Does Your Business Really Need a Credit Card? Here's How to Tell

Need? Maybe not. Want? Maybe so.

When you work for yourself, be that in the form of owning your own small business or being a freelancer, there's a lot to worry about. Your finances are likely top of mind, and you might wonder if it's worth it to get your venture its very own business credit card. For some business owners, this is an easy call -- for example, if you're traveling for meetings with your clients, it makes sense to take advantage of a business credit card that offers airport lounge access.

If you work as a freelancer, you are also allowed to open a business credit card -- they're not just reserved for businesses with lots of employees and a big budget to manage. Here's what to think about to help you decide if it's worth applying for a business credit card account.

Consider your expenses

The main reason to consider getting a credit card for your business is to make paying for your expenses easier and safer, just like with a personal credit card. If you own and operate a small bakery, you might want the ease of buying supplies with a credit card, and you might also like the higher credit limits that sometimes come with a business card. After all, if you're constantly bumping up against your credit limit, that could be a source of stress.

But if you work from home as a writer on a computer you already own and you don't make purchases for work very often, you might decide not to bother with a business credit card. That said, having a business credit card makes it much easier to keep your work finances separate from your personal ones. Come tax time, you might be very happy to whip out your credit card statements and see a clear record of all the purchases (however few they may be) you made for your business during the previous year.

Consider whether you can use credit card perks

Many business credit cards offer pretty sweet perks, like rewards geared specifically to business spending. Wouldn't it be nice to earn bonus cash back for paying your phone bill or buying office supplies? If you travel often for your business, you might consider opening a credit card that offers credits to pay for airport security programs like TSA PreCheck, or access to the cushy airport lounge of your dreams.

Some business credit cards also have nice sign-up bonuses, so if you know you've got an expensive quarter coming up, it might be a good time to open an account. You can roll the money from the sign-up bonus right back into your business.

Consider the future

Another good reason to open a business credit card is to give your venture the opportunity to build credit. These cards report to business-specific credit scoring bureaus, so much like using your personal credit cards in a responsible way can help you build credit, using a business credit card will help your business with its credit score. And if you're dreaming of someday expanding your business or adding a new income stream that will require an upfront investment, it'll be easier to qualify for a business loan with better credit.

A business credit card can certainly make your life easier, and the best ones come with some great benefits for business owners. If you've never thought about opening an account just for your business venture, it pays to consider it.