Best Business Credit Cards: As a business owner, you should consider getting a business credit card because any of type of business requires access to credit.
This article will give a list of the 10 best business credit cards for small business you can opt for and what to consider when choosing a business credit card.
These credit cards can be a great way to finance business purchases, as well as saving large amounts of money over a period of time.
What to Consider When Choosing a Business Credit Card
Many business owners tend to depend on their personal credit card to cover their day-to-day operations. However, it is better to use a card specific to the needs of your small business instead.
This helps keep your personal and business expenses separate, which can be a lifesaver for accounting purposes and maintaining your personal credit score.
The following are factors will help you choose the credit card for your different needs:
1. Cost
As with any aspect of a small business, the cost is important. Interest rates and annual fees are the two main costs associated with business credit cards:
a. Interest Rate: Keep in mind that many cards come with low-interest introductory rates. But don’t forget to read the full offer details so you know what the rate will be after the introductory period ends.
b. Annual Fee: The annual fee can vary greatly depending on the perks that come with the card. Generally speaking, business rewards credit cards have slightly higher interest rates and annual fees to help the card issuer offset the expenses of the rewards and benefits. For that reason, make sure to weigh the benefits of the card with the associated rewards.
2. Rewards
If you plan to pay your balance in full each billing cycle, a rewards credit card may be a smart option. Your ability to pay on time is a critical factor since rewards credit cards often feature a slightly higher interest rate than traditional credit cards.
There are a variety of rewards options now available, so consider what would most benefit your small business:
a. Cash Back: Earn cash back on a percentage of your spending.
b. Travel: Earn points or miles for airlines, car rentals, and hotels. This is a great option for small businesses with employees who travel often.
c. Reward Points: Many of the cards allow you to earn points that can be redeemed for a variety of merchandise. Evaluate the merchandise offering in terms of value for your company’s needs.
3. Credit versus Charge Card
Like personal credit cards, business credit cards allow you to carry a balance into the next billing period (with interest). This allowance gives small businesses the ability to pay off an expense over time.
Alternatively, business charge cards require the balance to be paid in full each billing cycle. This typically isn’t a realistic route for cash-strapped start-ups and is better suited for more-established businesses.
The Following are the 10 Best Business Credit Cards 2021:
1. Chase Ink Business Preferred Credit Card
Current Bonus: Earn 80,000 bonus points after you spend $5,000 on purchases in the first three months from account opening.
Current Bonus Value: $1,600
Standout Benefits: Get 3 points per dollar on the first $150,000 spent on travel, shipping, social media advertising and internet/cable/phone services each account anniversary year, plus 1 point per dollar on everything else.
This card also offers cell phone insurance when you use it to pay your (and your employees’) cell phone bill, and primary rental car insurance. You can get employee cards at no additional cost, and there are no foreign transaction fees.
Annual Fee: $95
2. Capital One Spark Miles for Business
Current Bonus: Earn up to 200,000 miles – 50,000 miles after you spend $5,000 in the first three months, plus 150,000 miles after you spend $50,000 in the first six months.
Current Bonus Value: $2,800
Standout Benefits: Earn 2 miles per dollar on all purchases with no minimum for redeeming. No foreign transaction fees. Free employee cards.
Annual Fee: $95 (waived the first year).
3. American Express Business Gold Card
Current Bonus: Up to one free year of ZipRecruiter Standard, up to one free year of G Suite Basic for three users.
Standout Benefits: This recently launched card offers 4x points on your top two select spending categories each month, from a list of six options including US restaurants and US purchases for shipping and advertising.
This is a step up from the Business Gold Rewards Card from Amex (which is no longer open for applications), which offers 3x points on your choice of category from a list of five options, which doesn’t include US restaurants.
You can earn 4x points on your top two select spending categories on the first $150,000 spent each year (then 1x). If you max this out, you’d walk away with a whopping 600,000 Membership Rewards points. Another standout benefit is a 25% Pay with Points discount when you use points to book airfare through Amex.
