You will likely find a credit card in the pocket or purse of almost anyone you pass on the street these days. The number of credit cards issued in the United States has grown steadily over the past decade.
Although the United States saw 2020 consumer spending decline in the first few months of the pandemic, spending numbers are rising again. Businesses are starting to bounce back. Startups and experienced businesses are adapting to the changes and digital trends of the new economic climate – a large chunk of spending and investment will be used to meet them.
Business credit cards are one way businesses keep up with trends. Let’s take a look at some of the best business credit cards available to you today.
The Brex Card for Startups is specially designed for startups that do not have a substantial credit history but are well funded and looking to scale quickly.
In one look:
- Higher credit limits, limits 10 to 20 times higher than those of other traditional competitors.
- No start-up costs, annual fees or interest. Instead, Brex receives a small fee from traders for every purchase you make.
- No personal collateral with Brex – which means you, as an individual, won’t have to take responsibility for commercial debt. However, Brex requires that a minimum amount of money be available in a linked bank account to be eligible.
- The rewards are numerous. Brex users can earn points on purchases, depending on the category of spending. For example: 8x on carpooling, 5x on Brex trips, 4x on restaurants, 3x on recurring software and 1x on all other purchases.
- Unlimited users and cards are available for employees, with the ability to set limits.
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The Discover It Business credit card is a great option for small businesses that want world-class protection and service with their benefits.
In one look:
- Users will earn 1.5% unlimited cash back on all purchases made and on every dollar spent. With Cashback Match, Discover will match all cashbacks earned in the first year. For example, a $ 500 rebate becomes $ 1,000.
- There is no annual fee. With Discover It, there is an introductory 0% APR on purchases for the first 12 months. After that, the standard rates vary depending on the creditworthiness.
- Cash rewards. Your rewards never expire while your account is active. They can be redeemed at any time and used as cash on purchases on Amazon.
- Top notch service and security. The Discover mobile app is available to help users manage their accounts and rewards – with 24/7 customer support. If unauthorized purchases are made, users will be held liable for fraud of $ 0.
- Enjoy up to 50 employee cards with personalized spending limits, but purchases still count towards your rewards.
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The Capital One Spark Cash business credit card is for homeowners who want to earn on every purchase.
In one look:
- New members will receive a one-time cash bonus of $ 500 when they spend $ 4,500 on purchases made in the first three months.
- Cashback rewards. Members receive unlimited 2% cash back rewards on net purchases. There is no cap and these rewards can be redeemed with a credit to the account or a check.
- No initial annual membership fee. After the first year, the annual fee is $ 95, which is still low considering the potential for cash rewards.
- Superior account management. Transaction details, year-end summaries and purchase records are available. Import data in formats like Quickbooks and Excel.
- Take advantage of payment flexibility to make scheduling more manageable – you choose your monthly due date.
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Chase’s Ink Business Preferred Credit Card is another great option for those who value rewards.
In one look:
- After spending $ 15,000 on purchases in the first three months, new members receive 100,000 bonus points, or $ 1,000 in cash back.
- Earn more points. For every dollar spent on certain purchases (travel, shipping, advertising), members will earn three points: one point for every dollar spent on all other purchases. Points do not expire while the account is active.
- Better rewards. Points can be redeemed for cash back, travel, and even gift cards. If redeemed for travel, a member’s points are worth 25% more.
- Account monitoring is important. Members will benefit from purchase and fraud protection to protect their businesses.
- No foreign transaction fees for purchases made outside of the United States.
See it now at Chase
The American Express Blue Business Cash credit card is ideal for small business owners who want rewards on all purchases, regardless of expense category.
In one look:
- New members will receive the introductory 0% APR on purchases in the first 12 months, with no annual fee. Rates vary after the first year, depending on creditworthiness.
- Up to $ 50,000 per year, members will receive 2% cash back which will automatically be credited to the account statement on qualifying purchases.
- Flexible credit limits will help increase purchasing power when business needs arise. Expanding purchasing power allows members to spend beyond their credit limit in some cases – this adapts to card usage, payment history, and other factors.
- Account tools, such as the American Express Business app and year-end summary overviews, help you better manage your business account.
- Roaming members will benefit from rental car loss or damage coverage when rentals are purchased with the qualifying card.
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What are the advantages of business credit cards?
Business credit cards are for business spending and are for businesses of all shapes and sizes. Business credit cards have advantages not found among personal credit cards: higher credit limits and bonus rewards, for example.
Many choose to use business credit cards for a variety of reasons, including:
- Purchasing power: Many businesses, especially startups, benefit from the higher lines of credit available with business credit cards. To get a business off the ground, you have to spend money.
- Avoid personal expenses: Business credit cards allow you to separate personal and business expenses, which is a benefit at tax time.
- Commercial credit profile: Although personal credit scores are typically used at the start of applying for business credit cards, once approved, the business line of credit is separate from your personal credit report. This is an advantage if you plan to build a business credit history and an established line of credit to earn better rates in the future.
- Better protection: Many professional credit card companies offer purchase protection on qualifying purchases. This means that you are protected if these items are stolen, damaged or lost.
What’s the right business credit card for you?
As noted above, business credit cards have a variety of benefits and advantages for business owners, but not all credit cards have the same offers. It’s important to know your business needs before you can choose the right business credit card for you. Here are some things to consider before making your final decision:
- Interest rate: Comparing the interest rates on different cards for purchases is a necessity. While some credit card companies offer low introductory interest rates, the annual percentage rate may change after the introductory period.
- Fees and penalties: It is essential to know if a business credit card comes with an annual fee. Sometimes these fees can negate the benefit of possible rewards in a given year. The best credit cards have low annual fees or no annual fees at all.
- Possible rewards: Each company offers different rewards for members of their credit card. Some simply offer you lump sum rewards for every purchase you make, while others offer bonuses based on spending categories, and others offer cash back or points options. You need to decide what is right for your business.