What to Consider When Choosing a Business Credit Card
Many business owners tend to rely on their personal credit cards to cover day-to-day operations. However, it is best to use a card specific to your small business needs.
This keeps your personal expenses separate from those of your business, which can save your life for accounting purposes and maintaining your personal credit score.
The following 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 commercial credit cards:
at. Interest Rates: Remember that many cards come with low introductory interest rates. But be sure to read the full details of the offer so you know what the rate will be after the introductory period ends.
b. Annual Fees: Annual fees can vary greatly depending on the card’s benefits. Typically, Business Rewards credit cards have slightly higher interest rates and annual fees to help the card issuer offset rewards and benefits expenses. For this reason, be sure to weigh the benefits of the card against the associated rewards.
2. Awards
you plan to pay the balance in full every billing cycle, a rewards credit card might be a smart option. Your ability to pay on time is a critical factor, as rewards credit cards often have a slightly higher interest rate than traditional credit cards.
There are a variety of rewards options now available, so consider which would benefit your small business the most:
at. Cash Back: Earn cashback on a percentage of your spending.
b. Travel: Earn points or miles for airlines, car rental companies, and hotels. It’s a great option for small businesses with employees who travel often.
vs. Reward Points: Many 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 business needs.
3. Credit card against debit
Like personal credit cards, business credit cards allow you to carry over the balance to the next billing period (with interest). This allowance gives small businesses the ability to repay an expense over time.
Alternatively, business payment cards require the balance to be paid in full each billing cycle. This is generally not a realistic path for cash-strapped start-ups and is better suited to more established businesses.
Here are the 10 Best Business Credit Cards of 2021:
1. Preferred Chase Ink Business Credit Card
Current Bonus: Earn 80,000 bonus points after spending $5,000 on purchases within the first three months of account opening.
Current bonus value: $1,600
Outstanding Benefits: Earn 3 points per dollar on the first dollars spent on travel, shipping, social media advertising, and internet/cable/telephone services each year of the account anniversary, plus 150,000 points per dollar for the rest.
This card also provides cell phone insurance when you use it to pay your (and your employees’) cell phone bills, as well as your primary rental car insurance. You can get employee cards at no additional cost, with no foreign transaction fees.
Annual fee: $95
2. Capital One Spark Miles for Business
Current bonus: Earn 200,000 miles – 50,000 miles after spending $5,000 in the first three months, plus 150,000 miles after spending $50,000 in the first six months.
Current bonus value: $2,800
Great Benefits: Earn 2 miles per dollar on all purchases with no minimum for redemption. 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 and 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 spending categories each month, from a list of six options including US restaurants and US shopping for shipping and advertising.
This is a step up from Amex’s Business Gold Rewards card (which is no longer open for applications), which offers 3x points on your choice of category from a list of five options, only including not American restaurants.
You can earn 4x points on your first two selected spend categories on the first $150,000 spent each year (1x thereafter). If you max this out, you would earn 600,000 Membership Rewards points. Another great perk is the 25% Pay with Points discount when you use points to book airfare through Amex.
Annual fee: $295
- United Explorer Business Card
Current bonus: Earn 75,000 miles after spending $5,000 on purchases in the first three months
Current bonus value: $1,050
Hot Perks: Earn 2x miles on United, at restaurants, office supply stores, and gas stations, plus 1 mile per dollar on everything else. You’ll also get priority boarding and a first checked bag for free. Two United Club spend each account anniversary. Expanded reward availability.
Annual fee: $95 (waived the first year).
5. CitiBusiness Advantage World Platinum Select MasterCard
Current bonus: Earn up to 60,000 miles; 50,000 additional miles after spending $3,000 on purchases in the first 3 months and 10,000 after spending a total of $10,000 in the first 12 months of account opening.
Current bonus value: $840
Great Benefits: Earn 2x miles on American Airlines purchases and at telecom merchants, cable and satellite providers, car rental companies, and gas stations. Earn 1 mile per dollar everywhere else. Get a first checked bag free on domestic routes and 25% off inflight purchases.
If you spend $30,000 in card spend in a calendar year, you will receive a companion certificate allowing you to add a companion to a flight for $99 plus taxes and fees (upon account renewal, then -it must remain open X days after anniversary date).
Annual fee: $99 (waived the first 12 months).
6. American Express Business Platinum Card
Current Bonus: Earn 50,000 points after spending $10,000 within the first three months and additional 25,000 points after spending an additional $10,000 also within the first three months of account opening.
Current bonus value: $950
Hot Perks: Earn 5 points per dollar on prepaid airline tickets and hotels booked through American Express Travel, 1.5 points per dollar on purchases of $5,000 or more (up to 1 million additional points per year ), and 1 point per dollar for everything else.
Redeem your points directly for First Class or Business Class, or for any seat on the airline of your choice, and get a 35 points discount. As a cardholder, you will have access to the Centurion and Priority Lounges Pass, as well as Delta Sky Clubs when flying with Delta.
You also get a $200 annual airline commission credit and reimbursement for a Global Entry or TSA PreCheck application. There are no foreign transaction fees.
Annual fee: $450
7. Starwood Preferred Guest Business Credit Card from American Express
Current bonus: 75,000 tips after spending $3,000 in the first three months.
Current bonus value: $675
Outstanding Perks: Earn 6 points per dollar at Marriott and SPG properties; 4 points per dollar at restaurants and gas stations in the United States and on wireless phone services purchased directly from US service providers and on purchases made in the United States for shipping; and 2 points per dollar on all other purchases.
Receive a free night every year after your account anniversary, which will cost you up to 35,000 points. Earn free 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 starting in 2019, earn 15 Elite Credits to reach 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
Great Benefits: Earn 2 points per dollar on Southwest purchases and purchases from Rapid Rewards car rental partners, plus 1 point per dollar on everything else. Plus, get 6,000 points after your holder’s birthday.
Earn 1,500 Tier-Qualifying Points for Southwest Elite Status for every $1 you spend on the map each year (up to 10,000 TQPs). No foreign transaction fees.
Annual fee: $99
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9. Capital One Spark Cash for Business
Current bonus: Cash bonus of up to 2,000 – 500 after spending 5,000 in the first three months, plus 1,500 after spending 50,000 in the first half
Current bonus value: $2,000
Great Benefits: Get unlimited 2% cashback on all your purchases. Employee cards at no additional cost.
Annual fee: $95 (waived the first year).
10. Chase Ink Cash Business Credit Card
Current bonus: Earn $500 cashback after spending $3,000 in the first three months.
Current bonus value: $500
Great Benefits: Earn 5% cashback on the first dollar spent on combined purchases each account anniversary year at office supply stores and on Internet, cable, and phone services. Earn 25,000% cashback on the first dollars spent on combined purchases each account anniversary year at gas stations and restaurants. Get unlimited 2% cashback on everything else.
Annual fee: $0