Annual Fee: $295
4. United Explorer Business Card
Current Bonus: Earn 75,000 miles after you spend $5,000 on purchases in the first three months
Current Bonus Value: $1,050
Standout Benefits: Earn 2x miles on United, at restaurants, office supply stores and gas stations, and 1 mile per dollar on everything else. You will also get priority boarding and a first bag checked free. A two United Club passes each account anniversary. An expanded award availability.
Annual Fee: $95 (waived the first year).
5. CitiBusiness Advantage Platinum Select World Mastercard
Current Bonus: Earn up to 60,000 miles; 50,000 bonus miles after you spend $3,000 on purchases in the first 3 months and 10,000 bonus miles after you spend $10,000 total in the first 12 months of account opening.
Current Bonus Value: $840
Standout Benefits: Earn 2x miles on American Airlines purchases and at telecommunications merchants, cable and satellite providers, car rental merchants and gas stations. Earn 1 mile per dollar everywhere else. Get a first checked bag for free on domestic itineraries and 25% off in-flight purchases.
If you put $30,000 in spending on the card in a calendar year, you’ll get a companion certificate, letting you add a companion to a flight for $99 plus taxes and fees (upon account renewal and account must remain open 45 days after anniversary date).
Annual Fee: $99 (waived the first 12 months).
6. The Business Platinum Card from American Express
Current Bonus: Earn 50,000 points after you spend $10,000 in the first three months and an extra 25,000 points after you spend an additional $10,000 also within the first three months from account opening.
Current Bonus Value: $950
Standout Benefits: Earn 5 points per dollar on airfare and on prepaid hotels booked through American Express Travel, 1.5 points per dollar on purchases of $5,000 or more (up to 1 million extra points per year) and 1 point per dollar on everything else.
Redeem points directly for first or business class, or for any seat on the airline of your choice, and get a 35% points rebate. As a cardholder, you’ll enjoy access to Centurion and Priority Pass lounges, plus Delta Sky Clubs when you’re flying Delta.
You also get a $200 annual airline fee credit and a Global Entry or TSA PreCheck application rebate. There are no foreign transaction fees.
Annual Fee: $450
7. Starwood Preferred Guest Business Credit Card from American Express
Current Bonus: 75,000 points after you spend $3,000 in the first three months.
Current Bonus Value: $675
Standout Benefits: Get 6 points per dollar at Marriott and SPG properties; 4 points per dollar at US restaurants and gas stations and on wireless telephone services purchased directly from US service providers and on US purchases for shipping; and 2 points per dollar on all other purchases.
Receive one free award night every year after your account anniversary, costing up to 35,000 points. Get complimentary Silver elite status in the new Marriott program, and if you spend $35,000 on the card in a calendar year (as of January 2019), earn Gold status. Also as of 2019, get 15 elite credits toward the next level of elite status.
Annual Fee: $0 the first year, then $95.
8. Southwest Rapid Rewards Premier Business Credit Card
Current Bonus: Earn 60,000 Rapid Rewards points when you spend $3,000 in the first three months.
Current Bonus Value: $900
Standout Benefits: Get 2 points per dollar on Southwest purchases and Rapid Rewards hotel and car rental partner purchases and 1 point per dollar on everything else. Plus, get 6,000 points after your cardmember anniversary.
Earn 1,500 Tier Qualifying Points toward Southwest elite status for every $10,000 you spend on the card annually (up to 15,000 TQPs). No foreign transaction fees.
Annual Fee: $99
Important Reads:
9. Capital One Spark Cash for Business
Current Bonus: Up to $2,000 cash bonus – $500 after you spend $5,000 in the first three months, plus $1,500 after you spend $50,000 in the first six months
Current Bonus Value: $2,000
Standout Benefits: Get unlimited 2% cash back on all purchases. Employee cards at no additional cost.
Annual Fee: $95 (waived the first year).
10. Chase Ink Business Cash Credit Card
Current Bonus: Earn $500 bonus cash back after you spend $3,000 in the first three months.
Current Bonus Value: $500
Standout Benefits: Get 5% cash back on the first $25,000 spent in combined purchases each account anniversary year at office supply stores and on internet, cable and phone services. Get 2% cash back on the first $25,000 spent in combined purchases each account anniversary year at gas stations and at restaurants. Get an unlimited 1% cash back on everything else.
Annual Fee: $0
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