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Best Small Business Credit Cards in October 2020

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Small business credit cards not only make it easier to separate personal and business finances, they offer business owners advantages they may not need or be able to get with a personal credit card.

However, you might find the number of business credit card options overwhelming, so identifying your priorities will help you choose.

For example, are you interested in rewards, or do you merely need a card for short-term financing? The best small business credit card for you will depend entirely on your needs and goals.

Best small business credit cards for financing

0% intro APR financing

When to consider business cards with intro 0% financing: A business card with an intro 0% APR period can save you hundreds of dollars on interest charges. During the intro period, new purchases won’t accrue interest, and you can break down an expensive one-time cost into smaller payments.

The Blue Business® Plus Credit Card from American Express

The information related to The Blue Business® Plus Credit Card from American Express has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

The Blue Business® Plus Credit Card from American Express

Regular Purchase APR
13.24% - 19.24% Variable
Intro Purchase APR
0% on purchases for 12 months from date of account opening
Annual fee
No annual fee
Rewards Rate
Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
Credit required
good-credit
Excellent/Good

Why we like it: The Blue Business® Plus Credit Card from American Express offers small business owners the chance to finance new purchases with an intro period of 0% on purchases for 12 months from date of account opening; 13.24% - 19.24% variable APR after. Plus, you can earn rewards, receive purchase protection and get extended warranties — all with no annual fee.

What to watch out for: You can lose the intro APR if a penalty APR applies to your account for any reason, such as missing a payment. To avoid this, always pay your minimum amount due.

Low interest rate

When to consider business cards with low interest rates: The Platinum Plus® Mastercard® Business card has an APR range of 10.24% - 21.24% variable apr. The lower end of that range is a better interest rate than is offered by many competing business cards. If you find your business has to carry a balance from time to time, it can be beneficial to have a low interest credit card. But as a rule of thumb, try to pay your balance in full every month to avoid interest charges.

Why we like it: If you qualify for the lowest rate on the Platinum Plus® Mastercard® Business card and end up carrying a balance, you’ll be charged substantially less interest than other cards with high APRs. Although there are no rewards, new accounts can earn an $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.

What to watch out for: You may not qualify for the lowest rate because the APR varies is typically based on your personal or business’ creditworthiness.

Cash flow management

When to consider a business card for cash flow management: Some small businesses may not have a consistent cash flow, and that’s where a card with a flexible payment option comes in handy. You may be allowed to carry a balance interest free until your next statement if you make the minimum payment.

The Plum Card® from American Express

The information related to The Plum Card® from American Express has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

The Plum Card® from American Express

Regular Purchase APR
N/A
Annual fee
$0 introductory annual fee your first year, then $250.
Rewards Rate
Get a 1.5% discount when you pay early, with no cap on what you can earn back.
Credit required
good-credit
Excellent/Good

Why we like it: The Plum Card® from American Express has an uncommon payment option where as long as you pay the minimum due, you can pay your balance in up to 60 days without accruing interest (terms apply). This ‘grace period’ is uncharacteristic of business cards (and all cards in general), providing you with twice as much time as other cards do to pay off your statement without incurring interest charges. There are no rewards, but you can get a 1.5% discount when you pay early, with no cap on what you can earn back.

What to watch out for: To benefit from the extra-days-to-pay feature, make sure you pay your minimum due, or else you’ll miss out on the offer. Also, make sure this card is the best choice for your business because there’s a $0 introductory annual fee your first year, then $250.

Imperfect credit

When to consider a business card for imperfect credit: If you or your business has less-than-good credit, odds are you’ll not only have trouble qualifying for a credit card, but the terms you do qualify for won’t be ideal. However, you’re not out of luck — we found a card that considers small businesses with imperfect credit, and it has decent terms plus the foundation for you to improve your credit with responsible behavior.

Why we like it: The Capital One® Spark® Classic for Business is for business owners with fair/limited credit. Capital One considers fair/limited credit as someone who’s defaulted on a loan in the past five years or has limited credit history (holding credit for less than three years). So, you may have better odds qualifying for this card compared to the majority of business cards, which require good or excellent credit.

What to watch out for: Although this card states it’s for business owners with fair/limited credit, that does not guarantee you will be approved. As with any credit application, lenders look at a variety of credit factors.

