Are the rewards on your business credit card worth the fees?
Sometimes paying more for a business credit card that has reward points can be worth the higher fees, but it’s not the case all the time.
Usually, if you spend enough each month and actually redeem the points for flights. Otherwise, no.
Bestfor consistent, higher spenders who redeem points for flights (far better value than gift cards or cashback).- Below a certain spend, or if points sit unused, a low-fee no-rewards card usually costs less overall.
- Either way, cards suit short-term spend you can pay off monthly. You hold onto cash for the interest-free period, sometimes up to 55 days.
Rewards effectively give you a percentage discount on anything you buy with the card. That said, you'll need to carefully consider how much you're spending on the card, and whether you'll actually use the points.
You may want to explore your no-rewards, low-fee options if any of these apply to you:
1. You don’t spend much per month
Rewards tend to become "worth it" once your spend passes a certain monthly threshold, but exactly where that threshold sits depends on your card's earn rate (commonly 0.5–2.25 points per dollar, depending on the card and program) and how you redeem the points, which can range from around 0.5c per point (gift cards, merchandise) up to 2–8c per point (flight redemptions, particularly business class). Because that range is wide, it's worth working through the math with your own card rather than assuming a fixed figure.
How the numbers stack up
Note: this uses stated assumptions rather than a specific card or program.
Assuming a card earning 1 point per dollar and a typical flight-redemption value of 1–1.5 cents per point:
- $1,000/month in spend (12,000 points/year) could generate roughly $120–$180 in value — enough to offset many standard annual fees.
- $5,000/month in spend (60,000 points/year) could generate roughly $600–$900 in value — comfortably clearing even a premium annual fee, provided the points are actually redeemed for flights rather than left unused.
Your card's real earn rate and your chosen redemption will move these numbers meaningfully in either direction, so treat this as a way to sanity-check your own numbers, not a guarantee. If you're spending well below the low end of this range, you likely won't recoup the annual fee through points alone.
2. You won’t use your points for flying
Frequent Flyer points have the best redemption value. If you don’t fly enough to bother with Frequent Flyer points, it will be much harder to spend enough on the card to justify the higher annual fee of a rewards card.
3. You won’t actually redeem the points
Points are useless if they just sit in your account. They'll also lose value over time: points inflation can be quite unpredictable and major airlines regularly increase the number of points required to fly the same routes.
If a rewards card isn't right for you
If you've worked through the above and a rewards card doesn't suit your spend, it's worth reflecting on what you actually need the credit for.
A card mainly solves for short-term, day-to-day purchases you can pay off monthly. If what you're really after is more flexible access to funds for cash flow gaps, larger purchases, or a longer runway than a card's interest-free period gives you, it's worth comparing:
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