There are key steps you don’t want to overlook when starting a new business, and one is setting up your business financial systems to track business expenses, monitor cash flow and complete your taxes on time.
Business credit cards can be a great tool to manage business spending. Not only are credit cards the safest way to pay for purchases, they often offer excellent rewards and higher credit limits. They are also easier to get than small business loans for startups.
Here’s the good news. Many of the most business credit cards are available as soon as you start your business. That’s true even if you just start as a freelancer or independent contractor.
Why wait? Here’s how to get a first time business credit card.
Best First Time Credit Cards For New Businesses
Here are ten of the best business credit cards for small business owners starting a new business.
1. Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
With this card you can get 0% for 9 billing cycles on purchases. It also has a solid welcome offer: $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening. Plus it offers ongoing rewards of 3% cash back in the category of your choice (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), 2% cash back on dining purchases (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), and 1% cash back on all other purchases.
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2. Amazon Business American Express Card
If your business plans to shop on Amazon, the Amazon Business American Express Card has no annual fee. There’s a welcome bonus of a $200 Amazon gift card upon approval. This card offers cash back rewards of 1-5%, depending on the type of purchase.
All information about the Amazon Business American Express Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
3. Costco Anywhere Visa® Business Card by Citi
Costco Business shoppers will want to consider the Costco Anywhere Visa® Business Card by Citi. It’s especially valuable for fuel purchases. Costco is already known for its lower cost gas station prices. With this card:Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter. 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases..
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4. The Blue Business® Plus Credit Card from American Express
With 0% on purchases for 12 months from date of account opening this card can be helpful for financing start-up business expenses. And it offers a solid rewards program. Earn 2X points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. Terms and limitations apply.
The Blue Business® Plus Credit Card from American Express
A great business card for flexible spending and travel rewards points.
Pros
- Competitive intro APR offer and rewards rate
- No annual fee
- For a limited time, earn Membership Rewards® points on initial spending.
Cons
- Foreign transaction fee.
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5. Ink Business Unlimited® Credit Card
This card offers a trifecta of solid benefits. Get a 0% Intro APR on Purchases for 12 months Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.
And then earn ongoing rewards on all eligible purchases. Earn unlimited 1.5% cash back on every purchase made for your business.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
All information about the Ink Business Unlimited® Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
6. Ink Business Preferred® Credit Card
If you know you’ll have a chunk of startup expenses in your first three months, the Chase Ink Business Preferred® Credit Card has a very good welcome offer. New Cardmember Offer! Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening..
The annual fee is just $95 which can easily be offset by the sign up offer and ongoing points. Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
All information about the Ink Business Preferred® Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
7. BILL Divvy Corporate Card
The BILL Divvy Corporate Card combines a business credit card with a robust expense management platform. It can be especially useful if you plan to issue employee cards, as it offers free employee cards with excellent spend management tools. And it offers rewards: Up to 7% points, based on payment settings..
BILL Divvy Corporate Card
Eligibility based more on revenue, requires full repayments monthly.
Pros
- Free and flexible expense management platform
- No annual fee.
Cons
- No early spend bonus and lower rewards than other cards
- Must pay off all balances in full each month.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
8. Capital on Tap Business Credit Card
Another option for new small business owners, this card features a rewards rate of 1.5% unlimited cashback..
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9. U.S. Bank Triple Cash Rewards Visa® Business Card
Earn $500 in cash back if you spend $4,500 on the account owner’s card in the first 150 days after account opening. Earn 3% cash back on eligible purchases at gas and EV charging stations, office supply stores, cell phone service providers, and restaurants. And you can earn an annual $100 statement credit for monthly software service purchases such as FreshBooks or QuickBooks.
*All information about the U.S. Bank Triple Cash Rewards Visa® Business Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Features to consider when getting a new business credit card
When it comes to choosing the best business credit card for your new business, you’ll want to consider both costs and perks:
Annual fee
Annual fees on business credit cards range from nothing to hundreds of dollars. Higher annual fees are associated with premium cards with more benefits. Some cards waive the annual fee the first year, which an be helpful when you’re just starting out.
But higher fees can be well worth it, especially for businesses that charge a lot on their cards and earn significant rewards. A new startup business with relatively low expenses may want to start with a card with no annual fee, or a lower annual fee.
Intro APR
Most credit cards allow you to borrow money and repay that debt by making monthly payments. (Charge cards require payment in full each billing cycle.) Credit card interest rates typically run in the low double digits (in the range of a 14—22% variable Annual Percentage Rate depending on borrower qualifications). But cards with low intro APRs— including 0% introductory APRs— allow businesses the opportunity to finance purchases inexpensively for nine to twelve months or more.
Cash back rewards
Cash back is a popular credit card reward, as it’s easy for businesses to put cash back to good use. Some cards offer cash rewards as a specific percentage of eligible purchases; for example 1.5% cash back on all purchases. Others offer tiered cash back, with higher cash rewards purchases in certain spending categories like office supply stores or restaurants, for example.