Available for service members

When to consider business cards for service members: The following business credit cards are provided by credit unions for service members and have added perks, such as low interest rates, rewards, special offers and discounts. These cards require credit union membership, but you can typically qualify depending on where you live or work.

Navy Federal Credit Union Visa® Business Card

Navy Federal Credit Union Visa® Business Card

Regular Purchase APR
10.65% - 18.00% Variable
Annual fee
$0
Rewards Rate
Rewards up to 1% return on each dollar spent
Credit required
excellent-credit

Why we like it: The Navy Federal Credit Union Visa® Business Card has a $0 annual fee and provides an up to 15% discount on qualifying business purchases with Visa SavingsEdge®. You can receive discounts at restaurants, travel and shipping services, IT solutions and more at no additional cost. As a member of NFCU, you can also receive a discount on Geico auto insurance and access an Auto Buying Program where you can save on new and used cars — great if your business requires you and your employees to drive. Terms & limitations apply.

What to watch out for: The interest rate you receive depends on your creditworthiness, so you may not receive the lowest APR. Because membership is restricted, you’ll need to check to see how to qualify for membership with Navy Federal Credit Union.

Navy Federal Credit Union Mastercard® Business Card

Navy Federal Credit Union Mastercard® Business Card

Regular Purchase APR
10.65% - 18.00% Variable
Annual fee
$0
Rewards Rate
Rewards up to 1% return on each dollar spent
Credit required
excellent-credit

Why we like it: The Navy Federal Credit Union Mastercard® Business Card has the Mastercard Easy Savings® Program, which provides you with an up to 10% discount on a wide range of purchases including car rentals, gas purchases, products and services like Bing Ads and Monster, and more. This can simply save your business money on everyday purchases and the program is free. NFCU members have access to perks that suit businesses that require driving for work, like the ability to save on Geico auto insurance and access to an Auto Buying Program where you can receive savings on new and used vehicles. Terms & limitations apply.

What to watch out for: The APR varies based on your creditworthiness, so you may not qualify for the lowest rate. Again, membership is restricted.

RBFCU Business Select Mastercard® credit card

RBFCU Business Select Mastercard® credit card

Regular Purchase APR
11.65% - 18.00% Variable
Annual fee
$0
Rewards Rate
2% cash back on all purchases
Credit required
good-credit

Why we like it: The RBFCU Business Select Mastercard® credit card has a great cashback program with unlimited 2% cash back on all purchases. This flat rate is rare among business cards that tend to favor high rates only on select purchase categories. In addition to a cashback program, members of RBFCU can benefit from members-only pricing at select merchants like TurboTax® and Sprint® to save your business additional money. Terms apply.

What to watch out for: Not everyone will qualify for membership with RBFCU, so fill out this online form to check.

Best small business rewards credit cards

Travel perks

When to consider travel business cards: If you or your employees travel often, a travel rewards card can offer travel insurance, airline fee credits, free Wi-Fi access and other travel-related perks.

The Business Platinum® Card from American Express

The information related to The Business Platinum® Card from American Express has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

The Business Platinum® Card from American Express

Regular Purchase APR
N/A
Annual fee
$595
Rewards Rate
5X Membership Rewards® points on flights and prepaid hotels on amextravel.com. Get 50% more Membership Rewards® points. That's an extra half point per dollar, on each eligible purchase of $5,000 or more.
Credit required
good-credit
Excellent/Good

Welcome offer: Earn 75,000 Membership Rewards® points after you spend $15,000 on qualifying purchases within your first 3 months of Card Membership.

Why we like it: We looked at business cards that offered travel perks, and The Business Platinum Card® from American Express emerged as the best overall business travel card because of its extensive benefits for business owners, including rewards potential, welcome offer, and added benefits. You can take advantage of standout benefits like access to over 1,200 airport lounges, credit for Global Entry or TSA Precheck and an airline fee credit of up to $200. Terms apply. These benefits can save your business a substantial amount of money and make travel less of a hassle.

What to watch out for: There is a steep $595 annual fee. However, considering the value you receive, the annual fee may be worth it. For example, the airline fee credit and Global Entry fee credit are valued at $300, decreasing the effective annual fee in the year you use those credits.

