How many business credit cards should I have?

As you work toward growing your business, you may consider ways to expand your purchasing power by opening multiple business credit cards. 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.

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 if 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 before you can qualify for multiple cards.

• 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, review interest rates and determine if an added annual fee is worth it.

In most cases, yes, you can have multiple business credit cards. Having more than one business credit card can be a strategy to help you expand your buying power while earning rewards. Different business credit cards can have various benefits and reward structures. This means you can maximize your rewards-earning potential by using multiple business credit cards. 

In general, there is no limit on the amount of business credit cards your company can have. But there may be different qualifying guidelines and restrictions, depending on the issuer.

From cash back to travel rewards and from charge cards with no preset limit to traditional fixed-line cards, there is a variety of business credit card options. And it may benefit your organization to have more than one credit card as you expand your business. Here are some of the main advantages of having more than one:

When you open a traditional business credit card, you’re typically extended a line of credit—up to a certain 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 or improve cash flow.

Different business credit cards offer various ways to earn rewards—such as travel rewards or cash back. For example, Capital One offers Spark Miles and Spark Cash Plus, which are examples of two business cards that can be used concurrently to earn different types of rewards. Spark Miles offers unlimited 2X miles on every purchase, whereas Spark Cash Plus offers rewards in the form of unlimited 2% cash back. To estimate how much you could earn based on your monthly spending, check out the Spark Miles 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 business and personal credit with responsible use.

Business credit cards offer a variety of features, allowing you to layer benefits and maximize the value of having multiple credit cards. For example, one may offer more points with certain types of purchases, while another card could offer elevated travel benefits that you can enjoy while you’re on the road for work.

While layering business credit cards has its advantages, there are some potential disadvantages to be aware of before you secure multiple cards for your organization, such as:

When you apply for a business card, your personal credit scores may be considered. This is because your personal credit score might 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, which is why, if possible, you should try to avoid applying for too many cards in a short period of time. One step to consider is getting pre-approved for business credit cards before you apply so your credit scores aren’t affected prior to your application.

Certain business credit cards come with an annual fee—especially if they offer top-tier rewards and benefits. If you’re interested in multiple business cards with annual fees, it’s important to consider how you’ll use the cards to determine if the annual fees are worth it.

Compared to other types of 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. Keep in mind that some cards—like pay-in-full charge cards—don’t assess an interest rate as the balance must be paid in full each month.

If you have more than one business credit card, you could have multiple card payments on different due dates. It’s 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. 

Determining whether you should get another business credit card depends on your company’s individual goals and spending habits. Here are some reasons why you may consider adding a business card to your portfolio:

• You want to maximize rewards: You can use multiple business credit cards to accelerate your rewards-earning potential. For example, you might choose to make travel-related purchases on a Capital One travel rewards business card that earns miles while putting all of your other expenses on a flat-rate cash back business card.

• You need more credit: Another reason to consider getting an additional business credit card is to access more capital. You can use this new line of credit to fund purchases that can help move your business forward.

• You’re looking for specific benefits: Some credit cards provide unique benefits—like a statement credit when you purchase TSA PreCheck® or Global Entry or access to miles transfer partners—advantages you may not find with other business cards. In this case, adding another card to your portfolio could allow you to take advantage of different benefits that your current card doesn’t offer.

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 traveling 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.

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 and see if you’re pre-approved—with no harm to your credit.