Looking for the best business credit cards for your company? Check out our ultimate guide that will help you find the right fit for your business needs.
Introduction:
As a business owner, you need access to credit for various reasons such as paying suppliers, purchasing inventory, or handling unexpected expenses. A business credit card can help you manage your expenses and build your business credit history. However, with so many options available, finding the best business credit cards can be overwhelming.
In this blog, we will guide you through the process of selecting the best business credit card for your company. We will explore the features, benefits, and drawbacks of the top business credit cards available in the market. By the end of this guide, you will have a clear understanding of the best business credit cards for your company’s financial needs.
Features to Consider When Choosing the Best Business Credit Card:
Before diving into the best business credit cards in the market, it’s essential to know the features to consider when choosing a business credit card. Here are some factors you should keep in mind:
Rewards Programs:
Most business credit cards offer rewards programs such as cashback, points, or miles. These rewards can be redeemed for various perks such as travel, merchandise, or statement credits. Consider the rewards program that suits your business needs and spending habits. For example, if your business involves a lot of traveling, you might prefer a card that offers airline miles or hotel rewards.
Annual Fees:
Some business credit cards charge annual fees, while others do not. Consider the card’s annual fee and the benefits it offers. For example, a card with an annual fee may offer higher rewards and better perks than a no-fee card. However, if you do not plan to use the rewards or benefits, a no-fee card may be a better option.
Introductory Offers:
Many business credit cards offer introductory offers such as 0% APR for a limited time or bonus rewards for meeting spending requirements. Consider these offers when selecting a card, but be sure to read the fine print. For example, some offers may have a high-interest rate after the introductory period, or the spending requirement to receive the bonus rewards may be too high for your business needs.
Interest Rates:
If you plan to carry a balance on your business credit card, consider the card’s interest rate. Some cards offer low-interest rates, while others have higher rates. Be sure to read the terms and conditions to understand the interest rate and any fees associated with the card.
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Best Business Credit Cards in the Market:
Now that you know the features to consider when choosing the best business credit card let’s explore the top business credit cards in the market.
American Express Blue Business Cash™ Card:
The American Express Blue Business Cash™ Card is an excellent choice for small businesses that want to earn cashback rewards. Here are some of the benefits and drawbacks of this card:
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Benefits:
- 2% cashback on all eligible purchases up to $50,000 per calendar year, then 1%
- No annual fee
- Introductory 0% APR on purchases for the first 12 months, then a variable APR of 13.24% to 19.24%
- Employee cards at no additional cost
- Access to American Express business tools and resources
Drawbacks:
- Foreign transaction fee of 2.7%
- No bonus rewards or introductory offers
Overall, the American Express Blue Business Cash™ Card is an excellent option for small businesses that want a straightforward cashback program without an annual fee.
Capital One® Spark® Cash for Business:
The Capital One® Spark® Cash for Business is another top business credit card with attractive rewards and benefits. Here are some of the benefits and drawbacks of this card:
Benefits:
- Unlimited 2% cashback on all purchases
- $500 cash bonus when you spend $4,500 in the first 3 months of account opening
- No annual fee for the first year, then $95 per year
- Introductory 0% APR on purchases for the first 12 months, then a variable APR of 20.99%
- Employee cards at no additional cost
- Access to Capital One business tools and resources
Drawbacks:
- Foreign transaction fee of 3%
- High-interest rate after the introductory period
Overall, the Capital One® Spark® Cash for Business is an excellent option for businesses that want unlimited cashback rewards and a generous sign-up bonus.
Chase Ink Business Cash® Credit Card:
The Chase Ink Business Cash® Credit Card is a popular choice for small businesses with attractive rewards and benefits. Here are some of the benefits and drawbacks of this card:
Benefits:
- $750 bonus cashback when you spend $7,500 in the first 3 months of account opening
- 5% cashback on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year
- 2% cashback on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- No annual fee
- Introductory 0% APR on purchases for the first 12 months, then a variable APR of 13.24% to 19.24%
- Employee cards at no additional cost
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Drawbacks:
- Foreign transaction fee of 3%
- Limited redemption options for cashback rewards
Overall, the Chase Ink Business Cash® Credit Card is an excellent option for small businesses that want generous cashback rewards and a substantial sign-up bonus.
