How to find the right business credit card for you
Business credit cards aren’t one-size-fits-all
Depending on your business, you may benefit from one card more than another.
Learn the difference between business credit card rewards.
Decide: what are your business priorities?
If you own a small business, opening a business credit card is essential. You’ll be able to keep your business expenses under a separate account, which makes tax season a whole lot easier. What’s more, business credit cards usually come with higher limits and a few perks. These credit cards offer many rewards, depending on which card you go with.
Here’s how to find the right business credit card for your operation.
What kind of card does your business need?
The most important factor in finding a business credit card is understanding what kind of rewards your business needs. If you don’t like to keep track of special earning categories, but you travel a lot for your business, you may want to invest in a travel business credit card.
One option is the Business Platinum Card from American Express. Cardholders will earn five times points on flights and prepaid hotels on amextravel.com and 1 point per $1 spent on all other purchases. Other travel perks from this card include free Global Entry or TSA Precheck, lounge access at hundreds of airports, and complimentary gold status with Hilton and Marriott hotels. This card carries a hefty $595 annual fee.
The most important factor in finding a business credit card is understanding what kind of rewards your business needs.
Finally, if your business is just getting started, you may want a more straightforward business credit card. The Ink Business Cash Credit Card from Chase is a great introductory business credit card. This card offers 0% APR for 12 months, $0 annual fee, and a $500 sign up bonus for spending $3,000 on purchases in the first three months the account is open.
Rewards include 5% cashback at office supply stores as well as on internet, cable, and phone services and 2% on gas stations and restaurants, with some limits. Earn an unlimited 1% back on everything else.
Know your benefits
Many business credit cards offer a variety of rewards. Finding the right rewards for your spending and business is key.
For instance, the Spark Cash from Capital One business credit card offers 2% cashback on all purchases. This means you can funnel 2% of all your transactions back into the business, which can quickly add up depending on how much you spend. New cardholders benefit from a $500 cash bonus after spending $4,500 on purchases in the first three months the account is open. You won’t pay an annual fee the first year, and you’ll pay $95 after that.
A great option for high cashback rates for special categories is the Chase Ink Business Preferred Card. This business credit card earns 3 points for every $1 spent up to $150,000 on travel, shipping, internet, cable, phone, and digital advertising purchases. All other purchases earn 1 point per dollar spent.
New Chase Ink Business Preferred cardholders can earn 80,000 – or $1,000 in travel rewards – after spending $5,000 on purchases in the first three months the account is open. The business credit card does not charge foreign transaction fees and comes with a $95 annual fee.
Now that you know what kind of business credit cards are on the market, it should be much easier to determine which is the right one for you.
A deeper dive — Related reading from the 101:
Propel your business to new heights with an impressive business credit score
A helpful guide in getting your dream idea started
Simple tips to help your business prosper