Ink Business PreferredSM Credit Card

The information related to Ink Business PreferredSM Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Ink Business PreferredSM Credit Card

Regular Purchase APR
15.99%-20.99% Variable
Annual fee
$95
Rewards Rate
Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.
Credit required
excellent-credit

Excellent

Why we like it: The Ink Business Preferred℠ Credit Card allows you to increase the value of your points by 25% when you redeem for travel through Chase Ultimate Rewards®. This is a great way to boost the effective value of your points. Additional travel benefits include trip cancellation/trip interruption insurance and travel and emergency assistance services.

What to watch out for: The higher rewards rate only applies to select categories, so if you primarily spend outside the select categories, you’ll earn a subpar cashback rate. Consider other travel business cards that suit your spending more.

Capital One® Spark® Miles for Business

Why we like it: The Capital One® Spark® Miles for Business offers a hard-to-find flat-rate rewards program at 2 miles per $1 on every purchase, everywhere. This rate allows you and your employees to earn the same amount of miles on any purchase with no bonus categories or caps. You can easily redeem miles for travel, and there is no minimum redemption amount.

What to watch out for: This card comes with an annual fee at $0 intro for first year; $95 after that, and although it’s lower than most travel business cards, it may not be ideal for everyone. Keep in mind you will need to spend $4,750 a year (after year one) to recoup the fee.

Big intro bonuses

When to consider business cards with big intro bonuses: A large welcome bonus can be a simple way for business owners to earn extra rewards within the first few months of account opening — as long as you fulfill the requirements.

You can use the rewards you earn in a variety of ways, from travel to statement credits. Many cards that have big intro bonuses also have good rewards and benefits, providing long-term value in addition to the short-term reward.

Ink Business PreferredSM Credit Card

The information related to Ink Business PreferredSM Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Ink Business PreferredSM Credit Card

Regular Purchase APR
15.99%-20.99% Variable
Annual fee
$95
Rewards Rate
Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.
Credit required
excellent-credit

Excellent

Intro bonus: Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening..

What to watch out for: Make sure you spend the required amount in the stated time period. Also, you miss out on added value by redeeming points for things other than travel, so try to reserve those points for travel purchases.

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

The information related to CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

Regular Purchase APR
15.99% - 24.99% (Variable)
Annual fee
$99, waived for first 12 months
Rewards Rate
Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases. Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations
Sign-up bonus: Earn 65,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening.

Why we like it: The CitiBusiness®/ AAdvantage® Platinum Select® Mastercard® is one of few airline-specific business cards. This card has the largest limited-time offer that we’re aware of compared to competitors and a typical spending requirement. In addition, there are great benefits when you fly on American Airlines, such as in-flight discounts, first checked bag free and preferred boarding.

What to watch out for: This is an airline-specific card — if you don’t fly with American Airlines, you’ll miss out on some of the best benefits.

Cashback rewards

When to consider cashback business cards: Cash back is a simple and straightforward way for your business to offset the cost of purchases. You can easily redeem your cash back as a statement credit, which is a great way to reduce your bill (just remember that redemptions can’t be applied to minimum payments).

Capital One® Spark® Cash for Business

Why we like it: We looked at business credit cards offering cashback rewards and analyzed their rewards rates, fees and APRs, and among the group, The Capital One® Spark® Cash for Business rose to the top.

It has a standout cashback program earning you 2% cash back for your business on every purchase, everywhere. There are no bonus categories or caps — you’ll earn the same rate on every purchase. You can even make redeeming your rewards simple by setting up automatic redemption, great for businesses that don’t want to fuss with rewards.

What to watch out for: The annual fee is $0 intro for first year; $95 after that — so after year one, you will need to spend $4,750 a year to break even.

Capital One® Spark® Cash Select for Business

Why we like it: The Capital One® Spark® Cash Select for Business has a decent rewards rate for business owners who want to avoid an annual fee at 1.5% cash back on every purchase. This card is a good alternative to the Capital One® Spark® Cash for Business, offering all the same benefits plus a $0 annual fee.

What to watch out for: The cash back rate is below the ideal 2%, and you can do better with a higher flat-rate card or with bonus category cards. But be aware they may have an annual fee.

Hotel rewards

When to consider business cards with hotel rewards: Traveling for business can get costly, but hotel rewards cards can help save money on hotel stays and other expenses you may incur like meals. Whether you favor a specific hotel or often choose the best priced hotel, there are business cards for you that can earn you rewards and other money-saving discounts. In this section, we’ve highlighted a card with exceptional hotel rewards.

