Getting a good business credit card is a great way to build a business credit history and get some benefits and rewards along the way. But depending on your personal credit history, it can be tough to get the card you want.
Before you apply for any business credit card, it’s a good idea to check your credit score first. Once you know it, then you can apply for a card that you have a good chance of getting approved for.
To help you, we’ve put together a list of some of the best credit cards for each type of credit score on the spectrum.
Best for bad credit: Wells Fargo Business Secured Credit Card
If your credit score is between 300 and 579, or you’ve never used credit before, your best bet may be a secured credit card. Of the handful of business secured credit cards out there, the Wells Fargo Business Secured Credit Card is hands-down the best.
The card allows you to choose between 1.5% cash back on all purchases or 1 point per dollar on all purchases, plus 1,000 bonus points for every month where you spend at least $1,000.
Your credit limit will be equal to your security deposit, which can be between $500 and $25,000. The annual fee is $25 per card, which can get expensive if you add employee cards. But depending on how often you use it, the rewards can make up for the cost.
As you use the card responsibly over time, Wells Fargo will review your account periodically to determine whether to upgrade you to an unsecured account.
Best for fair or average credit:
The card doesn’t require a security deposit and offers unlimited 1% cash back on every purchase you make. There’s also no annual fee for you or on employee cards, as well as no foreign transaction fees on international purchases.
One thing to keep in mind, though, is that Capital One reports your card activity to both the commercial and personal credit reporting agencies. So if you rack up a high balance or miss a payment, it could ding your personal credit.
On the flip side, using the card responsibly can also help boost your personal credit score.
Another thing to consider is that the card has a high APR. In general, It’s always a good idea to avoid carrying a balance from month to month, but it’s especially the case with this one.
Best for good credit:
Business owners with a credit score between 670 and 739 have a lot more credit card options. In fact, most of the best credit cards for excellent credit are also available if you have good credit.
With such a wide selection, it’s tougher to nail down which card is the best, because a card that may work well for you may not work with other business owners in your area.
That’s worth $1,000 in free travel if you book the trip through Chase Ultimate Rewards.
Alternatively, you can transfer your points to one of Chase’s airline or hotel partners, potentially getting even more value out of them. This applies for the first $150,000 you spend on the following categories:
- Internet, cable, and phone services
- Advertising with social media and search engines
All other purchases net just 1 point per dollar. Other perks include primary rental car insurance, trip cancellation and interruption insurance, cell phone protection, and no foreign transaction fees. The card does, however, have an annual fee of .
Best for excellent credit:
- Airfare purchased directly from airlines
- U.S. purchases for advertising in select media (online, TV, radio)
- U.S. purchases made directly from select technology providers of computer hardware, software, and cloud solutions
- U.S. purchases at gas stations
- U.S. purchases at restaurants
- U.S. purchases for shipping
All other purchases will net you just 1 point per dollar. There’s no pre-set spending limit on the card, giving you more flexibility with how much you can spend.
When it’s time to redeem your points, you have a lot of options, including getting gift cards or cash back, booking travel, or transferring them to airline and hotel partners. If you redeem them for flights through Amex Travel, though, you’ll get 25% of your points back.
However, The card also provides several business-related benefits, including:
- Up to one year free of G Suite basic for three users
- Up to one year free of Zip Recruiter Standard
- The option to pay certain purchases over time
- Spend Manager, which allows you to add notes and receipts to your transactions
- Direct import into Quickbooks
- Year-end spending summary
- Free employee cards
Keep in mind, though, that the card charges a annual fee. But if you take advantage of the card’s benefits, you could get far more value than that in the first year alone.
Picking the right card for you
Knowing your credit score is an important component of getting the right credit card for your business. But also knowing what you want in a card can help you make the right decision.
Take some time to research these cards and compare them to other top business credit cards in the same credit range. This process can take time, but it’s well worth it if you’re able to get more value in the long run.
Ready to see your credit data and start building better business credit? Check Your Personal and Business Credit For Free (No Credit Card Required).