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As small business owners, you need to be strategic about the way you use and manage your credit. With so many options available, it can be difficult to know which cards offer the best terms and welcome offers (things like bonus cash and bonus points) for your business spending habits.
You can get a credit card for your new business regardless of your entity type – sole proprietors are eligible, as are corporations. Some freelancers and gig workers (such as rideshare drivers) with variable income may find it more difficult to open a business credit card account, but itâs not out of the question (terms apply).
To help you make the best decision for your business or startup, we’ve compiled a list of the ten best small business credit cards of 2022.
Differences Between Personal and Business Credit Cards
When it comes to credit cards, there are two main types: business and personal. While they both offer many of the same features, there are some key differences that cardholders should be aware of.
Business credit cards usually come with higher spending limits than personal cards. This can be helpful if you need to make large purchases for your business.
Small business credit cards also often offer rewards and perks specifically tailored to businesses, such as cashback on business-related expenses.
Finally, business credit cards typically require the cardholder to have a good to excellent personal credit score in order to qualify.
How to Qualify for the Best Business Credit Cards
When you’re looking for the best business credit card, it’s important to first make sure you qualify for the card. If your business is well-established, you can use your business credit score and employer identification number to apply for a business charge card. If your business is new, youâll need to provide your personal information to guarantee the card. In order to do this, you will need to provide your social security number, and you will need to have good to excellent credit. This means having a personal credit score of 700 or higher at the credit bureaus. If you have a poor credit history or your score is below 700, you may still be able to qualify for some of the best business credit cards, but you may have to pay a higher interest rate and may not qualify for a low APR offer.
Some cards offer special rewards for elite status members. These additional rewards may include travel perks such as access to airport lounges, tickets to special events, or extended warranties on purchases. To qualify for elite status, you need to make significant purchases throughout the year and have a history of timely payments.
Important Features for Business Credit Cards
Once you know that you qualify for the best business credit cards, it’s time to start looking at all of your options. There are a few different factors that you’ll want to consider when comparing cards.
The annual fee is the amount of money that you’ll be charged each calendar year to keep your account open on your account anniversary. While some business credit cards don’t have an annual fee, others can charge up to $500 per year. It’s important to consider the annual fee when comparing cards, as it can impact the overall cost of using the card. Sometimes that fee will be waived for your first year, but if your plan is to ditch the card after that, make sure you check the cancellation policy to make sure you can get a refund if you miss the renewal date.
Many business credit cards offer a rewards program that allows you to earn points or cash back on your business purchases. If you often travel or make a lot of business-related purchases, this can be a great way to save money. Some corporate cards offer special promotions that allow you to earn additional rewards on certain purchases, for example, if you get 1x points on normal purchases, you may receive a promotion for 4x points when purchasing United flights if you have a United Airlines business rewards card, or at least free upgrades like an additional checked bag. Itâs also common to see U.S. gas stations provide rewards and incentives that may be especially valuable for companies in the transportation industry, or who have employees who travel by company car frequently.
Many small business credit cards offer a welcome bonus to new cardholders. You may receive regular mailings from credit card issuers promoting their credit card offers. This is typically a large number of points or cash back that you can earn after meeting a minimum spending requirement within the first few months of card membership. Itâs smart to do a quick Google search when considering opening up a new small business card, as sign-up bonuses change frequently, and you may be able to find a great offer using this methodology.
If you need to finance a large purchase, look for a business credit card that offers a 0% introductory APR promotion on account opening. This will allow you to finance your purchase interest-free for a set period of time, which can save you a lot of money in the long run.
Most business cards will allow you to get additional cards for your employees. Youâll want to make sure that the card allows enough sub-cards to meet your business needs and that you can set individual limits for each card. Having employees use a business card can be a useful expense management tool. If you need cards for your employees, make sure that the card you select offers free employee cards.
When picking a card, each card will have its own criteria for setting credit limits, and the criteria can vary significantly depending on the credit card issuer. You may need to look at several cards before finding one that will meet your financing needs.
Foreign Transactions Fees
If your business frequently takes you overseas, youâll want to evaluate the foreign transaction fees charged on your credit. Some cards waive all foreign transaction fees, while others charge 1-3% of each transaction.
10 Best Credit Cards for Businesses
Weâve collected 10 of the best business credit cards available as of July 2022 (listed in no particular order). Note that the terms and conditions are current as of the publishing of this article but are subject to change without notice. Additional terms may apply, so make sure to review the credit card disclosures before establishing a business credit card account.
1. Capital One Spark Cash for Business
If you’re looking for a business credit card with no annual fee and great cash back rewards, the Capital One Spark Cash for Business is a good option. You’ll earn 2% cash back on all your purchases, with no limit to the amount you can earn. There’s also a sign-up bonus of $500 in the first year when you spend $4,500 in the first three months.
