3 Signs You've Chosen the Wrong Small Business Credit Card

It may be time for a switch.

Just as everyday consumers don't always plunk down a pile of cash every time they make a purchase, so too might your small business rely pretty heavily on credit cards to do things like buy supplies and pay bills. But your small business credit card should serve your needs well. And if these signs apply to you, it may be time to move from your current credit card to a new one.

1. You're paying an annual fee but not getting enough in return

Some small business credit cards impose annual fees but offer a host of additional benefits that make those fees worth paying. You might, for example, spend $250 on an annual fee for your small business credit card, but also get twice that much money back in the form of extra cash back on your purchases.

But it's not a good idea to spend money on an annual fee credit card if you're not really getting extra benefits from it. So take a look at your spending and rewards, and see if that fee still makes sense to pay. If not, consider closing your account or downgrading to a different small business credit card from the same issuer -- one that doesn't come with an annual fee.

2. You're not getting much in the way of cash back or rewards

It's not just regular consumers who enjoy getting cash back or reward points for their purchases. As a business owner, your goal should be to score as much cash back on your business purchases as you can get. But if your current credit card isn't making that easy, then it may be time for a switch.

If there's a specific category you tend to spend heavily in, it pays to open a small business credit card that offers extra cash back for that type of spending. So let's say you own an IT business and do a lot of driving to different client sites. You might spend a lot of money on gas during the year, and so in that case, it pays to have a small business credit card that offers bonus cash back on fill-ups. If your card doesn't offer that, a different one might.

3. Your spending limit doesn't give you enough flexibility

You might prefer to use your small business credit card to make large purchases for your company and pay those bills off at the end of the month rather than make large purchases in cash. But if your credit card doesn't come with a generous enough spending limit to allow for that, and your credit card issuer won't raise your spending limit, then it may be time to seek out a different credit card -- one that will give you the leeway you need.

Using the wrong small business credit card could make running your business more difficult. And it could also limit your ability to rack up rewards or cash back. So if any of these signs apply to you, it may be time to start doing your research so you can find a credit card that's more suitable for your business.