Running a business can be costly, and finding ways to streamline your expenses is crucial for success. One way to do that? Choosing the best business credit card. Whether you’re looking to maximize rewards, build business credit, or secure low-interest rates, a credit card tailored for businesses can provide just the right benefits. But with so many options available, how do you choose the best business credit card?
This article will help you navigate the world of business credit cards, outlining the top options, their benefits, and how they can meet your business needs. Let’s dive right in and find out which business credit card can take your business to the next level.
Why You Need a Business Credit Card
Before we explore the best business credit cards, let’s tackle an essential question: Why should a business have its own credit card? Here’s the deal—keeping your business and personal finances separate is key to maintaining a healthy financial profile for your company. Plus, business credit cards come with a host of perks that you won’t get with a regular personal card, including:
- Higher credit limits: Since businesses often have more significant expenses, credit card companies offer higher limits.
- Rewards and cashback: Many business credit cards provide cashback, miles, or points on business-related purchases, helping you save in the long run.
- Expense tracking: Business cards often come with tools to help you track and manage spending more effectively.
- Building business credit: Using a business credit card responsibly can help build your company’s credit profile, which can come in handy for securing loans or better interest rates in the future.
What to Look for in a Business Credit Card
Selecting the right card is all about understanding your business’s needs. Here are the key factors to consider when choosing the best business credit card:
- Rewards structure: Does your business spend heavily in certain categories, like travel, office supplies, or advertising? Opt for a card that maximizes rewards in those areas.
- Annual fees: While some business credit cards come with no annual fee, others have hefty fees in exchange for premium benefits. Weigh the costs against the benefits to see if the fee is worth it.
- Introductory APR: If you plan on carrying a balance, look for a card with an introductory 0% APR to save on interest.
- Sign-up bonuses: Many cards offer sign-up bonuses when you spend a certain amount within the first few months. If you have big purchases coming up, these bonuses can offer a significant advantage.
- Additional perks: From travel insurance to purchase protection, some cards go the extra mile with added benefits that can be valuable for business owners.
Top 5 Best Business Credit Cards for 2024
Now that you know what to look for, let’s explore some of the best business credit cards available today. These cards have been selected for their generous rewards, beneficial perks, and overall value to business owners.
1. Chase Ink Business Preferred® Credit Card
If you’re a business owner who values flexibility and rewards, the Chase Ink Business Preferred® card is a top contender.
- Rewards: Earn 3 points per $1 on the first $150,000 spent on travel, shipping, internet, cable, phone services, and advertising purchases made with social media and search engines. Earn 1 point per $1 on all other purchases.
- Sign-up bonus: Earn 100,000 points after spending $15,000 in the first three months.
- Annual fee: $95
- Additional perks: No foreign transaction fees, travel insurance, and purchase protection.
This card is ideal for businesses with high spending in the advertising and travel sectors.
2. American Express® Business Gold Card
For those whose expenses vary from month to month, the American Express Business Gold Card offers flexible rewards that adapt to your spending habits.
- Rewards: Earn 4X points in the two categories where your business spends the most each month, up to $150,000 per year.
- Sign-up bonus: Earn 70,000 Membership Rewards® points after you spend $10,000 in the first three months.
- Annual fee: $295
- Additional perks: Access to American Express Travel, expense management tools, and no preset spending limit.
This card is perfect for growing businesses that require flexible spending power and top-tier rewards.
3. Capital One Spark Cash Plus
If you prefer simplicity and straightforward cash back, Capital One Spark Cash Plus is a fantastic choice.
- Rewards: Unlimited 2% cash back on every purchase.
- Sign-up bonus: Earn up to $1,000 in cash bonuses—$500 once you spend $5,000 in the first three months and another $500 after spending $50,000 in the first six months.
- Annual fee: $150
- Additional perks: Free employee cards, no foreign transaction fees, and travel and purchase protection.
This card is excellent for businesses that prefer cash back over points and don’t want to deal with category restrictions.
4. Brex 30 Card
The Brex 30 Card stands out because it doesn’t require a personal guarantee, which makes it a good fit for start-ups or fast-growing businesses.
- Rewards: Up to 7X points on rideshare, 4X on travel booked through Brex, and 3X on restaurants.
- Sign-up bonus: Earn 10,000 points after spending your first $3,000.
- Annual fee: $0
- Additional perks: Integration with accounting software, no foreign transaction fees, and discounts with business service partners like AWS and Google Ads.
If you’re a tech start-up or a small business looking for valuable perks and flexible rewards, Brex might be your best bet.
5. Bank of America® Business Advantage Customized Cash Rewards Mastercard®
For small businesses with variable spending, the Bank of America® Business Advantage card offers custom rewards to match your needs.
- Rewards: 3% cash back in a category of your choice (gas, office supplies, travel, etc.), 2% on dining, and 1% on all other purchases.
- Sign-up bonus: Earn a $300 statement credit after spending $3,000 in the first 90 days.
- Annual fee: $0
- Additional perks: Travel and purchase protections, online and mobile banking integration, and no annual fee.
This card is ideal for smaller businesses that want a no-frills, high-value rewards program without paying an annual fee.
FAQs About Business Credit Cards
- Can I use a personal credit card for business purposes?
Yes, but it’s not recommended. Business credit cards offer specific benefits tailored for businesses, like higher limits and better rewards for business expenses. Plus, keeping personal and business finances separate is essential for tax and legal reasons. - Do I need a business to apply for a business credit card?
Yes, you’ll need a registered business or sole proprietorship to apply. You’ll also need an EIN (Employer Identification Number) or your Social Security Number if you’re a sole proprietor. - How do business credit cards affect my personal credit?
Some business credit cards report to your personal credit, so late payments or high balances could impact your personal credit score. However, many cards, like Brex, do not require a personal guarantee, so your personal credit won’t be affected. - What is the best business credit card for startups?
The Brex 30 Card is often recommended for start-ups because it doesn’t require a personal guarantee and offers excellent rewards for growing businesses.
Conclusion
Choosing the best business credit cards depends on your business’s spending habits and what benefits matter most to you. Whether you prioritize cashback, points, or flexibility, there’s a card out there tailored to your business needs. Remember to review your options carefully, weigh the pros and cons, and pick a card that will help you manage your expenses and grow your business.
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