If you’re an entrepreneur with a new start-up business, there will be many questions you’re looking to answer. One of which is likely to be is whether a business credit card is worth having. Only you can answer that question, but you can come up with a more informed answer if you know a little bit about the pros and cons of having and using a business credit card.


1. You will not be mixing business with pleasure

If you have a business credit card that you use solely for your business expenses as well as a separate credit card for your personal purchases, it will be easier for you to keep track of both business and personal expenses. You will receive a separate statement each month, and you can easily track your business expenses to make certain that you are not going over budget.

2. Bookkeeping assistance

When you have a business credit card, you will often be provided with online tools that will be of great assistance in helping you to manage your account more effectively.

3. Build a good credit history for your business

Using a business credit card responsibly will allow you to build a positive credit history for your small business. Of course, this will only be the case if you pay your balance off promptly or at least pay the minimum every month and do not exceed your line of credit. By using your credit card responsibly, it can pay off in the long run.

4. Obtain rewards

Many business credit cards provide beneficial rewards, such as discounts and points that can be put toward purchases that may help your business.


1. Higher interest rates

You may find that your business credit card will carry a higher interest rate than a personal card, a price you will have to pay for the convenience provided by having such a card. If you have an established business that is doing quite well, this may not be an issue. If, on the other hand, you are just starting out with your business, it may be more to your benefit to hold off on acquiring a business credit card with a higher rate of interest, unless you are able to pay off your balance in full each month to avoid paying any interest.

2. Not as much protection

Credit cards used for personal purchases often carry more protection than a business credit card. You may not get the same amount of protection if there is a problem with billing or if you need to return a purchase. Before acquiring a business credit card, you should research what kind of protection will be offered to you for your business.

3. Higher fees for late payments

You may also find that by using a business credit card, your fees will be higher if you make a late payment. You will need to be very diligent about paying your bills on time if you do not want to be stuck with high fees.

As with anything in life, business credit cards have advantages and disadvantages. Hopefully, when you take the above points into consideration, you will have a more informed idea as to whether a business credit card will be of benefit to you and your company.

About the Author

Claire Atkinson writes about financial issues for http://www.kanetix.ca/credit-cards, a financial services comparison site.