May 2026
WalletHub recently published insight from Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, cautioning new business owners against relying on business credit cards, particularly rewards cards.
While rewards programs are heavily marketed, Zagorsky argues that the high interest rates and personal liability attached to many business cards can create significant financial risk for entrepreneurs. Given the high failure rate of small businesses, he advises owners to use business credit cards only if they can consistently pay off balances in full each month; otherwise, traditional payment methods may be the safer option.
His overall message is that preserving cash flow and minimizing financial risk should take priority over earning credit card rewards.
