Published By Janet Gershen-Siegel at October 5th, 2020
Apply for a business credit card now. This is actually an excellent time to get your business credit ducks in a row. Applying for a business credit card is easy. You can do it even in an economic crisis.
Per the SBA, small business credit card limits are 10 – 100 times that of personal car. So don’t use personal credit cards for business! Instead, use business only credit cards.
This means you can get a lot more cash with small business credit. And it also means you can have personal charge cards at stores. So you would now have a second card at the same shops for your business.
And you won’t have to have collateral, cash flow, or financials in order to get company credit.
The number of US banks and also thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the marketplace in addition to deregulation in the 1990s, lowering barriers to interstate banking. See: https://www.cato.org/blog/why-there-has-been-no-great-reversal-us-banking
Assets focused in ever‐larger financial institutions is troublesome for local business proprietors. Big banks are much less likely to make small loans. Economic recessions suggest financial institutions end up being much more cautious with lending. Thankfully, business credit does not depend on banks.
Benefits vary, so make certain to choose the reward you prefer from this selection of options. It’s a great way to decide on applying for business credit card. This is how to get credit for a business.
We have the best business credit cards for new small business. But it’s beyond the best startup business credit card. And this will even work during an economic crisis.
Take a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first one year. Afterwards, the APR is a variable 14.74 – 20.74%.
Get double Membership Rewards® points on everyday company purchases like office supplies or client suppers for the initial $50,000 spent each year. Get 1 point per dollar afterwards.
You will need good to excellent credit to qualify.
Also take a look at the American Express® Blue Business Cash Card. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. But its rewards are in cash as opposed to points.
Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. After that get 1%.
It has no annual fee. There is a 0% introductory APR for the initial twelve months. After that, the APR is a variable 14.74 – 20.74%.
You will need good to exceptional credit scores to qualify.
Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your business, without minimum to redeem.
While this card is within reach if you have average credit, beware of the APR. But if you can pay on time, and completely, then it’s a good deal.
Take a look at the Ink Business Unlimited℠ Credit Card. Past no yearly fee, get an introductory 0% APR for the initial one year. After that, the APR is a variable 14.74 – 20.74%.
You can earn unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the initial 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more via Chase Ultimate Rewards®. You will need excellent credit to get this card.
Have a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which then rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.
This card is excellent for travel if your costs don’t fall under typical bonus categories. You can get unlimited double miles on all purchases, with no limits. Get quintuple miles on rental cars and hotels if you book with Capital One Travel.
Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. Yet you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to exceptional FICO rating to qualify.
For an excellent sign-up offer and bonus categories, take a look at the Ink Business Preferred℠ Credit Card.
Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.
Get 100,000 bonus points after spending $15,000 in the initial 3 months after account opening. This works out to $1,250 towards travel rewards if you redeem using Chase Ultimate Rewards.
Get three points per dollar of the initial $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.
You can get 25% more in travel redemption when you redeem for travel with Chase Ultimate Rewards. You will need a great to superb FICO score to qualify.
For no yearly fee while still getting travel rewards, have a look at this card from Bank of America. It has no yearly fee and a 0% introductory APR for purchases during the initial 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.
You can get 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.
Get unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is regardless of how much you spend.
Also get 3 points per every dollar spent when you book your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can earn and points do not expire.
You will need superb credit scores to get this one (as in, 700s or better).
Take a look at the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. After that, pay $250 per year.
Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.
You will need great to excellent credit to qualify.
Look into the Brex Card for Startups. It has no yearly fee.
You will not need to provide your Social Security number to apply. And you will not need to provide a personal guarantee. They will take your EIN.
Nevertheless, they do not accept every industry.
Additionally, there are some industries they will not work with, and others where they want added documentation. For a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.
You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.
You can have poor credit scores (even a 300 FICO) to qualify.
Find it here: https://brex.com/lp/startups-higher-limits/
Have a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. Afterwards, this card costs $95 each year. There is no introductory APR deal. The regular APR is a variable 18.49%.
You can get a $500 one-time cash bonus after spending $4,000 in the first 3 months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.
You will need good to excellent credit to qualify.
Take a look at the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for 12 months. After that the regular APR is a variable 14.49 – 22.49%.
Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimal spend requirement.
You can download transactions| easily to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to superb credit to get this card.
Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first 12 months. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.
You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.
Get 2% cash back on the first $25,000 spent in combined purchases at filling stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases. There is no restriction to the amount you can earn.
You will need outstanding credit scores to get this card.
Check out the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the first 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no annual fee. You can get a $300 statement credit offer.
Get 3% cash back in the category of your choice. So these are filling stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Earn 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. After that get 1% after, with no limits.
You will need excellent credit to qualify.
Find it here: https://promo.bankofamerica.com/smallbusinesscards2/
Take a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. And earn a one-time $200 cash bonus when you spend $3,000 on purchases in the first three months. Rewards never expire.
Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.
You will need good to outstanding credit to qualify.
Your optimal company credit cards hinge upon your credit history and scores.
Just you can decide which advantages you want and need. So be sure to do your homework. What is excellent for you could be disastrous for someone else when you apply for business credit card.
And, as always, make sure to build credit in the recommended order for the greatest, fastest benefits. Apply for a business card and succeed in business. And while you’re at it – get business credit! The COVID-19 situation will not last forever.