2. American Express Blue Business Cash Card
The American Express Blue Business Cash Card is a good option for small businesses who want to earn cash back on their everyday purchases. You’ll earn 2% cash back on the first $50,000 you spend each calendar year and 1% cash back on all eligible purchases after that. There’s also a 0% intro APR for 12 months on purchases and balance transfers, which can help you save on interest if you need to carry a balance.
3. Chase Ink Business Cash Credit Card
The Chase Ink Business Cash Credit Card is a good choice for small business owners who want to earn cash back on their business expenses. You’ll earn 5% cash back on the first $25,000 you spend each year in office supply stores and on cellular phone, landline, internet, and cable TV services. You’ll also earn 2% cash back on the first $25,000 you spend each year in certain spending categories including gas stations and restaurants. There’s no annual fee for this card, and you’ll get a 0% intro APR for 12 months on purchases and balance transfers.
4. Capital One Spark Miles for Business
If you’re looking for a business credit card with great business travel rewards, the Capital One Spark Miles for Business is a good choice. You’ll earn 2 miles per dollar on all of your business purchases, with no limit to the amount you can earn. There’s also a sign-up bonus of 50,000 miles when you spend $4,500 in the first three months. You can redeem your miles for travel expenses like flights, hotels, and rental cars.
5. Navy Federal Credit Union Platinum Mastercard
To qualify for the Navy Federal Credit Union card, you must have some connection to the military (either directly or through a family member). If you have access, they offer an attractive business credit card that has a low intro APR on balance transfers and purchases. The card has no annual fees, no foreign transaction fees, and a lower interest rate than other credit cards.
6. Chase Ink Business Preferred Credit Card
The Chase Ink Business Preferred Credit Card is a good choice for business owners who want to earn rewards on their business expenses. You’ll earn 3 Chase Ultimate Rewards points per dollar on the first $150,000 you spend each year in combined purchases on travel, shipping expenses, internet, cable, and phone services, and advertising with social media sites and search engines. You’ll also earn 1 point per dollar on all other purchases. You can redeem your points for travel expenses, cash back, gift cards, and more. There’s also a 0% intro APR for 12 months on business purchases and balance transfers
7. Capital One Venture Rewards Credit Card
If you’re looking for a business credit card with great travel rewards, the Capital One Venture Rewards Credit Card is another good choice. You’ll earn 2 miles per dollar on all of your purchases, with no limit to the amount you can earn. You can redeem your miles for travel expenses like flights, hotels, and rental cars. There’s also a sign-up bonus of 50,000 miles when you spend $3,000 in the first three months.
8. American Express Business Platinum Card
The Business Platinum Card is a good option for business owners who want to earn rewards on their business expenses. You’ll earn 5 Membership Reward points per dollar on the first $5,000 you spend each month in combined purchases in the bonus categories which include airfare, hotels, and rental cars. You’ll also earn 1 point per dollar on all other purchases. You can redeem your points for business travel expenses, cash back, gift cards, and more. There’s also a 0% intro APR for 12 months on purchases and balance transfers.
9. Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is a good choice for business owners who want to earn reward points on their business expenses. You’ll earn 2 points per dollar on all of your purchases, with no limit to the amount you can earn. You can redeem your points for travel expenses, cash back, gift cards, and more. There’s also a sign-up bonus of 60,000 points when you spend $4,000 in the first three months.
10. U.S Bank Business Triple Cash Rewards
The U.S. Bank Business Triple Cash Rewards card is a good choice for business owners who want to earn rewards on their business expenses. You’ll earn 3% cash back on all of your purchases at gas stations, office supply stores, cell phones, and restaurants in the billing cycles, and youâll earn 1% on all other spending categories. If these categories align with your spending, this card would be an excellent choice. You can redeem your cash back for statement credits. This card has no annual fee and offers an introductory $500 reward if you make enough qualifying purchases.
Alternatives to Getting a Business Credit Card
When you are running a business, it is important to have access to capital in order to make investments and manage cash flow. A business credit card can be a helpful tool in this regard, providing a source of financing that can be used for business expenses. The rewards program may offer an additional incentive to use a business credit card.
However, there are also some alternatives to getting a business credit card that you may want to consider. One option is to get a business line of credit or a working capital loan from small business lenders. This can provide you with flexibility in terms of how much money you borrow and when you repay it. Another alternative is to use personal credit cards for business expenses. This can be helpful if you already have good creditworthiness and can manage your finances carefully. Whichever option you choose, be sure to shop around and compare interest rates and fees before making a decision.
If youâre business financings needs cannot be met by a business credit, the business financing experts at Biz2Credit.com can help you navigate the financing process from your initial application through funding. When Danny Star needed additional funds to take his marketing agency to the next level, he turned to Biz2Credit and secure a working capital loan.