The Hilton Honors American Express Business Card

The information related to The Hilton Honors American Express Business Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

The Hilton Honors American Express Business Card

Regular Purchase APR
15.74% - 24.74% Variable
Annual fee
$95
Rewards Rate
12X at hotels and resorts in the Hilton portfolio, 6X on Select Business & Travel Purchases, 3X Everywhere Else. Terms & Limitations Apply.
Credit required
good-credit
Excellent/Good

Why we like it: The Hilton Honors American Express Business Card offers great benefits for business travelers who frequent hotels in the Hilton portfolio with a wide range of benefits including complimentary Hilton Honors Gold Status. This gives you an 80% bonus on Base Points, space-available room upgrades and more benefits that may make your stays more comfortable.

Other Hilton perks include a rewards program that allows you to earn Hilton Honors Bonus Points at a fast rate and Weekend Night Rewards (terms apply). In addition, you receive baggage and travel accident insurance, 10 free visits to over 1,000 Priority Pass airport lounges every year and the ability to connect your credit card transactions to Quickbooks®, among other things.

What to watch out for: You don’t want to carry a balance with this card because there is a 15.74% - 24.74% variable APR. But, if you pay in full and on time, this won’t be an issue.

Best category bonuses

When to consider business cards with category bonuses: If you spent a lot in particular purchase categories, credit cards with elevated rewards for those categories may be a great fit. For example, if you drive a lot for business, a card with gas rewards may be ideal. Below we list the business cards that offer the highest reward rates on dining, gas and office-supply spending

Dining & gas

Why we like it: The Sam's Club® Business Mastercard® offers a high 5% worldwide, including gas at Sam’s Club (on first $6,000 per year, then 1% after), 3% on dining and travel, 1% on other purchases at Sam’s Club® and wherever Mastercard®  is accepted. This rate is ideal for businesses that primarily spend on gas because you earn the highest rate on those purchases compared to other cards. Business owners who also often take out clients for meals may want to consider this card because of its cashback rate on dining purchases.

What to watch out for: You need to be a member of Sam’s Club to open this card, and as a business owner you may not have a need for a Sam’s Club membership. However, membership starts as low as $45 a year, and considering there’s no annual fee for this credit card, that’s a small amount.

Costco Anywhere Visa® Business Card by Citi

The information related to Costco Anywhere Visa® Business Card by Citi has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Costco Anywhere Visa® Business Card by Citi

Regular Purchase APR
15.24% (Variable)
Annual fee
$0
Rewards Rate
4% cash back on eligible gas*, 3% on eligible restaurants & travel, 2% at Costco & Costco.com, and 1% on all other purchases

Why we like it: The Costco Anywhere Visa® Business Card by Citi offers a tiered cashback program with 4% cash back on eligible gas*, 3% on eligible restaurants & travel, 2% at Costco & Costco.com, and 1% on all other purchases. This is a good rewards program for business owners with Costco memberships if you want to earn cash back in a wide range of categories.

What to watch out for: You need to be a Costco member to open this card, and membership starts at $60 per year.

Gas & office supply stores

Why we like it: The Bank of America Business Advantage Cash Rewards credit card has a $0 annual fee. Business owners can earn a decent cash back rate at both gas stations and office supply stores, making this card ideal if you often spend in these categories.

Earn 3% cash back on your choice of one of the following six categories: gas stations, office supply stores, travel, TV/telecom & wireless, computer services or business consulting services, and 2% cash back on dining (on the first $50,000 each calendar year, then 1%. Earn an unlimited 1% cash back on all other purchases.

What to watch out for: The gas cashback rate is lower than other business cards with gas as a category bonus.

Risks of using small business credit cards

While small business credit cards can provide a wide range of benefits for your company, they have drawbacks.

Here are some of the major risks:

Personal liability. As a business owner, you are solely responsible for all charges made on your account. That means if there are any unpaid balances on your account, whether from your spending or employee spending, you are liable.

Negative impact on you credit. If your account is in poor standing as a result of late payments, overdue balances, bankruptcy or other issues, the credit card issuer may report this information to the credit bureaus. As a result, your personal credit score may take a hit.

Not protected by the CARD Act. Business cards don’t receive the same consumer protections that personal credit cards receive with the CARD Act. The CARD Act requires credit card issuers to provide transparent terms as well as lower fees and interest rates for consumers. But, issuers of business cards don’t have to comply with those requirements. Therefore, a business card may have higher interest rates, more fees and confusing terms.

