The top business credit cards for startups provide 0% APR incentives, no annual fees, and exceptional rewards. The best startup credit cards also base approval choices on applicants’ personal creditworthiness, so you don’t have to be established to get a good deal. Businessyield’s editors examined 1,500+ credit card offers to determine the best business credit cards for startups in the most popular categories.
Best Business Credit Cards for Startups
We’ve categorized seven fantastic business credit cards for startups to assist you to choose the best credit card for your business. Keep in mind that the terms of the card offer on this page are subject to change, and as always, terms and conditions apply.
#1. Spark Classic for Business by Capital One: Excellent for fair to good credit
The Capital One Spark Classic for Business is a business credit card that provides 1% cash back on all purchases and 5% cash back on hotel and rental car reservations made via Capital One Travel. While many business credit cards require outstanding credit, this card is more accommodating. There are no foreign transaction fees and only a $0 annual charge.
#2. U.S. Bank Business Platinum Card: with an extended 0% intro APR offer
A 0% APR credit card may be a fantastic alternative if you are searching for startup financing. The features a good initial APR: 20 months of 0% APR on new purchases and balance transfers, with a 3% balance transfer charge. Following that, the usual variable APR ranges from 11.99% to 20.99%. It has Visa Spend Clarity to help you track and manage your spending, and there is no annual charge with this card.
#3. Amazon Prime Business Card from American Express
If your business will frequently shop on Amazon, AWS, or Whole Foods, consider the Amazon Business Prime American Express Card. An intriguing perk for startups is the ability to choose between a longer time to pay when cash flow is tight or a high cashback rate when paying swiftly on certain items.
With a qualified Prime membership, you can get 5% back or 90-day terms on purchases made in the United States at Amazon.com, Amazon Business, AWS, and Whole Foods Market. Each calendar year, you will get 5% Back on the first $120,000 in purchases and 1% Back on all subsequent purchases. 2% cash back at US restaurants, gas stations, and wireless phone services purchased straight from US service providers. 1% cash back on all other purchases.
#4. Citi Visa® Business Card Costco Anywhere: Save money on gas with
If your business requires you to travel regularly, you may benefit from a petrol rewards credit card. Citi’s Costco Anywhere Visa® Business Card is a good pick. Costco is already a popular destination to fill up on gas because of its low prices.
Save even more with general cash-back benefits for fuel purchases: 4% cash back on qualified gas and EV charging expenditures up to $7,000 per year, then 1% beyond that. 3% cash back on eligible restaurant and travel purchases. 2% cash back on any other Costco and Costco.com purchases. All other purchases earn 1% cash back. With a paid Costco membership, there is no yearly charge.
#5. American Express Delta SkyMiles® Gold Business Card: Excellent airline rewards card sign-up bonus
If you frequently fly Delta, you should consider a Delta co-branded credit card, which allows cardholders to earn points toward flights, priority boarding, free checked bags, and other benefits. If you’re searching for a substantial welcome bonus, the Delta SkyMiles® Gold Business American Express Card can be highly rewarding.
#6. Blue Business CashTM Card from American Express: Reliable cash back incentives and a welcoming offer
The American Express Blue Business CashTM Card combines strong cash-back benefits with a cash-back introductory incentive, making it an excellent overall pick. It also has a variable spending restriction. Amex explains it as follows: “Your business is continuously changing, from workflow to inventory to floor plans. That’s why you have the ability to spend above your credit limit with Expanded Buying Power.
Keep in mind that the amount you can spend above your credit limit is not limitless. It adjusts based on your Card usage, payment history, credit history, financial resources known to American Express, and other factors.
#7. Bank of America® Business Advantage Customized Cash Rewards Mastercard®
This card has something for everyone: a 0% introductory APR offer, a generous cashback program with a high cashback rate in your preferred category, and a welcome offer of a $300 statement credit online bonus after you make at least $3,000 in net purchases in the first 90 days of your account opening. All for the low annual charge of $0.00.
How Can You Make the Most of Your Business Credit Card?
Not all cards are created equal. You should select the one that best meets the requirements of your new business. If you travel frequently, for example, you might want to choose a card that gives exceptional travel rewards, such as points redeemable for airline or hotel stays. Sign-up bonuses or bonus points for specific sorts of expenditure (such as dining out) can provide even more value in the first year.
Cash-back rewards are particularly popular because you can spend the money however you choose. Some cards, such as the American Express Blue Business CashTM Card, provide cash back on all eligible transactions, with a high annual cashback cap.
Other cash-back cards may provide more cash-back returns in specific areas, such as gas stations or office supply retailers. Try to anticipate your spending to ensure you get the proper card, but keep in mind that if your needs alter, you can look for a new card.
