What makes credit cards particularly good choices for new businesses?
We’ve looked at the options and chosen cards with benefits such as 0% APR for a year – when you’re freed from paying interest, that gives you expanded buying power.
We’ve also given you choices of small business credit cards with good cashback rates and/or points or statement credits you can earn soon after account opening.
Can you Get a Business Credit Card to Start a Business?
You should avoid using a personal card for business expenses. However, your strong personal credit score, which appears on a personal credit check, is what enables you to qualify for approvals for small business credit cards for new businesses.
Even if your personal credit history is poor, a credit card issuer will still approve your business credit card application if you provide a personal guarantee in the form of a deposit. If you have a good or excellent credit score that demonstrates your financial resources, you will be approved for small business credit cards for new businesses.
Best Business Credit Cards for Startups
There are more details for you to learn about each business credit card we’ve chosen. In the listings and descriptions that follow, we’ve noted the key features a business owner may value.
So if you are asking why should I get a business credit card, here are some reasons why. By using a card for everyday business purchases and having a good payment history, you’ll be building business credit. When you build business credit, you’ll be building your credit record. That will improve your chances of being approved for business loans in the future and also build the credit limit on your card.
If you are still wondering what are business credit cards, make sure to find out what they are and what they can do for your business before you apply for one.
Here are our top choices for a small business credit card:
American Express Blue Business Cash Credit Card
You will earn 2% cash back on combined business purchases up to $50,000. The Blue Business Cash Card from American Express offers free employee cards, and you can set a predefined spending limit for these cards. All eligible purchases, whether made by you or your employees, contribute to the $50,000 limit.
Deals for Startups: Earn a $500 credit when you spend $5,000 on eligible purchases within the first 3 months of opening your account.
Annual Fees: $0
Introductory APR: 0% for 12 months, then 13.24 to 19.24% after the account anniversary year.
American Express Blue Business Platinum Card
You’ll get 150,000 rewards points after you spend $15,000 in the first 3 months with The Business Platinum Card from American Express. The platinum card from American Express has no annual fee.
Compare this to the American Express Business Gold Card, which gives you 80,000 rewards points after you spend 10,000 in the first 3 months. The American Express Business Gold Card has an annual fee (redeem rewards to pay) of $295.
Alternatively, the American Express Blue Business Plus credit card might be a more suitable choice. With the Blue Business Plus Credit card, you can earn 15,000 rewards points after spending $3,000 within the first 3 months, and you will receive double points on the first $50,000 spent each year.
Deals for Startups: Rewards points tied to expenditures in your first three months.
Annual Fee: $0
Introductory APR: 0% for 12 months, then 14.24 to 22.24% (same as Gold)
Chase Ink Business Unlimited Credit Card
You’ll get 1.5% cash back on purchases eligible for your business with the Ink Business Unlimited Credit Card: Cash Back | Chase. The dollar amount of expenditures is unlimited to qualify for the cashback; other business credit cards may set cashback limits. With your card membership, you’ll become eligible for the Chase Ultimate Rewards program.
Deals for Startups: You’ll get $750 cash back after you spend $7,500 in 3 months. You can earn the $750 again by spending $7,500 in the following 3 months.
Annual Fee: $0
Introductory APR: Enjoy a 0% APR for the first 12 months. After that period, the rate will range from 13.24% to 19.24%, depending on your creditworthiness as assessed by your payment history.
Chase Ink Business Cash Credit
The Chase Ink Business Cash Credit offers you the same spend $7,500, get $750 credit as the Chase Business Unlimited. It also offers a whopping 5% on $25,000 in combined purchases at office supply stores, wireless telephone purchases, phone services, and internet/cable costs. Small business owners who spend a lot on office supplies say this is one of the best business credit cards.
If you like bonus rewards, check the Chase Ink Business Preferred Credit Card. The Ink Business Preferred credit card gives 100,000 bonus points after you spend $15,000 in key business categories in the first 3 months.
Deals for Startups: spend $7,500, get $750 back twice.
Annual Fee: $0
Introductory APR: 0 for 12 months, then 13.24 to 19.24%
Capital One Spark Cash Plus
With the Capital One card, you can earn an unlimited 2% cash back on all select business categories. To be eligible for this card, you need to have excellent personal credit scores and a strong credit history. If your credit history doesn’t meet these requirements, consider the Capital One Spark Classic for Business as an alternative.
Deals for Startups: $1,000 bonus on account opening.
Annual Fee: $150
Introductory APR: Your balance must be paid in full monthly
Amazon Business Prime Credit Card
The Amazon Business Credit Card provides substantial cashback on every purchase made on Amazon. This is particularly beneficial for startups looking to equip their businesses, as you can make all your purchases on Amazon and take advantage of free shipping.
Deals for Startups: 5% cash back on all Amazon purchases, plus 2% cash back at restaurants.
Annual Fee: $0
Introductory APR: 14.24 to 22.24%
Discover IT Credit Card
The Discover IT card also offers 5% cashback on all Amazon purchases and offers generous cash back on gas purchases.
Deals for Startups: 5% cash back on Amazon, plus 5% cash back on gas purchases. When paying online through the Pay Pal portal, you can earn 5% on other purchases when you choose to pay with the Discover card.
Annual Fee: $0
Introductory APR: 11.99 to 22.99%
US Bank Triple Cash Rewards World Elite Master Card
With this card, there are no foreign transaction fees. The US Bank Triple Cash Rewards World Elite card has other deals. See below:
Deals for Startups: $500 cash back if you spend $4,500 in 150 days. 3% cash back on gas and EV purchases. 3% cash back on combined purchases of office stores, restaurants, and cell phones.
Annual Fee: $0
Introductory APR: 0% for 15 months, then 13.99 to 22.99%
Sam’s
The Sam’s Club credit card is a good choice for startups because of its generous cash-back options. You’ll need a Sams Club membership to get the card.
Deals for Startups: 5% cash back on gas purchases. 3% cash back on purchases at Sams Club.
Annual Fee: $0
Introductory APR: 15.65 to 23.65%
SVB Innovators Card
The SVB Innovators Card is specifically for startups and entrepreneurs.
Deals for Startups: You’ll earn 2 points for every dollar spent, and the points can be used for statement credit.
Annual Fee: $0
Introductory APR: The card balance must be paid in full monthly.
What is the best credit card for a new business?
It can be challenging to make a decision, but we recommend the Discover IT card. With this card, you earn 5% cash back on all purchases, which is difficult to surpass.
Image: Depositphotos
This article, “Small Business Credit Cards for New Businesses” was first published on Small Business Trends