How Many Business Credit Cards Should You Have in 2024?

We all want to do everything "right" to run our own small business. Unfortunately, it's often hard to know the right move when every business plays by its own rules.

For example, when handling your business's finances, you might wonder about the right way -- and wrong way -- to use business credit cards. Should you have one? More than one? How many is too many?

You should have at least one credit card

My rule of thumb for small business credit cards is the same as it is for personal cards: You should have at least one. I have a few reasons behind this recommendation.

Credit cards are handy financing tools

The simple convenience of a credit card is a big selling point to me. I don't need to write a check, go to the bank to pull out cash, or worry about qualifying for a vendor credit line. I can just pull out my business credit card and go about my day.

More than that, though, credit cards don't require me to have money in the bank right that moment. A lot of small business owners can have inconsistent cash flow, especially when you're waiting on folks to pay their invoices. You can put important expenses on a credit card and give yourself at least a couple of weeks of leeway.

If you need even more leeway, you can find a card with a 0% intro APR offer. This could give you six months or more of 0% interest on purchases, so you can pay charges off over time without accruing lots of fees.

You can separate business and personal expenses

A clear delineation between your personal and business expenses can make all sorts of tasks easier, from your everyday business accounting to your federal and state taxes. Having a business credit card means you can keep business expenses off your personal cards. This makes those expenses easier to track -- and, later, potentially deduct from your tax liability.

Additionally, if all of your business expenses are on their own card, you can more easily pay them from your business checking account. This means you aren't trying to track down business expense payments in your personal accounts.

It's also worth pointing out here that (most) business credit cards will have less influence on your personal credit, too. Most issuers won't report your card as a new account or send balance information to the consumer credit bureaus. (There will be a hard pull from the initial credit check, but that should be it from most issuers unless you default on the account.)

You can earn rewards on your business expenses

I never underestimate the earning power of a good rewards credit card -- or, heck, even just a half-decent one.

Right off the bat, your rewards card can earn you a good welcome bonus. But the value doesn't stop there. Pick a card with bonus rewards in the categories your business uses most, then watch the rewards rack up. A nice thing about business cards is they often have bonus categories you won't see on personal cards, like office supplies or advertising.

My business doesn't have a ton of overhead, but even just my quarterly tax payments earn me quite a bit in rewards each year. (Yes, even after you include the processing fee you pay for using a credit card.) And that's on top of the other rewards, perks, and credits I get from my small business credit cards.

A handful of cards can maximize your rewards

Although I think everyone should have at least one credit card for their business, I'll often suggest adding a second or third card, as well. Why? To maximize rewards, of course!

I've worked on my personal card collection to cover all of my life expenses. I get at least 5% cash back on pretty much all of my personal purchases. I did the same thing for my business, too, choosing cards that offer the best return on my top spending categories.

Build your collection up over time so you're able to earn all the welcome bonuses. You don't want to be struggling to meet multiple spending requirements at one time. (This can lead to overspending.)

Don't exceed the number of cards you can manage

There's no real cap on how many credit cards you -- or your business -- can have at any one time. Well, alright, a few issuers have their own rules about how many of their cards you can have; but there's no blanket rule or law.

That being said, don't exceed your own ability to wisely and responsibly manage your credit cards. (This goes for personal and business credit cards alike.) The more cards you add to the collection, the harder it can be to stay on top of balances and due dates.

Missing a business credit card payment can mean a late fee. If you have a 0% intro offer, a missed payment can cancel it. If you default on the card and the issuer charges it off, that will be reported to the consumer credit bureaus and could also wreck your personal credit.

Business credit cards can be powerful tools, and they're worth having in your wallet. Just make sure you stay on top of your payments to avoid getting into trouble.