A business credit card is still a valuable tool for gaining access to the revolving credit you need to run your business more efficiently while also earning cash back or points rewards and other valuable perks to help you and your business get started. You can keep your business and personal finances completely separate if you use the right mix of business credit cards. In this guide, we are going to carefully analyze the top business credit card to use for either a new business or with bad credit and no personal guarantee. let’s run along!
What Is a Business Credit Card?
Business credit cards are similar to personal credit cards, but they are designed specifically for business needs. They can offer businesses rewards for everyday spending, help cover expenses, and aid in the development of business credit, making it easier to borrow in the future and qualify for a lower credit card APR. Furthermore, any revenue-generating endeavor may be considered a legitimate business for a business credit card. You may be eligible to apply even if you do not have a registered LLC or corporation.
How do Business Credit Cards Work?
In practice, business credit cards function similarly to consumer credit cards in that you are approved for a specific credit limit that serves as your spending limit. As you make purchases, your available credit decreases, and as you pay those purchases off, it increases. Some business credit cards also require a personal guarantee from the business owner, which means that the owner promises to pay the credit card balance if the company cannot repay its debts.
Business credit cards often come with additional perks and upgrades depending on the type of card you choose. These can include business credit card rewards, which are frequently tailored to the categories in which businesses spend the most, such as office supplies, dining, and travel. Typically, the rewards are in the form of cashback or travel miles.
Types of Business Credit Cards
Spend some time determining the best type of small-business credit card for your company so that you can reap the most benefits. Here’s a rundown of the various types of business credit cards and how they might appeal to you based on your business goals:
#1. Small business cards
A small-business credit card is a type of consumer credit card designed for small-business owners (like solo entrepreneurs, and freelancers). These cards are typically obtained based on the business owner’s personal credit (though you can open a small-business card to help you build your business credit) and offer rewards for everyday purchases made within their small business.
#2. Corporate credit cards
The business entity, not the individual business owner, receives a corporate credit card (or owners). The business entity is responsible for all charges made on a corporate card. This type of business card is typically issued only to large corporations with established financial histories and solid business credit scores. This type of card may be best for your company if you have a large number of employees and frequently conduct large transactions in your day-to-day business operations.
Easiest Business Credit Cards to Get for New Businesses
#1. Chase INK Business Preferred
The Chase Ink Business Preferred® credit card provides generous ongoing rewards across a variety of spending categories. Because you can earn 3x points per dollar spent on online advertising, it’s an excellent option for new businesses that need to advertise on social media sites like Google and Facebook. Additionally, you will earn 3x points per dollar spent on travel, shipping, internet, cable, and phone services. Earn 3x points per dollar on the first $150,000 spent in combined purchases in the above-mentioned categories, then earn 1x point per dollar once the cap is reached. It also has a low annual fee of $95 and a sizable introductory bonus.
#2. American Express Blue Business Cash
Because it provides instant card numbers upon approval, American Express Blue Business CashTM is our most popular instant approval business credit card. To be approved, you must have a good to excellent personal credit score—but you can qualify even if you don’t have a business credit history. It gives you more purchasing power by allowing you to spend above your credit limit based on your credit history, card usage, and payment history.
It provides 2% cash back on all eligible purchases up to $50,000 per calendar year, followed by 1%. The cash back is automatically credited to your account.
#3. Capital One Spark Cash Select
Capital One® Spark® Cash Select Good Credit is designed for good-credit business owners who want to earn fixed-rate cash back without having to track spending categories. It has no annual fee and gives you 1.5% cash back on all business purchases.
If you need to make a large purchase, you can take advantage of its 0% introductory APR for the first 12 months after opening an account. It’s important to note that the 0% APR does not apply to balance transfers. It also does not provide a sign-up bonus.
#4. Chase Ink Business Unlimited
Because of its fixed-rate cash back of 1.5% on all purchases with no spending categories, Chase Ink Business Unlimited® ranks first on our list of the best credit cards for new businesses with no credit history. In addition, new business owners can benefit from interest-free financing on purchases for the first 12 months of card membership.
It has no annual fee and a $750 sign-up bonus if you spend $6,000 in the first three months. Through Chase Ultimate Rewards, you can redeem your points for cash back, gift cards, travel, and merchandise.
#5. Capital One Spark Miles
If you have excellent credit and frequently travel for business, consider Capital One Spark Miles for Business. The Spark Miles card offers unlimited 2x miles with every purchase and 5x miles on Capital One Travel rental car and hotel bookings.
You can also earn 50,000 bonus miles if you spend at least $4,500 in the first three months. You’ll pay no annual fee for the first year, then $95 per year after that.
#6. First National Bank of Omaha Business Edition
The First National Bank of Omaha Business Edition® Secured® Visa Card has the highest credit limit of any secured credit card on this list, ranging from $2,000 to $100,000. Your limit will be determined by your security deposit, which should be 110% of the amount you want to borrow. For example, if you require a $100,000 limit, your security deposit should be $110,000.
Keep in mind that, while the card has a low annual fee of $39, it does not offer a sign-up bonus or ongoing rewards on purchases. However, according to the deposit account agreement, you will earn interest on your security deposit.
#7. SVB Innovators Card
Silicon Valley Bank (SVB) created the SVB Innovators Card* with early-stage businesses in mind. To be eligible for the card, you must have a business banking account with SVB. There is no annual fee or fee for cards you want to distribute to your employees, in addition to not requiring a personal guarantee. Because it is a charge card rather than a credit card, you must pay in full by the due date, and there is no APR because you will not be revolving any debt.
