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The best small business credit cards

5 minutes minutes read

Starting a business means that you will need money to make it work. Having cash or money available for you to cover your emergencies is key.

This is why having a credit card is important if you are a small business owner. It will allow you to cover your needs and access great rewards while having money available for emergencies. In this article you will learn about some credit cards for small business owners.

Do you need a business credit card?

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First of all, it is important to know that you must not mix your personal accounts with your business accounts. If you mix your personal and business account, you will end up having trouble organizing yourself when it is time to pay taxes.

The best way to use a business credit card is to cover short term needs, but never long term needs. In other words, you should use it for small needs, not big ones like financing a business.

Another perk of having separate business and personal accounts is that you are able to get quarterly credit reports for free. As you know, keeping track of your credit score is a great financial habit to have.

What to look for

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If you need a small business credit card, you should decide wisely which credit card you will get. Here are some things to look for:

  • Interest rates

The lower the interest rate, the better. Take a look at all your options. Some even have intro offers that include 0% interest rate. But be careful with these intro offers, missing a payment might take you into a large debt. 

  • Fees

Each lender might have different fees, including the annual fee. Some lenders offer credit cards that do not have an annual fee. If you are planning to pay your full balance every month, you should not worry about the annual fee.

  • Rewards

This topic is a “plus”, but when you are comparing various options, the rewards offered might make the difference. Look for a credit card that offers rewards that actually benefit you.

If you need to travel often, look for travel rewards, if you need to eat out because of work, look for those kinds of rewards.

Pros of getting this credit card

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  • Separate accounts

As mentioned earlier, having a business credit card will help you separate your business and personal accounts. This will help you when it’s time to file your taxes. The process will be easier if you keep your accounts separate.

  • Rewards and flexibility

First of all, a business credit card will allow you to make short-term payments, so that you have cash available for emergencies. You can also get rewards with some business credit cards out there.

The rewards can vary; they can be travel rewards, cashback or even redeemable points for business necessities.

 

Cons of getting this credit card

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  • Spending more than necessary

Credit cards are useful when you know how to utilize them. As we have said before, a business credit card can help you on short-term purchases. But it can be easy to lose track of what you are spending, particularly because you are using the company’s money.

When you lose track, you can start buying a lot of unnecessary items that you don’t need for your business. This can lead to an overspending spiral, which will leave you drowning in debt. 

  • Mixing accounts

We have seen that a great advantage of owning a business credit card is that you separate your personal and business accounts. As time goes by, it might happen that you use your business credit card for a personal purchase.

Be careful because this can lead to a major issue, where you will lose track of which expenses are personal and which are business.

Small business credit cards

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  • Ink Business Unlimited Credit Card
Annual Fee $0
APR 13.24% – 19.24%
Credit score 670 – 850

If you are looking for a credit card that gives you cashback, here it is. You will get 1.5% of unlimited cashback on every purchase for your business. If you spend $7,500 in the first 3 months, you will earn a $750 bonus.

Never pay an annual fee and get a 0% introductory APR for the first 12 months.

  • American Express Blue Business Cash Card
Annual Fee $0
APR 13.49% – 21.49%
Credit score 670 – 850

Having a Startup is challenging. Make it easier with this credit card. Earn a 2% cashback on every eligible purchase for up to $50,000 spent in a year, then 1% cashback on every eligible purchase.

If you spend $3,000 during the first 3 months, you will get $250 statement credit. You get Expanded Buying Power, which will allow you to spend more than your credit line, as long as it is for business purposes.

The amount you spend over your limit is not unlimited, it adjusts considering different factors. Never pay an annual fee and get a 0% introductory APR for the first 12 months.

  • Capital One Spark Miles for Business
Annual Fee $95
APR 20.99%
Credit score 670 – 850

If you have to travel for business often, take a look at this credit card. Obtain 2X miles for every dollar spent on purchases, without your miles expiring ever. Once you spend $4,500 during the first 3 months, you will get a 50,000 miles bonus ($500 in travel).

You can redeem your miles for any travel-related purchase immediately. Employees can get their card for free and obtain 2X miles as well.  $0 annual fee for the first year and then $95 each year after that.

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Arturo Mendez

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