Business credit cards are an underutilized option when it comes to making purchases for your business. In addition to providing a great source for emergency cash, business credit cards offer a few additional perks.
1. Minimize the impact on your personal credit. Businesses tend to make larger purchases than individuals. If you end up with large outstanding balances on your personal card because of business expenses, your personal credit score could take a hit. Use a business credit card that doesn’t report to personal credit bureaus and, as long as you are on time with your payments, your personal credit will not be affected. (Some business credit card providers will report your payments to personal credit bureaus. Find out which ones do here.)
2. Build your business credit. Making on-time payments on your card can help you build strong business credit scores, allowing you to secure lower rates and longer repayment terms on business financing, as well as better terms with your vendors and suppliers.
3. Protect your business. Business credit cards offer more protection than business debit cards, so it’s in your best interest to use a business credit card over a debit card for business purchases. The Truth in Lending Act, for example, which caps maximum liability for fraudulent purchases at $50, usually covers the unauthorized use of business credit cards, but does not apply to business debit cards.
The Best Business Credit Cards
Along with these benefits, business credit cards offer a variety of different features, from rewards points, to miles, to cash back. The following are some of this 2018’s top business credit cards.
Best Cash-Back Business Credit Cards
Chase’s Ink Business Cash Credit Card makes sense for business owners who make significant purchases of office supplies and telecommunications services. The card offers aand a annual fee.
The rewards system for this card allows cardholders to earn, like phone, internet, and cable. An additional 2% per dollar spent can be earned on on gas and dining (up to $25,000 annually), and 1% back on all other purchases.
One of the neat perks of this card is that cash-back rewards are offered as points in Chase’s Ultimate Rewards program. This means your points can be redeemed for one cent each as cash back, but if you also have a Chase Sapphire Preferred or Sapphire Reserve card, you also have the option to transfer your points to airline and hotel partners.
This card is ideal for those who like to choose which purchases they earn the most cash back from. It offers.
Additional benefits include:
- A great welcome offer.
- An introductory APR of .
3. Bank of America Business Advantage Cash Rewards Mastercard Credit Card
This is a great card for business owners who want to earn additional rewards at restaurants, gas stations and office supply stores, a great combo fit for road warriors. Perks include:
- 3% cash back on purchases at gas stations and office supply stores (up to $250,000 annually).
- 2% cash back on purchases at restaurants.
The card comes with aannual fee, an intro APR of , and is available to applicants with excellent credit. Cash back can only be redeemed in $25 increments.
Best Travel Rewards Business Credit Cards
This Chase card is ideal for earning the most rewards for your frequent business purchases. It features:
- Great rewards: .
- foreign transaction fee.
- A killer intro offer:
Points are earned in Chase’s Ultimate Rewards program, and can be redeemed for 1.25 cents each towards travel booked through Chase’s Ultimate Rewards website. Or points can be transferred to miles with seven different frequent-flyer programs or points with four different hotel programs. It also features a wide range of travel insurance and purchase protection policies. There’s aannual fee for this card.
Serious business travelers need to consider this card. The Business Platinum Card From American Express offers numerous premium travel benefits including access to three different airport lounge networks — Priority Pass Select, Delta SkyClubs and the American Express Centurion Lounges. You also receive Gold Status when you sign up for the Starwood Preferred Guest program. (Editor’s Note: This offer was updated January 4, 2018.) Other perks include:
- A great welcome offer:
- A credit towards the Global Entry application fee, which includes access to the TSA PreCheck program.
- No foreign transaction fees.
Points are earned in the American Express Membership Rewards program, which offers transfers to miles with 17 different frequent flier programs. There’s aannual fee for this card.
Best Low APR/Balance Transfers Business Credit Cards
1. GM BuyPower Business Card From Capital One
This new card offers a ton for small business owners, including introductory financing and rewards that can be used for the lease or purchase of a new GM vehicle. You’ll get, followed by a standard APR. Other perks include:
- Lots of rewards! .
- annual fee.
- No foreign transaction fee.
2. The Blue Business Plus Credit Card From American Express
This card has a, plus annual fee.
Cardholders have the ability to.
Best Credit Builder Business Credit Cards
Depending on your credit, the best bet to find a credit builder business credit card might be to find a secured credit card. A secured credit card requires the holder to provide a cash collateral deposit that secures the credit limit of the card (or possibly more, depending on the card). These secured cards generally have low to no annual fee, but a pretty high penalty APR. If you have a bad credit score or no credit score, secured credit cards are a solid bet.
One good option for a secured business credit card is the Wells Fargo Business Secured Card.
Wells Fargo Business Secured Card
This card allows cardholders to secure a credit limit between $500 and $25,000. The amount available is equal to the amount of cash you provide to secure the line. The purchase APR rate can be as low as a variable 13.15%, and the annual fee is $25 per card.
This card allows business owners with poor personal credit to secure a card to make purchases and establish your business credit. This card will only report to personal credit bureaus if you default or are late on payments.
If you have fair credit, the Capital One Spark Classic for Business card could be a great option.
The Capital One Spark Classic for Business
The Capital One Spark Classic for Business card allows cardholders to earn rewards without needing excellent personal credit scores to qualify. Business owners who make on time payments and keep their balances low can build strong business credit scores, however your payment history on this card may be reported to personal credit reporting agencies and affect your personal credit scores.
Other perks include:
- annual fee.
- Rewards rate of .
Which Card Is Right for You?
If you are a business owner and do not yet have a business credit card, you should strongly consider making the time to find a card that is right for you. Identify your main motivation for making purchases on credit (i.e. earn rewards, build credit for a future loan, use it as a short-term financing option, etc.), and find out where your credit scores stand (you can check your personal and business credit scores for free on Nav). This will help you narrow the field and begin comparing some of the best business credit cards on the market.