Published By Janet Gershen-Siegel at August 24, 2018
Written by Janet Gershen-Siegel
Are you in the market for the best credit card for small business owners? We did the digging so you won’t have to.
We examined a considerable number of corporate credit cards; here are our favorites.
According to the SBA, corporate credit card limits are 10 – 100 times that of personal cards! This shows you can get a lot more cash with company credit.
And it also means you can have personal credit cards at stores. But you would also now have a second card at the same retail stores for your company. And you will not have to have collateral, cash flow, or financial information to get corporate credit.
Benefits vary, so make certain to select the benefit you prefer from this assortment of options.
For a 0% APR period, we like the Ink Business Cash ℠ Credit Card. You pay no yearly cost. It’s got an interest-free time period. It has flexible cash-back rewards. There are spending limits for employees. You will need a credit score of 690 or higher.
For an introductory 0% APR period, we also go for the Blue Business ℠ Plus Credit Card from American Express. It has an introductory 0% APR for 15 Months. You can earn double points on day-to-day company expenses up to annual cap. But the normal APR is 12.24% – 20.24% (variable).
Get it here: https://creditcard.americanexpress.com/blue/
For Fair Credit, we are partial to the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. You will need to have a credit score of 690 or better.
TAKE NOTE: the standard APR is 23.99% variable APR.
Take a look at the SimplyCash Plus Business Credit Card from American Express. You can earn as much as $400 cash back. Earn a $200 statement credit after spending $5,000.
You get 5% cash back at US office supply stores and on wireless phone services bought straight from US service providers. But this applies to the first $50,000 of annual spending.
You also get 3% cash back on spending category of your choice. So this is from eight different categories. They include airfare, gas, advertising and computer purchases.
But this applies to the first $50,000 of yearly spending. Plus you get 1% cash back on all other purchases.
Also, check out the Bank of America Business Advantage Cash Rewards MasterCard Credit Card. With it, you can get a $200 statement credit after $500 in purchases. But this is during 60 days of account opening.
You also get 3% cash back on purchases at gasoline stations and office supply stores. So this is as much as $250,000 per year.
And you get 2% cash back on purchases at eateries. Also get 1% cash back on all purchases. There is no annual fee. But it is available to applicants with exceptional credit. Also, you can only redeem your cash back in $25 increments.
Additionally, check out the Spark Cash Select from Capital One. You get 1.5% cash back on all purchases, with no restrictions. New cardholders can also get a $200 cash bonus as soon as they spend $3,000 on new purchases. But this is during the first three months of account opening.
New customers also get initial APR of 0% on purchases for nine months. Also, there is no annual fee.
For Travel Points, we like the Gold Delta SkyMiles Business Credit Card from American Express. Get 30,000 bonus miles after you make $1,000 in purchases on your new card within your very first three months. Terms and limitations apply.
Also earn a $50 statement credit after you make a Delta purchase with your new card within your first 3 months. And earn two miles per dollar spent on purchases made directly with Delta. Earn one mile on each eligible dollar spent on purchases.
Check out the Business Platinum Card from American Express. Travel benefits including access to these airport lounge networks:
You also receive Gold Status when you sign up for the Starwood Preferred Guest program. There is also a $200 annual air travel fee credit. There is a $100 credit towards the Global Entry application fee, including access to TSA PreCheck program.
You get one point for every dollar spent on most purchases. Also, you get one and a half times the points on charges of $5,000 or more on qualified purchases. But this is up to one million added points each year.
You get five points per dollar spent purchasing flights and prepaid hotels from the American Express Travel website.
Also, be sure to check out the Ink Business Preferred Card from Chase. Earn 80,000 bonus points once you spend $5,000 on purchases in the first three months from account opening.
Earn three points for each dollar on the first $150,000 spent in a combination of purchases on travel, shipping purchases, and internet. Or earn three points to the dollar on purchase of cable and phone, or advertising purchases made with social media sites and search engines.
So this is for each account anniversary year. Earn one point per dollar on all other purchases. There is no limit to the amount you can earn.
For Low APR/Balance Transfers Business Credit Cards, we like the U.S. Bank Business Edge Platinum. You begin with twelve months of 0% APR financing on new purchases and balance transfers. There is a 3% balance transfer charge.
After that, the purchase APR is a variable 10.49% – 18.49%, which depends upon creditworthiness. But there is no yearly fee. This card is just on offer to those with great or excellent credit. However, there is no rewards program for purchases.
Also, have a look at the Blue Business Plus Credit Card from American Express. It has a 15-month initial 0% APR offer. There is no yearly fee. Right now companies can get double points on the initial $50,000 in purchases per year.
Get it here: https://creditcard.americanexpress.com/blue/
Take a look at the Wells Fargo Business Secured Credit Card. It allows cardholders to obtain a credit limit of $500 – $25,000. The amount available corresponds to the amount of funding you offer to secure the line.
Your purchase APR rate can be as low as a variable 13.15%. The yearly fee is $25. The more cards you have the more expensive your yearly fee is going to be.
This card allows business owners with bad personal credit to get a card to make purchases and set up business credit. But the card will only report to the personal credit agencies if you default or are late on payments.
Consider the Business Gold Rewards Card from American Express OPEN. You can earn 50,000 Membership Rewards points after $5,000 in purchases on the card in first three months. You get three points on your choice of five categories.
And you get two times the points on the remaining categories. Also, you get one point per dollar on all other purchases. It has a $0 annual fee for the first year. But then your yearly fee rises to $175.
Also, check out the Business Platinum ® Card from American Express OPEN. You can get up to 75,000 Membership Rewards points at the time of account opening.
You can also get 50,000 Membership Rewards points. But this is after spending $10,000. Also get an extra 25,000 points after spending an additional $10,000. So these are all on qualified purchases during the initial three months.
Plus you can get five times the Membership Rewards points on airline flights and prepaid hotels on amextravel.com. However, it has a $450 yearly fee.
What is it? Why, it’s building business credit, of course! Company credit is credit in a small business’s name. It doesn’t connect to an owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the business. Thus, a business owner’s business and individual credit scores can be very different.
Due to the fact that business credit is separate from consumer, it helps to protect a small business owner’s personal assets, in case of a lawsuit or business insolvency. Also, with two separate credit scores, an entrepreneur can get two different cards from the same vendor. This effectively doubles buying power.
Another benefit is that even startups can do this. Heading to a bank for a business loan can be a formula for disappointment. But building company credit, when done properly, is a plan for success.
Individual credit scores depend upon payments but also additional components like credit utilization percentages. But for corporate credit, the scores truly only hinge on whether a small business pays its debts punctually.
Your best credit card for small business owners will have a basis in your credit history and scores.
Only you can decide which perks you want and need. So be sure to do your homework.
And, as always, make sure to build credit in the recommended order for the max, fastest benefits. Check out how this will help your company get the best credit card for small business owners.