How to minimize the risks of business credit cards

Monitor employee spending. The ability to open employee cards is a great feature, but if you don’t stay on top of their charges, it can become risky. Some good practices include keeping records of all employees with card access, setting employee spending limits when available and monitoring your credit card statements. This way you can keep track of all spending made on your account and add limits when needed.

Avoid charging personal expenses. Use your business card the way it is intended to be used — exclusively for business purchases. Charging personal expenses makes managing your finances harder and complicates the use of your card.

Do not take out a cash advance. Cash advances are one of the most costly features of credit cards and are rarely a good choice because you’ll be hit with higher than normal interest rates and can rack up debt fast. As an alternative, check out small business loans.

Look at loans for long-term financing. Your business may need to borrow money for purchases like cars or other big-ticket items, and small business loans can be a great way to finance those purchases. Often with straightforward terms, loans can be a good alternative to charging purchases on your credit card. Compare small business loans here.

Do not try to bail out a failing business. If your business isn’t doing well, don’t take out a small business credit card with the hopes of bailing it out. Odds are you’ll only get into more debt and make the situation worse.

Best way to use credit cards for your business

Earn rewards. Almost all of the cards mentioned in this roundup provide rewards, allowing business owners to be benefit from typical business spending. You can use the rewards you earn in a variety of ways, like booking travel, applying cash back as statement credit to cover bills or redeeming them for gift cards for business expenses or employee incentives.

Manage cash flow. Business cards may provide expense-management tools so you can monitor spending and simplify everyday business transactions. You can use your card to automate business expenses like monthly phone bills or regular office-supply purchases.

Build business credit. Opening a small business credit card has the potential to build and improve your business credit. If you make on-time payments and use a relatively small amount of your available credit, your business’ credit can benefit greatly. Having a good business credit score can help you down the line if you plan on taking out a loan or other credit products.

Short-term borrowing. If your business plans on making purchases that can’t be paid immediately, some business credit cards offer 0% intro periods that are ideal for short-term borrowing and can be a better choice than a personal loan — when used responsibly. During the 0% intro period, you can carry a balance without incurring interest, and if you pay it off before the intro period ends, you can save on the interest that you would’ve incurred if you had taken out a loan.

The information related to Platinum Plus® Mastercard® Business card and Business Advantage Cash Rewards credit card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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The Best Options for Rebuilding Your Credit Score in 2020

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The Best Options for Rebuilding Your Credit Score

A strong credit score is a vital part of your overall financial health. But rebuilding a damaged (or non-existent) credit score can feel impossible. Don’t despair. There are plenty of avenues you can take in order to rehabilitate your credit score and it all begins with identifying your starting point.

How Bad is Your Bad Credit Score?

Before you start to panic about rehabilitating your bad credit score, let’s determine if it’s even bad. Where do you fall in the range of FICO® credit scores? Below you’ll find what your credit score is considered, with ranges from Experian.

  • Above 740: Excellent Credit
  • 670 – 739: Good Credit
  • 580 – 669: Fair Credit
  • Below 579: Bad Credit or No Credit Score/Thin File

Your credit score isn’t the only thing that will keep you from being approved for credit. These factors are common reasons for being declined.

  • Your debt-to-income ratio is above 50%
  • You have no credit score
  • You have been building up a lot of debt recently
  • You are unemployed

In order to focus on rehabilitating your credit score, you’ll need to start with getting a line of credit. This may sound impossible because you’re constantly getting declined. Fortunately, there are options tailored specifically for people looking to re-establish credit.

[Read more about bad credit scores here.]

Rehabilitating a Bad Credit Score (579 and under)

Get a Secured Card

You’ll use your own money as collateral by putting down a deposit, which is often about $150 – $250. Typically, the amount of your deposit will then be your credit limit. You should make one small purchase each month and then pay it off on time and in full. Once you prove you’re responsible, you may be able to get back your deposit and upgrade to a regular credit card.

Check out two of our favorite secured cards below, and more options for a secured credit card here.

