Business credit cards for startups
There are numerous compelling reasons for you to think about utilizing a business credit card as the creator of a young, emerging organization. In addition to aiding in the separation of personal and corporate finances, it can also be useful for managing cash flow, assisting in the establishment of business credit, and putting money in your pocket through benefits and rewards. Here, we list a few of the top business credit cards for new companies.
The Best Business Credit Cards for Startups: How to Choose
You should consider a business credit card for your new company and ask yourself the following questions:
- Do you want to establish business credit?
- Do you frequently travel and desire travel benefits?
- Are you looking for rewards with cashback?
- Do you desire an introductory APR with 0% interest?
- What is your personal credit rating?
You might reduce your options after responding to questions like these. For instance, if you're seeking to establish company credit, be sure the credit cards you're considering report your balance and payment history to both the major consumer and corporate credit bureaus.
Start your search for credit cards with a sizable welcome bonus if you want to earn travel rewards. Usually, you'll receive a sizable welcome bonus after meeting a minimum spending requirement over a period of months or billing cycles following account opening. Additionally, you want to choose a card that provides you with a high point or mile reward rate for the kinds of purchases your company makes the most frequently.
The greatest welcome bonus and rewards for spending will also be offered by the finest credit card for earning cash back rewards. You might find a card with a high rate of return on all purchases or one with bonus cash back for some typical company expenses, such as phone service provider rates, and just 1% cash back on all other expenditures.
It is possible to find business cards with 0% APR promotional financing offers, but these deals are rarely as generous as those offered by personal cards. This could be a great way to save money on interest costs while financing your business operations.
It's also important to think about your own credit history and score because there's no point in applying for a card that you won't be approved for.
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The Top Business Credit Cards for New Businesses
To assist you in choosing the best credit card for your business, we've categorized and selected seven excellent business credit cards for startups. Remember that the card offer terms could change at any time, and terms and conditions still apply.
1. Business Capital One Spark Classic is the best option for people with good to excellent credit.
A business credit card called the Capital One Spark Classic for Business gives customers 1% cash back on all purchases and 5% cash back when they book hotels and rental cars through Capital One Travel. This card is more flexible, in contrast to many corporate credit cards that demand outstanding credit. There are no costs for international transactions, and there is no yearly fee.
2. Extended 0% Intro APR Offer from US Bank Business Platinum Card
A credit card with 0% APR can be a great choice if you need money for your startup. With 20 months of 0% APR financing on new purchases and balance transfers and a 3% balance transfer charge, the card has a respectable introductory APR. The typical APR after that is variable and ranges from 11.99% to 20.99%. There is no annual fee for this card, and it comes with Visa Spend Clarity to help you keep tabs on your spending and manage your expenses.
*Nav independently gathered all of the data regarding the U.S. Bank Business Platinum Card credit card. Nav does not currently have this card accessible. Visit the Nav Credit Card Marketplace to explore what business credit cards are offered.
3. Advantages for Amazon customers: American Express Prime on Amazon Business Card
The Amazon Business Prime American Express Card is a great option if your company will frequently make purchases from Amazon, AWS, or Whole Foods. The option of more time to pay when cash flow is limited or a high reward rate when you pay swiftly on specific items is tempting to businesses. With a qualified Prime membership, you can benefit from 5% Back or 90-Day Terms on purchases made on Amazon.com, Amazon Business, AWS, and Whole Foods Market in the United States. During each calendar year, you will receive 5% back on the first $120,000 in purchases and 1% back on all subsequent purchases. 2% Cash Back is available at American eateries, American gas stations, and on wireless phone services bought straight from American service providers. On all other purchases, you get 1% back.
4. Costco Anywhere provides savings on gas rewards. Citi's Visa Business Card
You might choose a petrol rewards credit card if your line of work requires regular travel. The Citi Costco Anywhere Visa Business Card is a great option. Costco is already a well-liked spot to refuel because of its low fuel pricing. The general cash back incentives for fuel purchases help you save more: For the first $7,000 in annual purchases of qualified gas and EV charging, customers will receive 4% cash back, and then 1% cash back. 3% cash back on restaurant and travel-related purchases2% cash back is offered on all other Costco and Costco.com purchases. 1% cashback is available on all other purchases. The annual cost of your premium Costco membership is $0.
5. A fantastic welcome offer for airline reward cards: Delta SkyMiles® Gold American Express Business Card
If you frequently fly with Delta, you might think about getting one of their co-branded credit cards, which give cardholders the chance to earn points for flights, priority boarding, free checked luggage, and other benefits. The Delta SkyMiles® Gold Business American Express Card can be particularly beneficial if you're seeking a substantial introductory incentive.
6. Generous cash-back incentives and a welcome bonus American Express Blue Business CashTM Card
The American Express Blue Business CashTM Card is a fantastic option overall since it combines strong cash back returns with a cashback welcome incentive. Additionally, it provides a variable spending cap. According to Amex, it is as follows: "Every aspect of your business changes regularly, including workflow, inventory, and floor plans. You now have the ability to spend more than your credit limit thanks to expanded buying power. Just keep in mind that there are limitations to how much you can spend on top of your credit limit. It changes depending on how you use the card, as well as your usage of other financial resources that American Express is aware of.
