#3. The nature of your business has changed
If your business has always been local, you may never have needed to pay for travel with your credit card. However, if your business has recently begun to deal with customers in other states that you will have to travel to, you should waste no time looking for a new card that gives you rewards for paying for flights and hotel rooms.
You should also consider a new business card if you have recently gone from being your company's only employee to hiring employees, some of whom have spending authority. If your existing business credit card charges you high fees for additional cards, you should find a product that offers you free cards for employees.
#4. Your card has taken away valuable perks that you used to get
Many credit cards these days roll back on benefits that used to be standard. Some business cards, for instance, have recently rolled back the price and purchase protections that they used to offer. If protection is important to you, and your business credit card no longer offers it, it could be a sign that you need to look for a new credit card product.
#5. Your card charges you an expensive annual fee
It could be worth paying an annual fee if you made full use of all the perks and benefits offered. If you pay hundreds a year in fees and still don't use the benefits, however, you should ask the issuer to waive your fee. If they don't do it for you, you should look for credit cards that don’t have an annual fee.
#6. Your card charges you a high interest rate
The only way to fully profit from the rewards and benefits of your card is to make sure that you don't carry a balance that attracts interest. The truth is, paying interest even occasionally can cancel out the benefits that you receive. If you do need to carry a balance at times, you should make sure that your card doesn't charge you too much for it. Many new cards come with a 0 percent APR over the first year and charge no more than 15 percent after the first year.
#7. You need to put a large business purchase on your card
While your current business card may offer you good features for regular business expenses, it may not be the right tool for large purchases. If you need to spend $5,000 on new computer equipment for the office, on Internet advertising or office supplies, you need a card that rewards you for it. If your card only rewards you for travel purchases, you should look for a new card that you can use for rewards on large purchases.
It's a good thing if you're satisfied with your current business credit card, but if there are ways in which a new credit card could help you with better rewards, lower interest rates or lower annual fees, you should look into getting one.
So, what’s our favorite card for business?
Right now, we prefer the Chase Ink Business Preferred. The Chase Ink Business Preferred currently has an 80,000 point sign up bonus after meeting a spending requirement. That ends up being a redemption value of approximately $1,000 towards travel and maybe more depending on how the points are redeemed. The Chase Ink Business Preferred also generates 3X points when used for business expenses such as Travel, Shipping, Internet, Cable, Phone and Advertising purchases with social media sites and search engines. Ultimately if you choose and use wisely, a business credit card can be another great tool for business owners to maximize all of the benefits available to them for running their business.