Written By
Alexandria White
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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 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.
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.
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 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.
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.
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.
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.
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 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.
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.
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.
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.
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.
Why we like it: The Ink Business Preferred℠ Credit Card has a high-value intro bonus and allows you to increase the value of your bonus by 25% when you redeem for travel through Chase Ultimate Rewards®. This card is also a good option for a business travel card.
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.
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
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
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 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.
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.
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.
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