12 Best Small Business Credit Cards Of April 2021

Best Small Business Credit Cards

Our July 2020 Small Business Poll uncovered a worrisome fact – 35% of American small-business decision-makers have tapped into personal funds to finance their businesses since the Coronavirus pandemic struck. That includes those who have dipped into a personal savings account (21%), used a personal credit card (24%) or both (10%). It varies from application to application, but here are some common required fields on business credit card applications.

Best Small Business Credit Cards

In order to get approved for a business credit card you need to be earning money independently, but don’t necessarily need to have a traditional “business” to get approved. The requirements for applying for a business credit card are more simple than they appear. Any income-producing hobby or activity may be considered a business when applying for the card, as long as it’s profitable. You would also earn an unlimited 1 percent cash back on eligible purchases outside the bonus categories. Some small businesses tend to shy away from cards that require an annual fee. This would be a mistake; if you want a business card, you can’t simply write off any card that requires an annual fee, as these charges are common practice for business cards.

1% 1% cash back on all eligible purchases after spending $50,000 per calendar year. The Business Platinum Card® from American Express is a top-notch card offering over a dozen premium perks for business owners. Whether it’s travel, purchase protection, rewards or expense management, there’s a benefit for every type of business owner.

Penfed Gold Visa® Card

However, keep in mind that not all business credit cards are made the same. At first glance, the Amex Blue Business Plus might seem like a better option, since it earns 2x points and doesn’t have an annual fee.

Best Small Business Credit Cards

offers one of the richest sign-up bonuses available on any credit card, anywhere, and it pays handsome rewards in a variety of categories. After the first year, you’d have to spend at least $2,534 before the rewards make up for the annual fee. This might not matter as much to you, though, if you deduct the fee as a business expense on your taxes. If your business’s budget includes enough expenses to earn it, the sign-up bonus is worth $1,250 if you redeem the points for travel booked through Chase.

Or if you’d rather earn points, you can choose the Rewards Points option in the program to earn one point for every $1 spent on purchases. But if you’re determined to find an unsecured credit card you can qualify for, the Capital One Spark Classic for Business might offer you a solution . If multiple contractors on your team regularly make purchases in your stead, consider using a prepaid business credit card. Since you load prepaid cards with your own funds, you can control the size of your line of credit, so you don’t need to worry about your staff going overboard on purchases. If you need some extra cash (and who doesn’t?), start your search with the Chase Ink Business Cash Credit Card. The best cash back rewards for this card apply to specific categories—like internet and cell service, restaurants, and gas stations—but you’ll receive 1% cash back on all purchases with no limit.

Click Here To Learn More About The Capital One Spark Miles For Business From Our Partner The Points Guy

This card awards 5x points on gas and 3x points at supermarkets which are among the highest rewards rates for these two categories. If your spending primarily falls into these categories, you can rack up points just on your everyday spending. You can earn 3% when you dine out, but unless you are a frequent diner, you’ll want to take a look at your other spending categories, which will adjusting entries likely only earn 1% cash back. This card offers a 0% intro APR for 6 months for purchases and 15 months for balance transfers, which is one of the longest durations you’ll find for a balance transfer introductory APR offer. You can earn 3% and 2% cash back on dining and grocery stores, which is at least double the rate you might earn with other cash back cards in these categories.

If you are not using the internet to help promote your business or advertise your products and services, your competitors will. This is where the Chase Ink Business Preferred credit card shines, providing a ton of value to you and your business. If you carry a balance from month to month, the interest you pay will cancel out any cash back you earn. If you cannot pay your balance in full each month, you might be better off with a card that has a lower APR but no rewards or perks.

In this way, your Bento card only gives you access to funds you already have, as you’ll connect Bento to your business bank account and transfer funds directly onto the card. This being said, if you need to improve your personal credit first and foremost, a securedpersonal credit card, like the Discover it Secured Card will likely be one of your top choices. With this in mind, the BBVA secured business credit card requires that you open a Secured Credit Card Savings account with a minimum opening deposit of $500.

  • Now, let’s check out another online lender offering business lines of credit.
  • A credit card for your business can be a very wise choice when you consider your bottom line.
  • They can use their respective credit cards and earn points toward statement credits, travel discounts or purchases, cash back, or online shopping.
  • Even if your side gig is small, it may still qualify for a business credit card because your personal credit will play a significant role in whether you get approved for a business credit card.

As you narrow down your choices based on your business’s needs, here’s how to evaluate and compare the features of different cards. If you plan on carrying balances from month to month, getting a card with a 0% APR period or low ongoing interest is more important than searching for generous rewards. Alternatively, if you plan on paying in full every month, a card with a big sign-up bonus and lucrative rewards could be a perfect fit. You’ll have to pay to see your company’s credit report and score at the major business credit bureaus. This would limit your personal financial liability for the account.

For instance, if you pay a $1,000 balance within 10 days of statement closing, your next statement includes a $15 credit. For rates and fees of the Hilton Honors American Express Business Card, please visit thisrates and fees page. For rates and fees of the Delta SkyMiles® Gold Business Credit Card from American Express, please visit this rates and fees page. For rates and fees of the Delta SkyMiles® Platinum Business American Express Card, please visit this rates and fees page. For rates and fees of the Delta SkyMiles® Reserve Business American Express Card, please visit this rates and fees page.

Most businesses look for low interest cards and/or build points or cash back rewards as an additional way to finance their growing business. Pay the balance each month to avoid higher interest costs, additional fees and provide room for unexpected expenses.

What Credit Score Do I Need To Get A Credit Card?