The SVB Innovators Card also includes a business rewards program, where you can earn 2X points for every dollar spent and redeem points for statement credits.
#8. U.S. Bank Business Triple Cash Rewards World Elite Mastercard
The U.S. Bank Business Triple Cash Rewards World Elite Mastercard® is an excellent choice if you need to make a large purchase to start a business or transfer a balance from another card. After opening an account, you can take advantage of interest-free financing on both purchases and balance transfers for 15 months.
Easiest Business Credit Cards to Get With Bad Credit
#1. Capital One Spark Classic
For business owners with fair credit, the Capital One Spark Classic for Business is an excellent option. Without good credit, it is typically difficult to obtain an unsecured business credit card. The Capital One Spark Classic is an unusual exception in that there is no deposit required and no annual fee.
The card provides a simple cash-back program as well as useful benefits for business owners such as free employee cards, no foreign transaction fees, year-end summaries, and purchase records that can be downloaded in a variety of formats.
#2. Bank of America Business Advantage Unlimited Cash Rewards
This is a good option for business owners with bad credit who are willing to put down a deposit to secure a credit line.
The Business Advantage Unlimited Cash Rewards Secured requires a $1,000 security deposit. If you are approved, it will become part of your credit line. Later, as your credit score improves, Bank of America may upgrade you to an unsecured card.
#3. Union Bank Business Secured Visa
This is an excellent option for business owners who intend to carry a balance on their business credit card but have less-than-perfect credit.
In general, credit cards for bad credit do not provide a 0% APR introductory period. The Union Bank Secured Visa, on the other hand, is an exception. Cardholders can benefit from no interest on purchases for the first six billing cycles, after which the variable-rate purchase APR kicks in. It is an excellent option for people with bad credit.
#4. Discover it
The Discover it® Secured Credit Card is ideal for business owners who want to establish personal credit.
Because a card issuer may investigate your personal credit when you apply for a business credit card, improving your personal credit score can help you qualify for more lucrative business cards. The Discover it Secured is one of the best credit-building cards on the market.
Easiest Business Credit Card to Get With no Personal Guarantee
#1. Brex 30 Card
The Brex 30 Card not only does not require a personal guarantee, but it also comes with an excellent rewards program. Cardholders with a Brex Cash account who use their card on a daily basis can earn 8X points on rideshares, 5X points on travel booked through Brex Travel, 4X points on restaurants, 3X points on eligible Apple purchases made through the Brex Rewards Portal, 1.5X points on ads, and 1X points on everything else. Because it is a charge card, you cannot rotate balances and there are no hidden fees. You will also not be charged an annual fee.
#2. Ramp Corporate Card
A credit check or personal guarantee is not required for the Ramp Corporate Card*, which is also a charge card and one of the easiest business credit card to get. It also has no hidden fees, such as annual fees, foreign transaction fees, or setup fees. You’ll also get an unlimited number of physical and virtual cards, all of which can be monitored and locked in real-time.
The Ramp Corporate Card earns a flat 1.5X points on all purchases, making it ideal for business owners who don’t want to keep track of bonus categories or meet specific requirements to earn rewards. This is one of the best and easiest business credit card to get with no personal guarantee.
#3. Sam’s Club Business Mastercard
It is the best wholesale club card available without a personal guarantee. Incorporated businesses that meet certain criteria, such as having been in business for more than two years and having at least $5 million in annual sales or revenue, can apply for the Sam’s Club Business Mastercard without a personal guarantee. Although this card provides rewards, including up to 5% back on gas, they are earned in the form of Sam’s Cash and can only be used at Sam’s Club. This is also one of the best and easiest business credit card to get with no personal guarantee.
What is the Easiest Unsecured Business Credit Card to Get?
Capital One Spark Classic for Business is the easiest unsecured business credit card to obtain because it does not require a deposit and is designed for business owners with limited or no personal credit. Capital One Spark Classic also has 1 – 5% cash back on purchases and has no annual fee.
How do I Get Business Credit ASAP?
How to Build Business Credit Fast: 5 Easy Steps
- Step 1: Select the Best Business Structure.
- Step 2: Obtain a Federal Tax Identification Number (EIN)
- Step 3: Establish a Business Bank Account
- Step 4 – Establish Credit with Reporting Vendors/Suppliers
- Step 5: Keep an eye on your company’s credit reports.
Which is the Easiest Credit Card to Apply?
Because there is no credit check for new applicants, the OpenSky® Secured Visa® Credit Card is the easiest credit card to get approved for.
Which Company gives Credit Card Easily?
The Blue Cash Preferred® Card from American Express is the best credit card for immediate use.
Can I get a Business Loan with Poor Credit?
If you have bad credit, it may limit your options for business financing. Certain lenders, fortunately, offer bad credit business loans to those with credit scores as low as 500. Lenders use your credit score to determine your creditworthiness; the lower your score, the greater the risk.
What is the Minimum Business Credit?
Most small business lenders prefer a business credit score of 75 or higher, but local lenders may accept lower scores for small businesses or startups. Individuals with credit scores below 500 are rarely approved for loans by traditional consumer finance companies.
Conclusion
Credit can be difficult to obtain for new businesses and startups, but revolving credit in the form of a credit card does not have to be. Business credit cards frequently provide options for startups, such as introductory APRs that can help finance large purchases or simply easy operations with convenience and rewards. Separating personal finances from business operations with a credit card is a great way for freelancers and sole proprietors to simplify tax season. Before applying, carefully consider your options and which benefits, rewards, and rates are best for you and your company.
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