How many business credit cards should I have?

Having more than one business credit card gives you access to more capital and may also provide you with the opportunity to earn more rewards and take advantage of different benefits. This increase in purchasing power can be helpful when growing your business.

Deciding how many business cards you should have is an individual decision and ultimately depends on your company’s unique needs and goals. Keep reading to learn more about having multiple business credit cards to determine whether this is the right move for you.

What you’ll learn:

• In many cases, you can have more than one business credit card—but certain card issuers may have their own limitations on the number of cards you can qualify for.

• Having multiple business cards can give you access to more capital, help you take advantage of different rewards structures and provide various card-specific benefits.

• Before you decide to get another business credit card, consider the impact it can have on your credit scores, review interest rates and determine whether a potential added annual fee is worth it.

In most cases, yes, you can have multiple business credit cards—even from the same issuer. Having more than one business credit card can be a strategy to help you expand your buying power while earning rewards. Since business credit cards can offer a variety of benefits and rewards, using multiple cards can maximize your rewards-earning potential. 

Each business has its own needs based on its size, revenue, expenses and more. This means there isn’t a hard-and-fast rule about the number of credit cards a business should have.

Having multiple business credit cards can offer expanded purchasing power, access to a variety of rewards and benefits, and the opportunity to build credit scores—all of which can help as you expand your business. 

Here are some of the main advantages of having more than one business credit card:

When you open a traditional business credit card, you’re typically extended a line of credit—up to a certain credit limit—that can be used and paid down repeatedly. Opening additional credit cards can provide access to more capital, which can help fund a large business expense, improve cash flow or provide a backup option for unexpected costs.

Business credit cards can offer various rewards programs, like travel rewards or cash back. By strategically matching expenses to the right card, you can maximize your rewards potential. For example, you could use a travel rewards card for all your business travel needs and a cash back card for everyday expenses. 

Consider Capital One Business credit card options, such as Venture Business and Spark Cash Plus, which can be used concurrently to earn different types of rewards. Venture Business offers unlimited 2X miles on every purchase, whereas Spark Cash Plus offers unlimited 2% cash back. To estimate how much you could earn based on your monthly spending, check out the Venture Business rewards calculator and the Spark Cash Plus rewards calculator.

Some business credit cards report payment activity to the consumer credit bureaus, which, in turn, can impact your business credit scores. And depending on the specifics of your business card agreement, business cards may also influence your personal credit scores. This means you may be able to build both your business and personal credit by responsibly using multiple business credit cards. 

Business credit cards offer a variety of features, allowing you to layer benefits and maximize the value of having multiple credit cards. For example, some cards have no preset spending limit (NPSL), some may offer more points with certain types of purchases and others could offer elevated travel benefits that you can enjoy while you’re on the road for work.

Potential disadvantages of having multiple business credit cards can include more hard inquiries, more responsibilities to manage and higher interest rates.

These are some possible drawbacks to be aware of before you secure multiple business credit cards:

When you apply for a business card, your personal credit scores may be pulled—referred to as a hard inquiry—to review your financial standing and determine which cards you may be eligible for. This can cause your credit scores to dip. That’s why, if possible, you should try to avoid applying for too many cards in a short period of time.

One step to help avoid unnecessary dings to your personal credit score is to get pre-approved for business credit cards before you apply so your credit scores aren’t affected prior to your application.

Business credit cards may come with different annual fees and payment due dates, which can make managing each card responsibly more complex. If you’re considering multiple business cards with annual fees, it’s important to evaluate how you’ll use each one to determine whether the fees are worth the cost.

Compared with other types of company funding, business credit cards may have higher interest rates if you carry a balance. This is important to consider, especially if you’re making a larger purchase that you plan to pay off over time. 

Multiple business credit cards can mean multiple card payments on different due dates. It can be helpful to keep a record of your various due dates to avoid missing a payment and incurring late fees. To stay organized, you might schedule automatic payments or set up account alerts to maintain a positive payment history for multiple business credit cards. 

If you have a Capital One Business account, another way to help manage your credit cards is by assigning a trusted employee to be an account manager, who can do most of the same administrative tasks as you can.

Determining when you should get another business credit card depends on your company’s individual credit, finances and needs.

Here’s how to know it might be a good time to add a new business credit card to your portfolio:

• Your credit score has changed: If your credit score has improved since the last time you applied for a card, you might be eligible for a wider variety of credit cards that could help you move your business forward. 

• You’re able to manage multiple card payments: If you already have a card and you’re able to consistently make payments, you might feel confident adding a new card to your portfolio.

• Your business costs have gone up: If your operating costs have increased, adding another business credit card can open up more credit that can help fuel business growth.

• Your travel needs have increased: Certain business credit cards are specifically designed with company travel in mind. For example, adding a card that offers rewards in the form of miles or provides entry to airport lounges could give you access to benefits you might not otherwise have had with your existing card.

Here are answers to some more common questions about having multiple business credit cards:

By having multiple business credit cards, you open up more capital to potentially help you reach your business goals. And if you choose business cards that complement each other, you can maximize rewards while taking advantage of other benefits tailored to the unique needs of business owners. 

If you’re interested in adding another business card to your portfolio, check out business credit card options from Capital One Business and see whether you’re pre-approved—with no harm to your personal credit score.