Greeting offer Get a $250 statement credit after spending $3,000 in your first three months using your card. and N/A.
7: Bonuses, a welcome offer, and an introduction APR: The Business Advantage Customized Cash Rewards Mastercard® from Bank of America®.
With a 0% introductory APR offer, a generous cashback program with a high cashback rate in the category of your choice, and a welcome bonus of $300 statement credit online after making at least $3,000 in net purchases in the first 90 days of your account opening, this card has something to offer everyone. All of this for a $0.00 yearly cost.
How to maximize a business credit card's potential
Not every card is made equally. You should pick the one that best suits the requirements of your new company. If you plan on traveling frequently, for instance, you might want to choose a card that offers fantastic travel benefits, such as points you can redeem for hotel or flight rewards. In the first year, sign-up incentives or bonus points for particular expenditure categories (such as dining out) maybe even more valuable.
Because you can use the money however you choose, cash back rewards are also incredibly well-liked. Some credit cards, such as the American Express Blue Business Cash Card, provide cash back on all permitted purchases with high cash back annual limits.
In some purchasing areas, including petrol stations or office supply retailers, other cash back cards might provide higher cash back returns. Try to predict your spending to ensure that you select the appropriate card, but remember that if your needs change, you can look for a different card.
Choose a card with a low-interest rate or a 0% introductory APR offer if you want to transfer existing debt from a high-cost loan or credit card. The majority of credit cards have a variable APR, which is mostly determined by the applicant's creditworthiness. Make sure to make your credit card payments on time if you choose to benefit from a 0% APR introductory rate. If you make a late payment on your business credit card, the majority of credit card issuers reserve the right to increase your rate. Keep track of the due dates for credit card payments, or even better, set up automatic payments.
A business credit card can be an excellent tool for a young company to establish its credit. If the card reports to the business credit bureaus (not all of them do), you will be able to demonstrate the capacity to make timely payments—one of the first steps to developing a good business credit profile—if the card reports to the business credit bureaus (not all of them do) (even if your credit is less-than-perfect right now).
You may use the purchases you already make to earn rewards, discounts, or cash back by choosing the correct rewards card. Think carefully about the advantages and the cost of the card before clicking the "Apply Now" button. Although they have higher yearly fees, premium cards like gold or platinum cards offer higher tier rewards. You'll find that different issuers—even those like Bank of America, Chase, or CapitalOne—offer a variety of business credit card programs.
How to be approved for a new business credit card
One of the few business loans available to startups without at least a year in operation or substantial revenue is a small business credit card. (And sure, you are using a loan when you have a balance; the credit card company is the lender.) Few company credit cards have minimum revenue restrictions, but the majority accept money from all sources and will ask you questions about your personal and business finances to see whether you qualify. A personal guarantee is required for almost all cards.
When getting a card for a brand-new business, small business credit cards are often a better fit than corporate cards. Small business cards are frequently offered to startups, whereas corporate cards are typically only available to well-established businesses with several employees and sizable revenues. (A corporate card from Brex is an exception; one of their cards is offered to new companies so long as they also have a Brex Cash account and pay the card on a daily basis. It resembles a business debit card in that regard.
How can I apply for a business credit card?
Although the9 bank where you hold your business bank account might potentially provide a business credit card, most startups will apply for a business credit card online. When getting a card for a brand-new business, small business credit cards are often a better fit than corporate cards.
Why should a new firm use a business credit card rather than a personal credit card?
We appreciate your asking. Here are three key benefits of using a corporate credit card while making transactions for your company:
You can divide your personal and company costs by using a business credit card. It will be simpler for you to keep track of business expenses, which will make tax season and maintaining a corporate budget a lot less difficult.
You can start building a distinct business credit score from your personal one by obtaining a card in your company's name. This means that, with some exceptions—read about which business credit cards report to personal credit bureaus here—if you have to make a late payment, your business credit will be affected rather than your personal credit.
Your company's trustworthiness will increase when you begin to construct a business credit profile. Strong company credit scores will help you qualify for additional funding at better rates when the time comes to apply for more business financing.
Compared to business debit cards, checks, or cash, business credit cards offer better fraud protection.
Some business owners might be reluctant to use credit because of concern that they'll be tempted to rack up debt. The best solution for some new firms in such a situation may be a company charge card. Instead of business credit cards, charge cards are a great choice for startups because they don't let you carry a balance from month to month and must be paid in full every month.
According to a 2017 poll by the National, Small Business credit cards are the second most common source of funding for small firms. Decide carefully on the form of company credit card you require, and join the ranks of business owners whose command of this crucial resource continues to be a key factor in their success.
How to increase credit for a new business
You can establish company credit through the appropriate use of a credit card that discloses your balance and payment history to business credit bureaus. This indicates that you have little to no debt and always pay your payments on time.
Due to the fact that sole proprietorships cannot establish business credit, you must also be incorporated and use your EIN. Another option to establish a business credit history is to open a business bank account. In addition to using credit cards, it's beneficial to build a credit history with other suppliers and vendors who send information about your payments to business credit bureaus. Finally, to guarantee that the data presented here is correct and current, you should keep an eye on your company's credit reports.