The history of the credit card is very interesting in that each decade of its existence it has been defined by something very specific. In other words, something new and exciting has been either introduced into the industry for the first time or alternatively redesigned to be better from an earlier model. In the 1950s when the credit card was originally introduced the novelty was that you could take this card around and pay for things with money you didn’t actually have. It was like taking a loan, except you didn’t need collateral.

In the 1960s and 1970s the novelty was the lowered interest rates and the concept of the introductory period where most credit cards had ultra low interest rates attached to them. In the 1980s and the 1990s the reward programs really began to take off and things like air miles, hotel rewards, frequent diner and many other kinds of these reward cards started to become common. This decade not only has the reward programs become even more intricate in their nature but there has also been a surge in the usage of a type of credit card that has been around for a very long time: the business credit card.


As previously mentioned business credit cards have been around for a very long time and indeed a business credit card is very good at what it does nowadays. People love using business credit cards because of all the great advantages inherent to them and because these advantages have to a large extent only been available for a few years people have been flocking towards the usage of business credit cards in a big way. Some of the new advantages of business credit cards are listed below.

Logistical Advantages: This isn’t really a new advantage per say but it is important enough that it needed to be included in this article. When you use a credit card for something you are doing two things primarily. Firstly, you are freeing up your cash to use elsewhere should an emergency arise and also you are allowing yourself to auto track your expenses because every transaction you do on your credit card makes its way onto your statement at a later date (i.e. after the grace period). Both of these aspects are very important ones to have in business and the fact that the credit card automates them serves to make them very attractive to many business owners.

Reward Advantages: This is the big one; the reason that business credit cards have really taken off. Reward programs have found their way onto business credit cards and have affected it in such a way that business credit cards now actually help a business’ bottom line. Consider a cash rewards credit card with a roofless 1% cash back. Now let’s say that you spend $10,000 a month on your business expenses and you pay it all back at the end of the month with your normal cash flow. One percent of ten thousand is $100 and that basically means that under this scenario each month you are paid $100 just for doing what you were normally doing anyway. Therefore, the cost of doing business can actually help your bottom line; this comes as a very pleasant surprise to most business owners.

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