The best credit card for your small business

@Money March 8, 2012: 9:15 AM ET
If you're a small business owner and thinking about using credit cards to cover expenses, it pays to choose the right one.

If you're a small business owner and thinking about using credit cards to cover expenses, it pays to choose the right one.

(MONEY Magazine) -- About 37% of business owners are using credit to cover some of their costs, reports the National Small Business Association. The optimal card for your operation depends on how you'll use it.

If you'll carry a balance

Rate should be your primary concern, says Beverly Harzog of Credit.com. APRs on business cards average slightly lower than personal cards (13% vs. 14%), but you can do better with the latter if you have an excellent credit score.

More important, personal card issuers must abide by the CARD Act, which protects you from arbitrary rate hikes.

The best choice for those with 750+ credit scores: Simmons First Visa Platinum, with a 7.25% APR and no fee.

If you won't carry a balance

Go for the business card. You'll get quarterly and annual spending reports -- and establish a company credit history.

Also, such cards often have higher spending limits, says Bill Hardekopf of LowCards.com.

Consider one with money-saving rewards: Capital One Spark Cash Business, for example, pays 2% on everything, and the $59 fee is waived the first year.

Do you know a Money Hero? MONEY magazine is celebrating people, both famous and unsung, who have done extraordinary work to improve others' financial well-being. Send an email to nominate your Money Hero. To top of page

CNNMoney Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.