How business credit cards for travel work
Business credit cards for travel provide rewards that you can redeem for travel purchases. With these cards, you can essentially travel for free with credit card points.
This type of credit card usually also includes other travel-related benefits. At a minimum, most don’t charge foreign transaction fees, so they’re useful for international travel. Business travel cards with an annual fee often offer many additional benefits that can save you money, such as access to airport lounges or free nights in hotels each year of card membership. .
Do business credit cards affect my credit score?
Credit card companies check your consumer credit score when you apply for a small business card. They also usually require a personal guarantee, which means that even if it’s a business credit card, you’re still personally liable for any debt on it.
Some credit card issuers report business card activity to the consumer credit bureaus. This means that your business card could affect your personal credit score. Other card issuers will only report activity if your card account is overdue.
LEARN MORE: Do business credit cards affect my credit score?
Types of Business Travel Credit Cards
There are several types of travel credit cards. When looking for a business travel card, it helps to start by learning about these different types of cards.
Corporate airline credit cards
An airline credit card is linked to an airline, such as Delta or United. When you use the card, you earn miles as part of the airline’s frequent flyer program. For example, Delta Credit Cards earn Delta Miles on eligible purchases. Many of these cards also give you free checked baggage and other benefits with the airline.
Travel cards linked to a company, such as an airline, are only a good choice if you are a loyal customer. If you fly with the same airline several times a year, one of its business cards might be worth a look.
Hotel credit cards
A hotel credit card is linked to a hotel chain, such as Hyatt or Marriott. He earns points in that hotel’s loyalty program, and you can use those points for free stays. Hotel cards can also give you a free night each year of card membership and additional benefits with the hotel chain.
This is another type of business card that only works for loyal customers. If you spend a lot of time at a hotel chain, its business credit card is probably fine for you.
Corporate credit cards with fixed rate travel rewards
These business travel cards are as simple as they come. Their rewards have a fixed value and can be used for travel purchases. The most common rate is $0.01 per point, which means that 10,000 points could cover $100 in travel purchases made with the card.
If you want an easy-to-use travel map, this type of map works well. You will be able to redeem rewards for virtually any type of travel purchase.
Corporate credit cards with transferable travel rewards
These business cards are part of a major credit card rewards program with various travel partners. You can transfer points to any of the program partners, giving you many more ways to redeem rewards.
To put things into perspective, an airline card will earn you miles that you can use with just one airline. It’s the same with a hotel card. But a card with transferable rewards lets you send your points to multiple airlines and hotels.
There’s more of a learning curve for transferable travel rewards. If you don’t mind, it’s often possible to get more value for your rewards with them. Here are the biggest rewards programs that offer business credit cards:
How to Choose the Best Business Credit Card for Travel
My rule of thumb for choosing a credit card is to start by focusing on a few key factors. Ask yourself, “What do I need most from a credit card?” »
Perhaps you are more interested in credit cards for international travel. In this case, a business card with fixed rate or transferable rewards could be the solution, as they will give you many booking options. If you’re more interested in a card to help you with business, you might want a card that offers detailed expense reports.
It all depends on what matters most to you and your business. I’ve listed some of the most common things business owners look at below so you can figure out what to prioritize:
Low annual fees: It is important to find a business card that fits your budget. Now, most business credit cards for travel charge an annual fee. There are some travel credit cards with no annual fee, but you’ll have many more options if you’re willing to spend at least $90 to $100 on a card.
Rewards and bonuses: It helps to have a card with a competitive rewards rate – the number of points/miles a card earns on every qualifying purchase. Most business credit cards also offer welcome bonuses. These are bonus points that you can earn as a new cardholder within a certain time after opening the account. Some of them are extremely valuable, so it’s worth comparing the welcome offer available on each card you like.
Employee cards: If you want employees to be able to make business purchases, check to see if there’s a charge for adding an employee credit card. You may also want to consider what kind of controls different cards offer for employee cards. There are business cards that allow you to set individual spending limits on employee cards or set up an employee as an account manager.
Travel benefits: You can find business travel credit cards with all kinds of special travel benefits. There are travel credit cards that give you airport lounge access, statement credit for Global Entry membership fees, and more. I would suggest checking out the features of several main cards to see if they have something that stands out to you.