Running a business, no matter its size, requires smart financial management. One of the best ways to streamline your expenses, earn rewards, and even build business credit is through the right business credit card. But with so many options out there, how do you know which is the best business credit card for your needs?
In this guide, we’ll walk you through everything you need to know about the best business credit cards available, their perks, and how they can help you boost your business. Whether you’re a startup or a well-established enterprise, there’s a card for every business owner.
Why Do You Need a Business Credit Card?
Before diving into the best business credit cards, it’s crucial to understand why having one is essential for any business. Here’s why you need one:
- Separation of personal and business expenses: Keep your business finances organized and avoid the headache of mixing personal spending with business transactions.
- Credit-building opportunities: Business credit cards help establish and build your business credit score, which can be crucial when securing loans or larger lines of credit.
- Rewards and perks: From cashback to travel rewards, business credit cards offer incentives that can save you money and give you valuable perks like travel protection and free employee cards.
- Expense management tools: Most business credit cards offer advanced tracking tools, which make it easier to monitor business spending and manage cash flow.
What to Consider When Choosing a Business Credit Card
Now that you’re convinced you need one, what should you consider when selecting the best business credit card? It’s not one-size-fits-all, so here are some factors to weigh before making your choice:
- Annual fees: Some business credit cards come with steep annual fees, while others don’t charge at all. Make sure the rewards and benefits justify the fee.
- Rewards structure: Consider whether you’ll benefit more from cash back, travel points, or specific category rewards such as gas, office supplies, or dining.
- Introductory offers: Many cards come with enticing sign-up bonuses or 0% APR for the first few months. If you plan on making significant purchases upfront, this could be a key factor.
- Credit requirements: While many business credit cards require good to excellent credit, there are options for those with less-than-perfect credit.
- Employee cards: Look for a card that offers free employee cards and the ability to track employee spending.
- Customer service and protections: Choose a card with excellent customer service and additional protections like fraud monitoring or purchase insurance.
The Best Business Credit Cards in 2024
To help you make an informed decision, we’ve compiled a list of the best business credit cards available today, categorized by different business needs. Whether you’re after travel rewards or cash back, we’ve got you covered!
1. American Express Business Gold Card
If your business involves a lot of travel or purchases in various categories, this card is a solid choice.
- Annual Fee: $295
- Rewards: 4X points on the top two categories where your business spends the most each billing cycle (from a list including airfare, advertising, gas, and dining).
- Intro Offer: Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases in the first three months.
- Why It’s Great: It offers flexibility in how you earn rewards and can be ideal for businesses with varied expenses.
2. Chase Ink Business Preferred® Credit Card
For businesses looking for travel perks and high rewards for common business expenses, this card stands out.
- Annual Fee: $95
- Rewards: 3X points on the first $150,000 spent on travel, shipping, advertising purchases made with social media sites, and internet/cable services.
- Intro Offer: Earn 100,000 bonus points after you spend $15,000 in the first three months.
- Why It’s Great: It offers one of the highest sign-up bonuses and the points can be transferred to popular travel partners.
3. Capital One Spark Cash for Business
Straightforward and rewarding, this card is ideal for businesses wanting cash back on all purchases.
- Annual Fee: $150 (waived in the first year)
- Rewards: Unlimited 2% cash back on every purchase.
- Intro Offer: 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.
- Why It’s Great: No categories to worry about; you earn cash back on everything.
4. Bank of America® Business Advantage Customized Cash Rewards Mastercard®
A flexible card for businesses that want to maximize cashback in the categories that matter most to them.
- Annual Fee: $0
- Rewards: 3% cash back in one of your chosen categories (gas, office supplies, travel, etc.), 2% on dining, and 1% on everything else.
- Intro Offer: $300 statement credit after you spend $3,000 in purchases in the first 90 days.
- Why It’s Great: Customizable rewards categories make it perfect for businesses with specific spending habits.
5. Brex Card for Startups
Brex is an excellent option for new or growing businesses that might not have a long credit history.
- Annual Fee: $0
- Rewards: 7X points on rideshare, 4X on Brex travel, 3X on dining, 2X on software purchases.
- Intro Offer: Up to 50,000 bonus points for signing up and spending within 30 days.
- Why It’s Great: No personal guarantee is required, and it’s designed for startups looking to grow.
FAQs About Business Credit Cards
- Can I get a business credit card if I don’t have an established business?
Yes! You don’t necessarily need an LLC or corporation to get a business credit card. Many sole proprietors, freelancers, and gig workers qualify. Just be honest about your income and business structure when applying.
- How do business credit cards impact my personal credit?
Most business credit cards require a personal credit check during the application process, and any missed payments or defaults can affect your personal credit score. However, day-to-day spending on the card generally won’t be reported to personal credit bureaus.
- Can I use a personal credit card for business expenses?
While you can use a personal credit card for business expenses, it’s not recommended. Mixing personal and business finances can lead to bookkeeping headaches, missed tax deductions, and complications when applying for business financing.
- What’s the difference between business and personal credit card rewards?
Business credit card rewards are usually tailored to common business expenses like office supplies, travel, and advertising, whereas personal cards often focus on groceries, dining, or entertainment. Business credit cards also often come with features like expense tracking and employee cards.
- Are business credit cards tax-deductible?
The fees, interest, and expenses on your business credit card may be deductible, but always consult a tax professional for advice on what you can claim.
Conclusion: Find the Best Business Credit Card for You
Finding the best business credit card is all about understanding your business’s spending habits, cash flow needs, and long-term goals. Whether you’re looking to maximize rewards, earn travel points, or simply manage your expenses better, there’s a card that fits your needs. Remember, though, that every business is different—what works for one may not be ideal for another.
Now that you have the insights, it’s time to compare your options and choose the best business credit card to fuel your success.
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