The best business credit cards for startups cater to businesses that are looking to establish business credit and cut costs. From there, I factored in annual travel credits, like the up to $200 annual airline credit offered by the Business Platinum Card from American Express. As the statement of retained earnings example Amex Business Platinum also offers various lounge access types through the American Express Global Lounge Collection, I assigned a value of $325 for these perks. What makes this card one of the best cash-back credit cards is that it earns an unlimited 2% cash back on every purchase.

One great benefit as a business owner is that employee cards on the account do not incur another annual fee like some premium business credit cards. Lastly, you get purchase security and extended warranty protection on eligible purchases with this card. The best small-business credit cards are designed to help companies big and small benefit from everyday spending. Generous rewards programs, expense tracking and features that boost the bottom line can benefit nearly every type of small-business owner, from the occasional freelancer to those with brick and mortar storefronts. While some business cards offer a flat rewards rate on all purchases, others are designed to reward common types of business purchases, like internet services or travel, at a higher rate. The other major differentiator is redemption style — most business credit cards allow you to exchange rewards earnings for either airline miles or cash back. When choosing the best credit card for your small business, it depends on spending habits, rewards preference, and a number of other factors.

Plus the card gives you 25% more value for the points you earn when you redeem them for travel at a fixed value in the Ultimate Rewards portal, a perk also available on other Chase credit cards. If you’d rather avoid a personal guarantee, one option is the Brex Corporate Card for Startups. Not only is no personal guarantee required to be approved for the card, you don’t even need to go through a personal credit check. Instead, you supply your Best Small Business Credit Cards EIN and link your corporate bank account to the card as a security deposit (you’ll need at least $100,000 in your corporate account to qualify for the card). Brex then sets credit limits dynamically based on the amount of capital you’ve raised, equity in your company and your company’s spending patterns. This means if you stop making payments on the card because the business fails, the bank can come after you personally to recover the debt.

Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening. For most business credit card issuers, employee cards can be added at no additional cost. Plus, they can earn up to $150 back in statement credits QuickBooks on eligible purchases made on their new card within the first 3 months of card membership. You can also add employees as authorized users on your business credit account as well. Sometimes there is a fee associated, but oftentimes they are free to add.

Only do this if it’s necessary, and if taking the time to save up for the one-off purchase would cost your business more in the long run. Then, budget carefully to ensure you can pay off the balance in full before your APR goes up. If you have an EIN but don’t have a credit file associated with it, the credit issuer will simply pull credit based on your social security number. Receive 1 Free Night Award each year after your Card account anniversary you can use at a participating hotel. Get 50% more Membership Rewards points on each eligible purchase of $5,000 or more.

Best Small Business Credit Cards

Marriott’s broad portfolio of hotel brands gives you maximum flexibility in earning and redeeming rewards. After you spend $150,000 on your Card in a calendar year, you earn 1.5 Miles per dollar (that’s an extra half mile per dollar) on eligible purchases the rest of the year. If your purchase qualifies for a category that has a higher mileage accelerator, only the higher accelerator will apply. With Status Boost®, earn 15,000 Medallion® Qualification Miles after you spend $30,000 in purchases on your card in a calendar year, up to 4x per year getting you closer to Medallion Status. Plus, throughout 2021 earn an additional 3,750 MQMs after making $30,000 in purchases, up to 4x.

This includes things like limits on fees and rules about when the issuer can change the interest rate. If earning big rewards is your goal, start by looking at your costs. For businesses that spend plenty on travel and office supplies, a card that gives bonus rewards in those categories would be an excellent choice. And for companies with spending that doesn’t fit into the usual categories, a flat-rate rewards card would fit the bill. doesn’t require the cardholder to personally guarantee the debt on the card.

You’ll earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year; 1 point per $1 on all other purchases – with no limit to the amount you can earn. Furthermore, points are worth 25% more when you redeem for travel through Chase Ultimate Rewards. Combined with an Ink Preferred, you’ll get a guaranteed 1.5-3 points per dollar spent. Business Platinum card holders also get up to $200 of annual statement credits to use when shopping at Dell and $200 in airline fee credits each calendar year, essentially rebating part of the annual fee.

Read more about the free Stripe Corporate Card’s cashback rewards. You can establish a maximum credit line of $100,000 with Fundbox, so larger businesses might find Kabbage’s lines of credit more fitting of their needs.

Secured Vs Unsecured Credit Cards

Her work has also appeared in Marie Claire, Teen Vogue, and Cosmopolitan magazines. That said, it’s important to know that the Bento can’t help you build credit, since you’re not paying bills to a card issuer every month.

In this case, “US office supply stores” is considered the purchase or reward category. Small businesses considering their options should, therefore, pay attention to the benefits a card features, as these can be valuable perks that employees may also enjoy. For example, the Spark Miles for Business card from Capital One wasn’t always as sought after as it is now. Prior to November 2018, cardholders couldn’t transfer their miles to travel partners like airline frequent flyer programs, which limited its value.

If we’re focusing on small to mid-size businesses (which are the vast majority of businesses in the U.S.), truth be told there is little difference between the two. A small business credit card functions much the same as a personal credit card and the application process is similar. You are almost certainly going to have to give your personal information and personally guarantee the card if you aren’t a publicly traded company.

Not the best, but….each card holder gets those points rather than the account holder. The boss lets each card holder use the points they earned and keep the rewards. My experience w business card is that rewards are usually pooled to the account holder. If you’re trying to keep costs to a minimum, for example, you might select a rewards-earning business card with no annual fee such as Ink Business Cash card. There is no one best credit card for every business because benefits, rewards, and the value the business card adds to your business will vary. Opening a business credit card is a positive step that supports the future growth of your business, and you do not need to have a large business to qualify.

Leave a Reply