Business credit cards can be powerful financial tools—but only when used wisely. Whether you’re a solo entrepreneur or growing a small team, here’s how to keep your finances healthy while making your credit card work for you, not against you.
1. Choose the Right Card for Your Business Needs
Not all cards are created equal. Some offer high cash-back rates, others offer travel rewards or extended payment terms. Here’s what to look for:
- Cash-back cards: Great for day-to-day expenses like office supplies, utilities, or digital tools.
- Travel rewards cards: A good fit if you travel frequently for business or client meetings.
- 0% intro APR cards: Ideal for making large purchases that you can pay off over time interest-free.
Tip: Don’t just go with what your bank offers—compare cards on sites like NerdWallet or The Points Guy to find your best fit.
2. Use One Dedicated Card for Business
Mixing personal and business transactions creates chaos at tax time. Always keep a separate card for business spending—it simplifies:
- Bookkeeping
- Budgeting
- Tax deductions
- Audits
Plus, your bookkeeper (hi 👋) will love you for it.
3. Pay It Off Monthly—Or Create a Paydown Strategy
If possible, pay your balance in full each month to avoid interest charges. If you can’t, create a realistic repayment plan:
- Pay more than the minimum each month
- Prioritize higher-interest cards
- Use extra income or savings to make lump-sum payments
Carrying a balance? Track it and factor interest into your monthly budget so it doesn’t sneak up on you.
4. Use Your Credit Card for Recurring Expenses
Many recurring business expenses (think: software, phone bill, advertising, internet) can be put on your credit card. This helps you:
- Build your credit history
- Earn rewards
- Keep monthly expenses predictable
Just make sure to review your statements regularly so nothing sneaky slips through.
5. Keep an Eye on Your Credit Utilization
Ideally, don’t use more than 30% of your available credit. High utilization can lower your credit score and raise red flags with lenders. If you’re close to the limit, consider:
- Asking for a credit limit increase
- Making mid-cycle payments to free up space
6. Monitor and Protect Your Account
Review transactions weekly and set up alerts for unusual charges. Also, opt into your card’s fraud protection features and use virtual cards when available for extra security.
Need help tracking business expenses or getting your credit card spending in order? That’s what we’re here for. At Tally Up, we help you stay organized, optimize deductions, and feel confident about every dollar.
👉 Book a free consultation and let’s clean up your credit card chaos together.