FAQs: Best Business Credit Card
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What is a Business Credit Card?
A business credit card is a credit card designed for business use. It allows businesses to make purchases, track expenses, and build credit.
How Do Business Credit Cards Work?
Business credit cards work similarly to personal credit cards. Businesses can use the card to make purchases, and the card issuer bills the business for the amount spent. The business can choose to pay the balance in full each month or carry a balance and pay interest.
Can Business Credit Cards Help Build Credit?
Yes, using a business credit card responsibly can help build your business’s credit history. By making on-time payments and keeping your credit utilization low, you can improve your business credit score.
Can Business Credit Cards Help Build Credit?
Yes, business credit cards can help to build your business’s credit history. When you use a business credit card responsibly, meaning that you make on-time payments and keep your balances low, it can demonstrate to credit reporting agencies that your business is a good credit risk.
Over time, this can help to establish and improve your business’s credit score, which can make it easier to access financing in the future.
It’s important to note that not all business credit cards report to credit bureaus, so you’ll want to check with the issuer before applying. Additionally, using a personal credit card for business expenses can also impact your personal credit score, so it’s generally better to use a separate business credit card to avoid any negative effects on your personal credit history.
What are the Advantages of Using a Business Credit Card?
Using a business credit card can offer several advantages to small business owners, including:
- Improved expense management: Business credit cards allow you to track and manage business expenses easily. They provide detailed statements, making it simple to categorize and track expenses. This can help you to stay organized and simplify your bookkeeping.
- Cash flow management: Business credit cards can help you to manage your cash flow by providing a revolving line of credit. This means that you can access funds when you need them and pay for expenses over time.
- Earn rewards: Many business credit cards offer rewards programs that allow you to earn cashback, points, or miles for purchases. These rewards can add up quickly and provide a significant benefit to your business.
- Build credit: Using a business credit card responsibly can help you to build your business’s credit history. This can make it easier to access financing in the future.
- Access to perks: Some business credit cards offer additional benefits and perks, such as travel insurance, purchase protection, and extended warranties. These benefits can provide additional value to your business and help to protect your investments.
Separation of business and personal expenses: Using a separate business credit card can help to keep your business and personal expenses separate, making it easier to track and manage your finances.
Overall, using a business credit card can provide several advantages to small business owners, from improved expense and cash flow management to earning rewards and building credit.
Can I Apply for a Business Credit Card with No Credit History?
Yes, it is possible to apply for a business credit card with no credit history, but it may be more difficult to get approved.
If you have no credit history, you may want to consider applying for a secured business credit card. These cards require a deposit that serves as collateral for your credit line. By making on-time payments and keeping your balances low, you can demonstrate your creditworthiness to the card issuer and eventually graduate to an unsecured business credit card.
You can also consider applying for a business credit card with a cosigner. A cosigner is someone who agrees to be responsible for the debt if you are unable to pay it. If you have a cosigner with a good credit history, it can improve your chances of getting approved for a business credit card.
Finally, some issuers may be willing to approve a business credit card application based on your personal credit history, especially if you have a strong credit score. In this case, you would be personally liable for any debt incurred on the card, so it’s important to use it responsibly and make payments on time to avoid any negative impact on your personal credit history.
Conclusion – Best Business Credit Cards
In conclusion, business credit cards can offer several benefits to small business owners, including improved expense and cash flow management, rewards programs, and access to perks and benefits. Additionally, using a business credit card responsibly can help to build your business’s credit history, making it easier to access financing in the future.
While it is possible to apply for a business credit card with no credit history, it may be more difficult to get approved. However, options such as secured cards or applying with a cosigner can help to increase your chances of approval.
When choosing a business credit card, it’s important to consider factors such as fees, interest rates, rewards programs, and other benefits. By choosing a card that aligns with your business’s needs and using it responsibly, you can maximize the benefits and build a strong credit history for your business.