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10 Best Business Credit Cards of November 2023

what is business credit cards

Just remember that choosing a business credit card often depends on the structure of your business, and whether you’re brand new or established. It’s a good idea to research the terms and conditions as well as the features of each card to determine which one will be most beneficial to your business. Business credit cards can be a helpful way to kickstart growth by providing access to credit. This credit may allow you to invest in the systems, equipment and people you need to in order to reach your business goals. This card may not offer lounge access, but you will get a status boost which makes it easier to attain Medallion Status.

If you’re using the card to finance purchases, you should prioritize getting a low APR over rewards or benefits. If your business requires frequent travel, a business travel credit card is a great way to not only offset travel expenses but also take advantage of perks like lounge access and travel insurance. You what is business credit cards can often increase the value of the points you earn on these cards even more by redeeming them through issuer membership programs. A business credit card helps small-business owners keep track of their credit card spending. It allows a business to free up its cash flow while purchasing necessities via credit.

Disadvantages of a business credit card

These benefits may be different from the ones offered to individual customers. For example, some business credit cards provide cash back on purchases at stores that businesses are likely to frequent, such as office supply stores. Business credit cards also tend to offer larger sign-up bonuses than individual credit cards, in anticipation of high business spending. Many also will offer 0% interest as an introductory rate for a short period of time.

  • Then that business can open vendor accounts (accounts with suppliers, for example) that report payment history to business credit bureaus.
  • Aside from earning valuable rewards such as airline miles and cash back, the best business credit cards come with a variety of benefits that help you better organize your business finances.
  • When it comes to making the most of business transactions, using a business credit card can be a rewarding strategy.
  • No, this is not a commercial, it’s the single most important rule that should stop you from running into any issues with credit and interest.
  • A business credit card can be a helpful way to finance the growth of your business through access to credit and the potential to earn rewards.
  • If you want a similar card but prefer cash back to points, consider The American Express Blue Business Cash™ Card (Terms apply).
  • If you’re just starting out, paying an annual fee on your business credit card might not make the most sense.

It helps to know your credit score before applying for a business credit card since it will have to match the requirements of the card you want to get. But some, like the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card, will require excellent credit. The Ink Business Cash Credit Card offers the best business credit card for startups, new businesses, and many other business owners. Charge cards have no credit limits, but you’ll need to pay them off in full every month or face stiff penalties. They’re best for businesses with robust cash flow that want to maximize rewards.

Compare offers from the top business lenders through Fundera

But the card is a standout for luxury travel perks, and it comes packed with credits and benefits that make it well worth the cost. Businesses also receive a $300 statement credit after spending at least $3,000 in eligible net purchases within the first 90 days of account opening. Fans of Amex Membership Rewards will enjoy the Blue Business Plus Credit Card from American Express, which offers a flat 2 points per dollar rate on the first $50,000 in purchases per year (1 point per dollar afterwards). You can spend those points on all kinds of different purchases – and even transfer to one of many American Express travel partner programs. A business cardholder should call his or her card issuer to discuss payment options. In general, the easiest credit cards for a business to get require bad-to-fair credit for approval.

  • Typically, only well-qualified businesses will be able to get a high limit business credit card.
  • Additionally, while Discover doesn’t charge foreign transaction fees, it’s not widely accepted internationally, so you’ll want to have a Visa or Mastercard credit or debit card as a backup.
  • Eligible restaurant and travel spending gets you a 3% rate, and Costco warehouse and Costo.com purchases get you 2%.
  • Not only does this card offer rewards in common business spending categories, but you may also earn a sign-up bonus if you reach the spend minimum within a certain period of time.
  • If you run a small business or plan on starting a business, having a business credit card can help you streamline expenses, earn rewards and finance larger purchases.

Pay your balance in full each month by the due date, and you can avoid paying interest on your purchases. The American Express Blue Business Cash™ Card offers convenient, flexible credit limits, while the Capital One Spark Cash Select for Business simplifies things with flat-rate rewards. And if you just need an affordable card, the Wells Fargo Business Platinum Credit Card offers unbeatable APR.

Best Unsecured Cards of 2023

It depends on the card, but you will usually need an Employer Identification Number (EIN) to submit a business credit card application. Some applications may allow you to use your Social Security number instead, but some may ask for both numbers. If your business doesn’t yet have one, the good news is it’s free to apply for an EIN online with the IRS and the process is quick.

  • Those with a Business Advantage 360 account can also access their Dun & Bradstreet business credit score for free.
  • Issuers may report card activity to business credit bureaus, including Dun & Bradstreet, Experian Business Credit and Equifax Small Business.
  • The American Express Blue Business Cash™ Card offers convenient, flexible credit limits, while the Capital One Spark Cash Select for Business simplifies things with flat-rate rewards.
  • The best business credit cards offer valuable rewards, 0% intro APR financing and other benefits at a reasonable cost.
  • To earn the bonus, new cardholders must spend $8,000 in the first 3 months after opening an account.

That’s why we recommend this card specifically to businesses that do a lot of spending―because they’re the ones that will come out ahead. Then your business could do well with the American Express Business Gold Card. Chase’s Ink Business Preferred Credit Card has the best points rewards program for a business credit card. You do need a Costco membership ($60 a year) to get the Costco Anywhere Visa® Business Card by Citi, though the credit card itself has no annual fee.

Eligible restaurant and travel spending gets you a 3% rate, and Costco warehouse and Costo.com purchases get you 2%. So if you’re spending your money at Costco anyway, you might as well get that bonus cash back. Usually, these aren’t too important when applying for business credit cards since the liability is on you personally rather than your business.

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These are called 0% introductory APR offers for small businesses and could apply to purchases, balances transferred from another credit card or both. Once the introductory period ends, the balance on the card and future purchases will be charged a predetermined rate. Most business credit cards recommend having excellent credit to apply, but some issuers offer secured business credit cards for people with lower credit scores. Bank of America’s Business Advantage Unlimited Cash Rewards Secured credit card is one example. As your credit score increases with responsible card use, unsecured business cards that offer stronger rewards programs and better perks may be within reach.

Then, apply for the card online, wait for a decision and, if you’re approved, wait for your card in the mail. Despite the high annual fee, this is one of the best business travel credit cards. On top of the generous rewards and welcome offer, business travelers can access over 1,400 airport lounges worldwide with this card. Plus, cardholders may be able to earn enough statement credits to more than cover the annual fee.

what is business credit cards

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