Buying guide for Best small business credit cards
Starting your own business is daunting, so you want to be prepared to face every challenge. For this reason, having a small business credit card is essential. It’s a smart way to help yourself pay expenses and keep track of your spending.
What are the perks of getting a credit card for your business expenses? When used correctly, a small business credit card can enhance your business and help you save on costs. It may give you a significant credit limit that covers your monthly expenses, a low interest rate on purchases or a comprehensive rewards program.
We reviewed the best credit cards for small business owners and outlined what makes each an appealing option. Whether you want low interest rates or travel rewards, consider one of our top picks to help your business thrive.
Small business credit cards
The Chase Ink Business Cash Credit Card offers excellent reward rates and impressive perks and benefits. It has no annual fee, which makes it a cost-effective choice for people who own small businesses.
You can get 5% cash back on the first $25,000 you spend on the internet and on office supplies. Further, you can get 2% of your money back on the first $25,000 you spend on dining and gas stations and 1% cash back on all other purchases. We like the fact that there’s an introductory APR of 0% for the first year and then 18.49% - 24.49% Variable.
Racking up points is a breeze with this card since you can get additional cards at no extra cost for your employees. When your employees accumulate points for your business, you can plan on saving more in the long run.
Points can be redeemed for cash back credits, gift cards, travel and more through the Chase Unlimited Rewards portal. Earn $350 when you spend $3,000 on purchases in first 3 months, and an additional $400 when you spend $6,000 on purchases in first six months.
The Ink Business Unlimited Credit Card is a top choice for small business owners because of its welcome bonus, no annual fee and comprehensive rewards program.
This card is similar to the Ink Business Cash Credit Card, but there are a few crucial differences. For starters, you won’t get nearly the same point returns with this card. However, you’ll earn 1.5% on every purchase. Unlike the Ink Business Cash Credit Card with a limit of $25,000 – of which you can make high points returns – the Ink Business Unlimited Card has no limit.
Other than that, this card is nearly identical with similar terms and conditions. As with the Cash Credit Card, you’ll have 12 months of 0% APR on purchases, and you can qualify for a $750 bonus if you spend $6,000 in your first three months. Additional employee cards can help you save money, too.
The Chase Ink Business Preferred Credit Card is ideal for small business owners who want extra perks that can help them save money. Although it has a $95 annual fee, we think it’s worth it for several reasons.
For one, this card has the most substantial welcome bonus of any business credit card we’ve reviewed. You’ll earn 100,000 bonus points after spending $8,000 in your first three months, and you can enjoy a lower variable APR that fluctuates from 21.24% - 26.24%.
For each dollar of the first $150,000 you spend, you can get three points per year on shipping purchases, travel, internet, cable and phone services as well as advertising purchases with social media sites and search engines.
The intro bonus of 100,000 points is equivalent to $1,000 in cash or $1,250 toward travel when redeemed through Chase Travel(SM). With no limit, you also earn one point per spent dollar on other purchases.
The Capital One Spark Cash Select for Good Credit doesn’t offer the same comprehensive rewards program as other credit cards and lacks a sign-on incentive. However, it’s an excellent card for a first-time small business owner.
This card has no annual fee, and you get a 0% Intro APR for the first 12 months; 21.24% - 29.24% variable APR after that. If you frequently travel on business or have employees who do, you can earn 5% cash back on all hotel and car rental purchases booked through Capital One Travel. All other purchases will give you a 1.5% cash back return.
Additional employee credit cards are available upon request at no extra cost. In the hands of your employees, these cards can also earn 1.5% on all purchases for your business. Other benefits include fraud protection and AutoPay for automatic payments, so you don’t need to sign into your account every month.
What to know before choosing a small business credit card
What is the credit limit?
Running a business entails plenty of costs. Therefore, you may want a credit card with a substantial credit limit. However, you’ll also want to make sure you don’t go overboard with spending. Doing so could put your business in a financial hole that’s difficult to crawl out of, especially if the interest starts piling up.
Are rewards offered?
If you’re unsure which credit card would be best for your business, one way to narrow down your options is to consider your business needs and whether any card rewards correlate with those needs. For example, if your employees often travel, a card with a travel rewards program may be in your best interest. You can rack points or miles through their travel purchases and redeem them on future flights, hotel stays or car rentals.
If travel isn’t a primary concern for your business, a cash back credit card may be the way to go. The best cash back credit cards for small business owners have an attractive sign-on bonus that can help you immediately save costs. Look for one with a high points return, and make all business purchases with your card once you have it.
Does the card have a low introductory interest rate?
With some cards, you can get a low interest rate or a 0% interest rate that lasts a few months to a year. If you have a large purchase in your sight, using the card in this way could save you some money, as could transferring a high-interest credit card balance.
Why should I get a small business credit card?
Keep costs down
A small business credit card is helpful for small business owners who need to streamline their expenses. The best small business credit cards can help your business prosper by saving you money in the long run.
Cards with rewards programs are beneficial to business owners who make several large purchases periodically. Points accumulate and can be used toward flights, hotel stays and car rentals for employees or cash back credits.
Spending flexibility
Most small business owners experience ups and downs with their cash flow. While it can feel daunting to be low on cash, a small business credit card can be a lifesaver in this scenario. If you’re low on money, you can use the card to pay invoices and cover unexpected costs. However, it’s important to note that interest will accumulate if you don’t pay your monthly balance in full. So, even in a pinch, you want to be frugal with your credit card use.
FAQ
Q. Can I use a small business credit card for personal purchases?
A. Technically, yes. However, it makes tax filing convoluted and defeats the purpose of a small business credit card since you’ll want to have a card strictly for business purchases. That way, it’s easier to keep track of the money you spend on your business needs.
Q. Do I have to pay extra to get credit cards for my employees to use?
A. It’s unlikely that you’d have to pay more for extra copies of the card. If you have several employees who travel or make business purchases often, a small business credit card can offer you the chance to earn points every time they do so. Most credit card issuers will provide additional credit cards at your request, all with the same benefits as the one owned by the primary cardholder.
Q. Why do some cards have an annual fee?
A. Cards without an annual fee are great, but those with one usually have a more comprehensive rewards program and special perks and benefits.
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