One of the best, yet perhaps hidden, perks of using a credit card for your business is the opportunity for discounted or free travel. If you’re a regular credit card user, then accumulating points big enough to get such an incentive might take a while. But if you’re a business owner, then that comes with a huge spending power that you can maximize to get free stuff. But of course, not everyone knows this nifty hack. Especially if you just started your online business, you might get too excited about the extensive list of benefits that some luxury credit cards give. So how do you travel at a discount and for free through your online business? Here’s a quick and simple guide for you.
Know When To Start Looking For A Premium Credit Card
Obviously, the more premium your credit card is, the better the rewards that you get from it. Availing of a business credit card is a great way to manage your finances and separate them from your personal ones. It will also allow you to take advantage of perks that are not usually offered in personal credit cards —one of them is better points for travel purposes. Of course, you just have to know when you should start applying for business credit cards and when to upgrade them to premium status. The general rule that most businesses follow is if they anticipated spending around $10,000 of business-related costs in a month, then they should start looking for business credit cards.
Choose The Right Credit Card For Your Business
Many business credit cards offer eye-catching perks that are meant to attract business owners like you. Make sure that you read all the fine lines before signing into one. Different offers and perks like free travel and discounts are only unlocked after hitting a spending threshold. Don’t avail of a business credit card simply because the perks are attractive to you —you also need to take into consideration if you can realistically reach the monthly minimum spending. So don’t spend the money that your business doesn’t have. Remember, there’s no such thing as free lunch. You still need to spend money just to get your free travel. You can settle for a business credit card with minimal spending that your business can comfortably reach. Over time, you’ll accumulate points enough to get free travel out of it, or at the minimum, some discounts.
Check The History Of The Bank’s Point System
Normally, credit card companies offer great rewards systems in your first year of use. That’s how they attract clients especially big spenders like you who are looking for a business credit card. But every year, more and more banks and companies are raising the “costs” of their reward redemptions. This is even more common in travel-related redemptions like flights and hotels. Such a huge change can drastically affect your chances of getting free flights especially if you’re sticking to a monthly spending cap for your business. So before you sign up for a business credit card, do a little research on their rewards system. You can also ask your agent how frequently they change their point system so you can calculate if that particular card can still be beneficial to your business’ spending habits.
Use Your Business Credit Card For All Your Business Purchases
Regardless of which kind of business credit card you have, you need to accumulate points to redeem your travel perks. Reach your benefits faster by completely dedicating all your business expenses to your credit card. That includes bills, inventories, and everything in between. If you’re the type of person that flinches when they see the build-up on their credit card, then you can build a habit of settling the payment immediately after using it. Or, for a more convenient process, you can have your bank set up an automatic payment for your business card. On the same note, you should also make sure that you completely separate your personal spending from your business spending. Aside from the obvious financial management reasons, some business-related payments on your credit card can be written off depending on your country’s tax system. If you use your business card for personal purchases, then you’ll have a hard time when it comes to monitoring your tax returns.
Find The Best Redemption Values For Your Travel Points
If you want to travel completely free out of your business credit card, then you need to exercise a little more patience when it comes to redeeming your points. A lot of credit card companies design their redemption system by making travel discounts more “attainable” than let’s say a round-the-world trip. Because generally, people tend to redeem the first thing that they could afford with their points. So save up —you’ll get more of your money’s worth when you opt for the bigger point redemptions than small, frequent ones. You can also opt for smaller adjustments to make your free travel more attainable. Instead of flying first or business class, a seat in the economy might be more viable especially if it’s not a long-haul flight.
Don’t Just Stick To A Travel Rewards Credit Card
If you’re looking to gain free travel out of your business’ spending, then you should consider broadening your search beyond the usual travel rewards credit card. There are a lot of different reward types for business credit cards that can help you get free travel out of it. A cash-back credit card can give you a better edge in some cases if you need the flexibility that it offers. The Chase business cards are great to begin with because you get to accumulate valuable Chase UR points. If you are not sure which credit card would be the best fit for you, the best way to go around it is to go to different banks and companies offering business credit cards. Ask for an agent to help you navigate around their services and choose the best one that you know your business will get the most use out of and you won’t have a hard time keeping up with it. As for me, after trying out other credit cards in the past, I’m sticking with my Chase card which I use to redeem for free hotel stays and my Amex business card which I use to get airline miles. Both have zero annual fees so there is no reason not to keep both cards in my wallet. YAY for more points towards free travel for me!
CONCLUSION
It’s important to note that you don’t have to have a brick-and-mortar store in order to apply for a business credit card. Whether you sell used clothes or art online, tutor on the side or simply spend your own money on business expenses as an employee, you’re eligible to apply for a business card.
Just remember that you should try to keep business and personal expenses separate whenever possible. Business cards do not have the same consumer protections as personal cards, and mixed expenses can get messy during tax season.
Want to travel for free like I do? Check out my blog posts on how to start an online business!