Finding the right rewards credit card, including cash back credit cards, for your business can be challenging. Earning cash rewards on what you’re already spending can be a great idea for a small business owner. If you shop at wholesale clubs a lot, it’s worth taking a look at credit card offerings from Sam’s Club vs. Costco.
This credit card review compares the Sam’s Club Business Credit Mastercard and the . Learn what kind of business would best fit these cards, the differences between the two, and the pros and cons of each to help you figure out which one would be the best fit for your business needs.
Types of Businesses That Would Benefit From Having These Cards
There are many types of business credit cards out there. A store card can be a great addition if you already shop at that store and make eligible purchases since you can earn rewards on what you’re already spending, and the same is true with both of these cards.
A small business owner that already has a membership with one of the wholesale clubs supported by the credit cards would benefit the most from one of these credit cards. You have to pay for a membership to the warehouse club every year. So even though there’s no annual fee for the card itself, it would help if you already pay for a wholesale membership to decrease the cost of the card.
Additionally, you’ll earn the highest rewards on eligible gas purchases with both of these cards. If your small business pays for a lot of gas station purchases, one of these cards can be especially helpful.
Differences Between the Costco and Sam’s Business Credit Cards
Let’s break down the differences between these two credit cards to help you decide which one might be the best credit card for your business.
- Purchase APR:
- Annual fee:
- Rewards rate:
- Foreign transaction fee:
- Sign-up bonus:
- Card issuer: Citi Bank
- Annual fee is
- Cardholders earn unlimited cash-back rewards
- The card acts as your Costco membership card
- Must pay annual Costco membership fee of between $60 (Gold Star and Business) and $120 (Executive Membership) at the time of writing
- Cash-back comes in the form of an annual credit card reward certificate, which means you’ll have to wait to get your rewards.
- No sign-up bonus at the time of writing
The Sam’s Club Business Mastercard
- Purchase APR: 20.15% to 28.15%
- Annual fee: $0
- Rewards rate: Earn 5% back on the first $6,000 at gas stations, then 1%. 3% back on Sam’s Club purchases for Plus members (Club members earn 1%) and on dining and takeout. 1% back on all other purchases.
- Foreign transaction fee: N/A
- Sign-up bonus: $30 statement credit if you make $30 worth of purchases at Sam’s Club in the first 30 days of account opening (these rewards change periodically, but this is the case at the time of writing).
- Card issuer: Synchrony Bank
- Earn Sam’s Cash for using card
- Sign-up bonus available at the time of writing
- Cardholders can use rewards within one to two billing cycles after being earned
- Credit card works as your Sam’s Club member card
- Earn a maximum amount of Sam’s Cash of $5,000 per calendar year
- Must pay for annual Sam’s Club membership of $50 (Club Membership) or $110 (Plus Membership)
*All information about the Sam’s Club Business Mastercard 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.
Credit Scores Needed for the Sam’s and Costco Business Credit Cards
Your personal credit score is one aspect of your application that credit card providers consider when you apply. Because it’s not the only consideration, there is no set-in-stone credit score that you need to qualify for either of these cards. Credit card providers also look at factors like your total income (not only business income) when considering your application.
With that said, most business credit cards require applicants to have good credit to excellent credit scores to qualify. Good credit usually means a FICO credit score of between 671 and 739, and excellent credit is 740 or higher. While some cards are available for applicants with credit scores of 650 or higher, it will likely be a challenge to get a business credit card if your score falls at 650 or lower. Working on improving your credit is your best bet toward qualifying for a business credit card.
Nav’s Verdict: What’s Better for Your Business, Costco or Sam’s Club?
Choosing between these two business credit cards might be tricky, or it might be obvious. Each credit card offers similar but slightly different benefits. If you already prefer to shop at one of the wholesale stores and don’t intend to switch to the other, you’ll probably want to pick the card for the store you already shop at.
If you don’t have a wholesaler preference and you want to maximize your rewards with one of these two cards, themight be the best bet because it doesn’t cap your annual rewards like the Sam’s Club card does. This is especially true for businesses that use a lot of gas. On the other hand, if you use a standard amount of gas per year, you’re not likely to reach the cap for the rewards. The Sam’s Club card gives you a slightly higher rewards rate than Costco’s card.
How Can Nav Help?
Nav is your partner in all things small business. Understanding how your business is performing is essential for creating effective goals and hitting them. And we know you’re busy. Use the Nav Business Financial Health app to get a pulse on where your business stands — from your pocket.