The Discover it® Secured

Perhaps our favorite secured card, the Discover it® Secured, has numerous benefits for those looking to rebound from a bad credit score. There is a $200 minimum security deposit that will become your line of credit, which is typical of secured credit cards.  An additional perk is the rewards program (very rare for secured cards) that offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically. This card has another great feature: Discover will automatically review your account, starting at month eight, to see if your account is eligible to transition to an unsecured card. Discover will decide if you’re eligible based on a variety of credit factors, and if you are, you will receive notification and get your security deposit back.

The Capital One® Secured Mastercard®

The Capital One® Secured Mastercard® is another option for those who want to strengthen their credit score. This card offers a potentially lower minimum security deposit than other cards, starting as low as $49. Be aware the lower deposit is not guaranteed and you may be required to deposit $99 or $200. You can deposit more before your account opens and get a maximum credit limit of $1,000. There is a feature that will assist your transition from a secured to an unsecured card. Capital One automatically reviews your account for on time payments and will inform you if you’re eligible for an upgrade. However, there is no set time period when they will review your account — it depends on several credit activities. If you receive notification that you’re eligible, you will be refunded your security deposit and will receive an unsecured card.

Rebuilding from a Fair Credit Score (580 – 669)

Apply for a Store Credit Card

You might be used to checking out at a store and being asked if you’d like to open a credit card. While these credit cards come with really high interest rates and are great tools to tempt you into buying items you don’t need, there is a big perk to store credit cards: they’re more likely to approve people with low credit scores. Just be sure to only use the card to make one small purchase a month and then pay it off on time and in full. Unsubscribe to emails about deals and don’t even carry it around everyday in your wallet if you can’t resist the desire to spend. Read more here. 

Those unable to get a store credit card should apply for a secured card to build credit. With proper credit behavior, you can see your score rise and then you may qualify for a store card.

Here are our picks for two store credit cards:

The Walmart Rewards Card

Walmart Rewards Card

The information related to Walmart Rewards Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Walmart Rewards Card

Regular Purchase APR
26.99% variable
Annual fee
$0
Rewards Rate
5% back on purchases made at Walmart.com and on the Walmart app, 2% back on Walmart purchases in stores outside of the introductory offer, and 2% back at Walmart Fuel Stations.

The Walmart Rewards Card offers a great rewards rate. Earn 5% back on purchases made at Walmart.com and on the Walmart app, 2% back on Walmart purchases in stores outside of the introductory offer, and 2% back at Walmart Fuel Stations. The sign-up bonus has the potential to be an excellent value, too. Get 5% back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval. Just remember that your cashback rate on purchases in Walmart stores will go down after the intro offer ends, so after your first year with the card, make sure to do most of your shopping on Walmart.com or in the Walmart app to take advantage of the higher rate you get for shopping that way. Note that this is a store card, so you can’t use it outside the Walmart ecosystem.

The Target REDcard™ Credit Card

Target REDcard™ Credit Card

The information related to Target REDcard™ Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Target REDcard™ Credit Card

Regular Purchase APR
25.15% Variable
Annual fee
$0
Rewards Rate
5% at Target & Target.com

The Target REDcard™ Credit Card offers great perks that are sure to please frequent Target shoppers. You receive a discount of 5% at Target & Target.com off every eligible transaction. The discount automatically comes off your purchase — no redemption needed. Other benefits include free shipping on most items, early access to sales and exclusive extras like special items, offers, and 10% off coupon as a gift on your REDcard anniversary each year.* Recently, cardholders received early access to Black Friday deals. Reminder: This card can only be used at Target and on Target.com.

Check If You Pre-Qualify

If you’re on the higher end of the spectrum, you may want to consider checking to see if you’re pre-qualified for any cards. This may help minimize your chance of rejection upon applying because pre-qualification performs a soft pull on your credit. This doesn’t harm your credit score.

Your goal in this credit range should be to use no more than 20% of your total available credit. Pay your bills on time and in full. And keep pumping that positive information onto your credit report until you reach the 700+ category. 

Who You Need to Avoid

Access to credit and loans may come easier than you expect, but that should also be a danger sign. There are several lenders who are willing to provide lines of credits or loans to people with poor credit. These options are often very predatory. If you’re simply trying to rebuild your credit history and improve your credit score, then there is no need to take these offers.

Here are the options you need to avoid when trying to rebuild credit:

1. Payday and Title Loan Lenders – There is never a need to take out a payday or title loan if you’re trying to merely rebuild or establish credit history. Most of these lenders don’t report to the bureaus and you’ll likely end up in a painful vicious cycle of borrowing and being unable to pay it down.

