You won’t need to sort through your personal credit card statements at the end of each year to figure out if that lunch was a business meeting or not. It’s also great for earning rewards on business expenses. Plus, it’s often useful to have access to a credit line for times when you need extra cash, but haven’t been paid yet.
How to Find the Best Business Credit Cards for Your Situation
Before you choose a credit card, make sure to do your research. You can check your credit reportfor free at AnnualCreditReport.com to look at your credit history. You get one free report a year from each credit-reporting agency (Equifax, TransUnion, and Experian), so take advantage!
Some credit cards give travel rewards points while others give cash back.
One card may not be better than another — it’s all about figuring out what’s best for your individual business.
If you tend to travel a lot, a travel rewards card might be a better choice. However, if you aren’t a traveler, you may want to go with a cash back card.
There are more business credit cards than I could ever review in this article, so I picked four that I like for different reasons. These should give you a sense of the pros and cons to look out for in a business credit card:
1. Chase Ink Business Preferred
Chase Ink Business Preferred is a new business credit card that allows you to earn three points per dollar on the first $150,000 spent in purchases related to travel, shipping purchases, internet, cable, phone services, and advertising on social media sites and search engines each year.
I’m a big fan of Chase cards because of the access to Chase Ultimate Rewards. This allows you to book travel with points on the travel portal or have them transferred to a number of travel partners, many with a one-to-one ratio. You can even pay with points on Amazon.
This card has no foreign transaction fees, and employee cards have no additional costs. You can also earn 80,000 bonus points if you spend $5,000 in the first three months. The Chase Ink Business Preferred card has a $95 annual fee and a 16.99 to 21.99 percent variable APR.
2. American Express Blue Business Plus
The American Express Blue Business Plus credit card offers a zero-percent introductory APR on purchases and balance transfers for 15 months. After that, it has a 12.24 to 20.24 percent variable APR.
Cardholders can take advantage of AmEx’s expense management tools, such as using ReceiptMatch to easily categorize purchases, connect to a business’s QuickBooks account, and authorize an account manager. Cardholders also have access to the OPEN Forum, an online community to share ideas and receive advice on managing a business.
Employee cards are issued at no extra cost, and all cards can earn two membership rewards points per dollar on the first $50,000 spent each year and one point per dollar after that. Points can purchase travel through the Membership Rewards travel portal, be transferred to travel partners, or be used for gift cards or on Amazon. This card has no annual fee.
3. CitiBusiness/AAdvantage Platinum Select World Mastercard
As with credit cards, many people have a favorite airline. The CitiBusiness/AAdvantage Platinum Select World Mastercard offers cardholders preferred boarding and one free checked bag on domestic American Airlines (AA) flights for up to four travel companions on the same reservation.
The card has no foreign transaction fees, and cardholders can earn two miles per dollar spent on select business categories such as gas stations and AA purchases, and one mile per dollar on all other purchases. Earn one Companion Certificate each year after spending $30,000 in one year. You can also earn 60,000 AAdvantage bonus miles after spending $3,000 in the first three months of opening the account. The standard variable APR is 16.74 percent for purchases and 21.24 percent for cash advances. This card has a $95 annual fee that is waived in the first year.
4. Capital One Spark Classic
A business owner without great credit can check out the Capital One Spark Classic credit card, which has no annual fee. While it doesn’t have all the bells and whistles that other cards have, it offers one percent cash back on all purchases without an upper limit. Capital One Spark Classic helps cardholders build credit by using the card responsibly. As a result, it has a higher variable APR than the other cards, at 23.99 percent for purchases, transfers, and cash advances. Employee cards don’t cost extra, and there are no foreign transaction fees. Cardholders can download the statements using QuickBooks, Quicken, or Excel formats to track business expenses easily.
The Bottom Line
Of course, these are only a few choices for business credit cards. Before you make a decision, make sure to do your research and see which card might work best for your business!