If you wish to transfer existing debt from a high-interest loan or credit card, seek a card with a low-interest rate or a 0% introductory APR offer. Most credit cards have variable APRs, and the rate is determined in part by the applicant’s creditworthiness. Make sure to make your credit card payments on time if you opt to take advantage of a 0% APR introductory rate. If you pay late on your business credit card, most credit card companies have the right to boost your interest rate. Keep track of when your credit card payments are due, or even better, set up automated payments.
Read Also: Best Business Credit Cards For Bad Credit In 2022
A business credit card can also be an excellent tool for a newer business to establish credit. Solid payment history will help you establish the ability to make timely payments—one of the first steps to building a good business credit profile—if the card reports to the business credit bureaus (not all of them do) (even if your credit is less-than-perfect right now).
Choosing the correct rewards card will allow you to leverage your existing purchases to earn rewards, discounts, or cash back. Before you click the apply now button, consider the benefits against the card’s cost. Premium cards, such as gold or platinum cards, have higher yearly fees but deliver higher-tier rewards. Even within specific issuers (such as Bank of America, Chase, or CapitalOne), you’ll find a variety of business credit card programs.
How to Choose Business Credit Cards Startups
The sheer quantity of credit cards that offer rewards for business expenditures can be overwhelming. After all, there are numerous rewards credit cards available today, but some are far superior to others.
These pointers can assist you in selecting the best card for your needs and goals.
- Choose the sort of incentives you want to get. While some credit cards offer cash back, some offer transferable points that could be worth far more than the conventional cash-back reward card. Keep in mind the many redemption methods and the value you might earn for your points.
- Examine the credit card reward categories. What types of purchases do you intend to make using your credit card? Make sure you can take advantage of any bonus categories your new credit card provides, such as advertising, office supplies, meals, or vacation.
- Compare fees, including annual fees, to ensure that the points earned from the card will cover the cost of having it.
- Examine the various cardholder benefits you may be eligible for. Free employee cards for your business account, purchase protection against damage or theft, extended warranties, and travel insurance protections such as travel accident insurance and luggage delay coverage are just a few examples. You may also notice privileges that facilitate travel, such as airport lounge access or elite status.
What is the fastest way to get business credit for an LLC?
Applying for net terms with vendors and suppliers is one of the simplest ways to develop business credit. When you use credit to purchase supplies, inventory, or other goods, the purchases and payments are recorded to business credit reporting bureaus.
Why should startups use business credit cards rather than a personal credit card?
The following are three main benefits of utilizing a business credit card for business purchases:
- You may keep your personal and business costs separate by using a business credit card. You’ll be able to track business expenditures more readily, making tax season and maintaining a firm budget much easier.
- By obtaining a card in your company’s name, you will begin to develop a separate business credit score from your personal credit score. That means that if you have to make a late payment, your business credit will suffer rather than your personal credit (exceptions exist—read about which business credit cards report to personal credit bureaus here).
- As you begin to construct a business credit profile, you will increase the trustworthiness of your business. When it comes time to apply for additional business finance, having a strong business credit score can help you qualify for more funding at lower interest rates.
When compared to business debit cards, checks, or cash, business credit cards provide stronger fraud protection.
Some entrepreneurs may be hesitant to take credit because they are fearful of becoming indebted. In such instances, for certain new businesses, a business charge card may be the finest business credit card option. Charge cards must be paid in full each month, making them a good alternative to business credit cards for startups that allow you to carry a balance from month to month.
According to a 2017 poll done by the National Small Business Association, business credit cards are the second most common source of funding for small businesses. Determine which form of business credit card you require and join the ranks of entrepreneurs whose knowledge of this crucial resource continues to play a vital part in their success.
How Can You Build Business Credit For Startups?
You will build business credit if you use a credit card that discloses your balance and payment history to business credit bureaus. This means you pay your bills on time and have little or no debt.
Because sole proprietorships do not create business credit, you must be incorporated and use your EIN. Another strategy to establish business credit is to open a business bank account. In addition to using credit cards, it is beneficial to build a credit history with other vendors and suppliers who record your payment information to business credit bureaus. Finally, you should keep an eye on your business credit reports to ensure the information is correct and up to date.
Conclusion
The finest business credit card for your startup is one that is suited to your specific requirements. Choose a card that offers lucrative rewards for all expenses and interest-free choices on large purchases. Check out our list of the top small business credit cards for more possibilities.
Business Cards For Startups FAQs
Do startups need business cards?
If you are a small startup seeking to rub shoulders with the elite, investing in business cards just to appear prepared in meetings may be worthwhile.
Can you get a business credit card with no revenue?
Lack of business revenue is not always a deal breaker when applying for a business credit card. Applicants can enter $0 as revenue if they can later list personal income in the application.
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