[How to get out of the payday loan trap.]

2. First Premier – The bank claims to want to offer people a second chance when it comes to their finances, but its fee structure and fine print prove the exact opposite. First Premier charges you a processing fee of up to $95 just to apply for a credit card. Then it levies a $75 annual fee on the credit cards and most cards only come with a $300 limit. You’re paying $170 for a $300 credit line! The APR is a painful 36%. In year two the annual fee reduces to $45, but then you’re charged a monthly servicing fee of $6.25. And to top it all off, you’ll be charged a 25% fee if your credit limit is increased. Stay away from this card! Use the $170 it would take to open the card and get a secured card instead.

3. Credit One – Credit One does an excellent job of confusing consumers into thinking they’re applying for a Capital One card. The logos are eerily similar and easily confused.

Creditone

Capital one

While Credit One is not as predatory as First Premier or payday loans, there is really no need to be using one of its cards to rebuild your credit score. For starters, Credit One cards have annual fees that range from $0 to $75 for the first year, then $0-$99 in subsequent years. If you’re approved for a card with an annual fee, it will be deducted from your initial credit limit. For example, receiving a $300 credit limit and $75 annual fee means you’ll only have access to an initial $225 credit limit. In addition, there is a high 19.49% -25.49% Variable APR. Given the high annual fees, we recommend saving your money and using a secured card with no annual fee to begin rebuilding your credit score.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Best Cash Back Cards for Grocery Shopping in October 2020

This site may be compensated through a credit card partnership.

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Shopping for groceries can be a mundane experience. There are numerous aisles, thousands of items and long checkout lines to contend with. Then there’s one more blow: watching the dollars add up at the register.

But signing up for a solid cashback credit card can be a good way to earn a percentage of your grocery purchases back and take some of the sting out of that shopping trip.

Here are the best cashback cards for grocery shopping.

Blue Cash Everyday® Card from American Express

Blue Cash Everyday® Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply |  Rates & Fees

Blue Cash Everyday® Card from American Express

Intro Purchase APR
0% on purchases for 15 months
Intro BT APR
N/A
Regular Purchase APR
13.99%-23.99% Variable
Annual fee
$0
Rewards Rate
3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases.

The Blue Cash Everyday® Card from American Express, offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases. It comes with a $0 annual fee.

The Welcome Offer allows you to $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. This is a good way to maximize your rewards.

To see rates & fees for the Blue Cash Everyday® Card from American Express, please click here.

Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply |  Rates & Fees

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Blue Cash Preferred® Card from American Express

Regular Purchase APR
13.99%-23.99% Variable
Intro Purchase APR
0% on purchases for 12 months
Intro BT APR
N/A
Annual fee
$95
Rewards Rate
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions and 1% Cash Back on other purchases.
Balance Transfer Fee
N/A
Credit required
good-credit
Excellent/Good

The Blue Cash Preferred® Card from American Express offers the highest cashback rate for big grocery spenders — 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). This card does come with a $95 annual fee and you need to spend $1,584 a year on groceries to break even. If you spend $3,167 a year ($264 a month) or more on groceries you will benefit from this card more than the Blue Cash Everyday® Card from American Express. You’ll also earn a high 3% cash back at U.S. gas stations, 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more, and 1% back on other purchases. There’s an added Welcome Offer: $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

To see rates & fees for the Blue Cash Preferred® Card from American Express, please click here.

Amazon Prime Rewards Visa® Signature Card

Amazon Prime Rewards Visa® Signature Card

The information related to Amazon Prime Rewards Visa® Signature Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Amazon Prime Rewards Visa® Signature Card

Regular Purchase APR
14.24% to 22.24% Variable
Annual fee
$0
Rewards Rate
Earn 5% back at Amazon.com and Whole Foods Market with eligible Prime membership, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.

The Amazon Prime Rewards Visa® Signature Card grocery cashback program is geared toward Whole Foods Market shoppers. You’ll Earn 5% back at Amazon.com and Whole Foods Market with eligible Prime membership, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.. This is a great rate if you frequently shop at Whole Foods Market and easily rivals offers from competing cards. There is no annual fee, but you must have a Prime membership to get the 5% rate — currently, annual plans cost $119 or $59 for students.

