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Q: I'm opening a small business. I won't be carrying a balance, so which business credit card is best for rewards?

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Added November 26, 2010 from: Beverly Blair Harzog
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 Beverly Blair Harzog
Answered By Beverly Blair Harzog: The CARD Act of 2009 offers protections for consumer credit cards, but not for business credit cards. As a result, the interest rates on business cards, which are also called professional cards, have increased. You also don't get protected from retroactive increases like you would on a consumer card. Since you won't be carrying a balance, these issues shouldn't affect you, but you should be aware of them in case your ability to pay off your balance every month changes.

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You don't specify the type of rewards you're looking for. If you fly frequently, consider the Capital One Venture SM for Business. You get 2 miles for every dollar spent on purchases. If you have employees, you receive 5,000 bonus miles by signing up at least one employee. There's a $59 annual fee that's waived for the first year. There's no annual fee for employee cards and you can set individual spending limits.

If you spend $1,000 within the first three months of opening your account, you get 10,000 bonus miles. You can fly any airline at any time. Or, you can redeem points for cash or merchandise. At the end of the year, you get an itemized report of your spending, which makes doing your taxes a lot easier.

If you prefer cash back rewards, check out the Ink Cash SM from Chase Business Card - $100 Bonus Cash Back Card. The first time you use the card, you get 10,000 bonus points, which is $100 cash back ($.01 cash back for every dollar spent). But you get 3 percent cash back on gas, dining, home improvement, hardware stores, and office supply items. Note that the retail establishments that qualify are restricted, so read the offer details on their website.

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