Each card on this list offers a wide variety of perks and a range of credit score requirements so you can find the best credit card for your small business. Personal and business credit cards work the same way in that you use them to make purchases and then pay off the balances. However, business credit cards tend to have special benefits and features designed to appeal to business owners.
Its comprehensive coverage includes business umbrella, commercial vehicle, crime, workers’ compensation, and liability insurance. Business insurance is crucial for protecting against financial loss, managing risk, and safeguarding employees. First Tech also offers the best credit union business accounts, with a business checking product featuring low or waivable fees and savings products with competitive yields.
You’ll need your Social Security number to apply, and Chase will do a hard credit pull — which may temporarily impact your personal credit score. But Chase does not otherwise report activity on business cards to consumer credit bureaus (unless you default on the card). Instead, activity on the Ink Business Unlimited® Credit Card appears on your business credit report and can help you build credit with your EIN. Whether you operate a sole proprietorship, partnership, corporation or Limited Liability Company, you can apply for a business credit card.
Corporate cards
Also, examine whether the card offers a grace period for purchases and how it handles late payments, as these policies can significantly impact your cash flow management. Business credit cards can help small-business owners track expenses, manage day-to-day operations and separate their business from their personal spending. A merchant cash advance is an attractive option for companies processing customer credit cards.
Bank of America Business Advantage Unlimited Cash Rewards Secured
For businesses that will use all (or many) of these offers, it can be a compelling card. Interest rates are high compared with business loans and lines of credit. We believe everyone should be able to make financial decisions with confidence. No-collateral business loans offer both benefits and drawbacks, making it important to weigh the pros and cons before deciding if one is right for your business. As a result, if you default on a business loan, your lender won’t have collateral, and it can seize and sell to recover its losses.
Self-employed business owners
- While this bonus is worth $1,200 when redeemed for cash back or $1,500 when redeemed for travel.
- As you can see, there are many advantages to having a business credit card.
- EIN only business credit cards approve businesses based on their Employer Identification Number (EIN) without requiring a Social Security Number or personal credit check.
- The main differences between them revolve around reward structure and card repayment structure.
- In addition, many business credit cards require a personal guarantee, which means your personal credit will be on the line for any balance you accumulate with your card.
- Many issuers won’t report business credit card activity to the consumer credit bureaus if your account is in good standing.
- Many provide dedicated account management, custom corporate card rewards programs, and volume-based incentives.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. The 0% APR period applies to balance transfers made during your first 30 account days. There’s also a 3% balance transfer fee applied to each transfer with a $5 minimum, so your balance transfer won’t be completely free. Jerod Morales is a deputy editor at Forbes Advisor and a travel rewards expert.
This card not only allows users to earn rewards on purchases but also provides the opportunity to establish a positive credit history. Once users have demonstrated their creditworthiness, they may eventually be eligible to upgrade to an unsecured card. It’s worth noting that some credit card providers allow you to repay select purchases over time, with interest.
Best 0% Intro APR Consumer Credit Card for Balance Transfers
For example, the Capital One Spark Classic for Business is a good no-annual-fee card for business owners with fair credit that offers cash back on every purchase. A secured business credit card will likely be among the easiest cards to receive approval for since lines of credit with secured cards are collateralized. Though these cards do require business owners and operators to secure the line of credit with a deposit, they can offer great ways for businesses to build credit. Earning transferable miles on every purchase without limits (and at a strong rate), the Capital One Venture X Business will turn heads for business owners who appreciate travel perks and rewards (rates & fees). First Tech FCU is ideal for businesses seeking both banking and insurance services.
Why Small Businesses Need a Business Credit Card
During the approval process for a business credit card, issuers will look at the credit history of the business and… When looking for a business rewards credit card, people tend to focus, understandably, on the rewards offered. However, your rewards redemption options are also important, as they can determine how far your rewards will go. In many cases, a card will have multiple redemption options, with some options valuing your points more highly than others.
- If you are primarily motivated to obtain a business credit card without providing your SSN because of concerns about your personal credit being reported, you should know that alternative options are available.
- However, you can earn a $395 statement credit on eligible purchases, which could make up for that hefty annual fee.
- The card also offers a $100 credit after charging qualifying flight purchases to your card.
- The card also has an introductory APR offer, which can help a new business acquire inventory or pay upfront expenses and have time to pay in full without accruing interest.
- According to our proprietary data, approvals for business credit card applications made via Bankrate were highest in January 2024, with 55 percent of applications submitted via Bankrate approved.
- One unique benefit of this card is that you can get a 35% rebate of the points you use for select flights booked with Amex Travel.
They give your business greater spending flexibility and offer rewards in often-used categories such as advertising or shipping best small business credit cards services. To qualify for a business credit card, you must be an owner, officer, or partner of a business, and you must have either a Social Security number or Tax ID number. The best business credit cards also require at least good personal credit for approval. You can get a corporate card or certain co-branded business credit cards if you want to use only your EIN.
Cashback is preferable if you want a return on your credit card expenses without the hassle. Business credit cards can help you simplify your bookkeeping and keep track of your expenses. Many business card issuers offer integration with popular accounting software such as QuickBooks. You can also add employee cards so your people can make purchases on their own without you having to mess with a reimbursement system. If you have a fair credit score, you’ll find that you have more options.