Amazon Rewards Visa® Signature Card

Amazon Rewards Visa® Signature Card

The information related to Amazon Rewards Visa® Signature Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Amazon Rewards Visa® Signature Card

Regular Purchase APR
15.74% to 23.74% Variable
Annual fee
$0
Rewards Rate
Earn 3% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.

The Amazon Rewards Visa® Signature Card is similar to the Amazon Prime Rewards Visa® Signature Card, but doesn’t require a Prime membership. This card also has a $0 annual fee but offers a lower rate at Amazon.com and Whole Foods Market. Earn 3% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.

Bank of America® Cash Rewards Credit Card

The Bank of America® Cash Rewards Credit Card gives cardholders more flexibility when it comes to earning bonus rewards. The card lets you select one of six “choice” categories to earn 3% cash back in each month: gas, online shopping, dining, travel, drug stores or home improvement/furnishings. You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, 1% on all other purchases. The ability to change the bonus cashback category each month is unique since many cards only allow you to select new bonus categories every quarter, or don’t allow you to choose at all.

There is a $0 annual fee. As a Preferred Rewards member, you can earn 25-75% more cash back on every purchase, making your grocery cash back an effective 2.5-3.5%. If you apply online, you can earn a  $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

Huntington Voice Credit Card®

Huntington Voice Credit Card®

Huntington Voice Credit Card®

Regular Purchase APR
11.99% - 22.99% Variable
Annual fee
$0
Rewards Rate
3X points in one of 10 categories (capped at $2,000 each quarter or 6000 points), and all other purchases earn 1X points.

The Huntington Voice Credit Card® has a $0 annual fee and earns you 3X points in one of 10 categories (capped at $2,000 each quarter or 6000 points), and all other purchases earn 1X points. You also have the freedom to change your 3X category every quarter to suit your spending. But be aware that if you switch from grocery stores to another category, you’ll only earn 1X points on grocery spending. Points can be redeemed for cash and 1 point equals $0.01, therefore 5,000 points is equal to $50 cash rewards.

Which card is the right fit for me?

With numerous credit cards available to help maximize your grocery rewards, it can be confusing to know which to choose. Some cards provide unlimited rewards at a high rate, while most have caps on grocery spending.

The table below breaks down which grocery card may be a good fit for you when factoring in annual grocery spending, cashback rate and annual fee. (Sign-on bonuses are not reflected.) Keep in mind: This only factors in spending on grocery purchases and doesn’t consider if you spend in other categories or at the other cashback rates.

Here are a few key takeaways:

  • If you spend about $3,000 a year on groceries, you will benefit more from the Blue Cash Everyday® Card from American Express, Amazon Rewards Visa® Signature Card or the Huntington Voice Credit Card®.
  • If you spend around $4,000 – $7,000 a year, you will benefit more from the Blue Cash Preferred® Card from American Express.
  • If you spend on average $8,000 or more a year at Whole Foods Market, you will benefit more from the Amazon Prime Rewards Visa® Signature Card.
  • The Bank of America® Cash Rewards Credit Card earns you subpar cash back unless you have $100,000 in a Bank of America checking or savings account.
  

Card

Amazon Prime Rewards Visa® Signature Card

Amazon Rewards Visa® Signature Card

Huntington Voice Credit Card®

Blue Cash Everyday® Card from American Express

Blue Cash Preferred® Card from American Express

Bank of America® Cash Rewards Credit Card: without BofA checking/
savings

Bank of America® Cash Rewards Credit Card: with $100,000 in BofA checking/
savings

Spending

$1,000

-$69

$30

$30

$30

-$35

$20

$35

$2,000

$-19

$60

$60

$60

$25

$40

$70

$3,000

$31

$90

$90

$90

$85

$60

$105

$4,000

$81

$120

$120

$120

$145

$80

$140

$5,000

$131

$150

$150

$150

$205

$100

$175

$6,000

$181

$180

$180

$180

$265

$120

$210

$7,000

$231

$210

$210

$190

$275

$140

$245

$8,000

$281

$240

$240

$200

$285

$160

$280

$9,000

$331

$270

$250

$210

$295

$180

$315

$10,000

$381

$300

$260

$220

$305

$200

$350

*We included the $119 Prime membership fee into our calculations for the Amazon Prime Rewards Visa® Signature Card and the $95 annual fee for the Blue Cash Preferred® Card from American Express.

The information related to Bank of America® Cash Rewards Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.