Travel rewards
Travel rewards on business credit cards can be lucrative, and may include rewards points that can be redeemed for travel, as well as travel benefits like car rental insurance, status on airlines or hotels, access to airport lounges, free checked luggage on flights and more.
Sign up bonus
Many small business credit card offers feature sign up bonuses or welcome offers that allow the cardholder to earn bonus cash back or bonus points by spending a certain amount within a specific time period. (For example, earn $400 bonus cash back when you spend $3000 within the first three months after account opening.)
Other perks
Travel perks aren’t the only ones cards offer. Purchase protection, extended warranties, higher spending limits and free employee cards are just some of the other benefits offered by many business credit card issuers.
No personal guarantee
With a personal guarantee, the cardholder can be personally liable for the debt if the business can’t repay it. Most small business credit cards do require a personal guarantee (PG). A few small business credit cards and most corporate cards do not require a PG, but those cards are not typically available to new businesses as the business will need strong revenues to qualify.
Qualifying for beginner business credit cards
Here’s the good news. If you have good personal credit and sufficient income (not just from the business), you may qualify for many of the most popular small business credit card. That’s because many of these card issuers base approval on the applicant’s personal credit score, and income from all sources, which can even include household income that’s available to pay the debt.
Personal creditworthiness is a factor here; most cards require good to excellent personal credit scores.
How To Apply For A First Time Business Credit Card
The application process for a business credit card for a new business is similar to that of applying for a personal credit card. You’ll include personal information (name, social security number, address, phone number etc.). When you apply for a business credit card you’ll also be asked for information about the business, including the name of the business, Employer Identification Number (EIN) if available, business revenues or projected revenues.
Most business credit card issuers don’t check business credit, but they do report to business credit bureaus. That means using one of these cards responsibly can help you establish business credit.
How to get a business credit card as a new sole proprietor
If you operate your business as a sole proprietorship, freelancer, or independent contractor, you can apply for many of the most popular business credit cards. While a few credit cards are only available to businesses that are formed as an LLC or corporation, most are available to business owners who haven’t yet taken that step. With those cards, if you apply and don’t have an Employer Identification Number (EIN) you can list your social security number.
How to get a business credit card after setting up a new LLC
If you plan to form an LLC or a corporation (C corporation or S Corporation), you may want to wait until you have formed your business entity and received your EIN. When you start to build business credit in the name of your LLC or corporation, this will be helpful.
How to get a first time business credit card for a startup
You may be able to get a business credit card the day you start your business—even if it hasn’t made any money yet. Again, most credit card issuers will consider personal credit and income from all sources when evaluating credit card applications for business credit cards.
Why a business credit card may not be the best fit as a first time credit card at this time
If you qualify for a business credit card with good terms, it is often preferable to using a personal credit card for business purchases. However, if you are starting a business as a sole proprietorship or independent contractor and you plan to form a business entity, such as an LLC or corporation soon, you may want to wait until you form your business to get a business credit card.
Compare business formation services
Form an LLC, corporation, or nonprofit, and get an EIN, business license, or registered agent service. Use Nav to find the right business formation service for your business.
Frequently asked questions for first time business credit cards
Does my business need a business bank account to get a business credit card for the first time?
No, you do not have to have a business bank account in order to qualify for a business credit card. Some financial institutions that offer business checking accounts, also offer business credit cards. But for the most part you don’t need a business bank account to qualify for a business credit card.
Still, it’s best practice to open a business checking account when you start your business and use it for business expenses you don’t pay for with a credit card.
Can I get a business credit card on the same day as setting up my LLC?
Yes, if you qualify you can get a business credit card as soon as you establish your LLC, but you may want to make sure you’ve received your EIN so you can include it on the application. While an EIN is not required by most issuers, it can help ensure your account is properly matched with your business when payment activity is reported to business credit agencies.
Does an online business checking account hold as much weight as a traditional brick and mortar account for establishing new business credit?
Business checking accounts do not appear on business credit reports. Both online business checking accounts or bricks and mortar bank accounts can be used to apply for small business loans or business lines of credit.
What’s the best first time business credit card to get?
Use the recommendations in this article to help pick a first-time credit card. In addition, Nav can help you find a credit card based on your data and qualifications. Get started here.
Can I get startup business credit cards with no credit?
You don’t need a good business credit score to get a business credit card, but most issuers will check personal credit and require good credit or excellent credit to qualify. If you don’t have any personal credit history you may want to consider a secured credit card to help establish credit.
How can you separate business and personal credit?
Most business credit cards do not report to the owner’s personal credit as long as they don’t default on the debt. This can help protect the cardholder’s personal credit from the activity of the business. Many business credit cards do help build business credit by reporting payment history to business credit bureaus.
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler, a financing and credit expert, has been featured in 4,500+ news stories and answered 10,000+ credit and lending questions online. In addition to Nav, her articles have appeared on Forbes, MarketWatch, and Startup Nation. She is the author or co-author of six books, including Finance Your Own Business, and she has also testified before Congress on consumer credit legislation.