8 Best Business Credit Cards For Startups

Having a credit card for your business gives you access to perks and features that may not be available with a debit card or even a personal credit card. For this reason, thousands of startups and small business owners turn to business cards to help them make everyday purchases for their commercial enterprises. However, there are plenty of other reasons to consider applying for a business credit card.

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Our team of experts gathered the ultimate list of credit cards that suit a variety of people, regardless of your credit score and history. If you are ready to find the most beneficial credit card for your situation, keep reading this article to learn everything you need to know.

Top 8 Best Small Business Credit Cards

U.S. Bank Business Triple Cash Rewards World Elite Mastercard

No annual fee
Earn 1% cash back on all purchases and 3% cash back on select eligible purchases
5% cash back on prepaid travel expenses
$100 annual credit toward business software subscriptions

Blue Business Plus from American Express

No annual fee
Flexible credit limit
Add additional employee cards with no annual fees

Wells Fargo Business Elite Signature Card

You can spend high amounts with very low APR
Choose to earn rewards points or cash back rewards
Pay no foreign transaction fees on your purchases

Ink Business Premier

Great cash back deals
Expanded credit if you pay off your balance in full every month
Earn travel rewards points

Amazon Business Prime Card

No annual fee
High cash back and Amazon reward points on business purchases
Your Amazon reward points will never expire

Bank of America Business Advantage Customized Cash Rewards Mastercard

No APR on purchases in the first 9 months from account opening
You don’t have to pay an annual fee
You can qualify with a fair credit score

United Business Card

The annual fee is waived for the first year
Thousands of travel rewards miles available from the start
Tons of benefits and perks if you travel with United

Wyndham Rewards Earner Business Card

earn points that can be redeemed for free nights at Wyndham hotels
Competitive interest rates
Additional travel benefits when staying at Wyndham hotels

On this page 1. Top 8 Best Small Business Credit Cards

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So, is a business credit card the right choice for your startup? Are you considering one business card or multiple cards for your employees? Most importantly, what are some of the best business credit cards on the market right now? In this guide, we will answer all these questions and more, but first, let’s examine what people really mean when they say “business card” or “small business credit card.”

8 Best Credit Cards For Startups

Blue Business Plus from American Express
Ink Business Premier
Wells Fargo Business Elite Signature Card
Amazon Business Prime Card
U.S. Bank Business Triple Cash Rewards World Elite Mastercard
Bank of America Business Advantage Customized Cash Rewards Mastercard
United Business Card
Wyndham Rewards Earner Business Card

What Are Small Business Credit Cards?

A small business credit card provides startups or small business owners with revolving credit up to a set limit. This means that, by and large, credit cards for businesses function much like any other type of unsecured credit card.

For example, let’s say you apply for a small business credit card and get approved. The bank or lending institution will send your card in the mail, and you can start using it as soon as it arrives. You will need to make a minimum payment each month, and the lender will charge you interest on any balance remaining on your card. Therefore, when it comes to their basic functions, business and personal credit cards work the same.

That said, personal and business cards are not exactly the same. If they were, there would be no reason for the distinction. In truth, business cards often have different application requirements that can vary from one banking institution to another. You may need proof of business revenue to qualify for certain cards. In any case, the primary difference between personal and business cards is their credit limits and rewards. Generally, business cards come with a higher limit than personal cards.

For instance, let’s say that you apply for two cards at the same time — one personal and the other business. You have a credit score of 650 and an average monthly income of $5,000 before taxes. Your personal card may come with a limit of around $2,000, while a credit card for your business could come with a starting credit amount of two or three times higher.

Small Business Credit Cards

It is important to note that the example above uses hypothetical figures. The actual credit limits you can acquire will vary based on the lender, your credit history, and various other factors. This is true of both personal and business cards. Nonetheless, it is typically easier for businesses to qualify for higher limits, even if your business is relatively new or small.

The other way that business cards differentiate themselves from personal cards is the rewards. Business cards typically offer rewards programs that are beneficial to small business owners. These rewards might include travel rewards points, cash back on eligible purchases, discounts on office supplies, or no foreign transaction fees.

While you can still get some or all of these same rewards with a personal card, personal cards are generally designed to appeal to larger segments of the population. Rather than only focusing on business-related benefits, you can get personal cards with much more diverse rewards programs.

The last difference between business and personal cards may seem minor but can actually be relatively important. With a credit card for a business, you will almost always see the name of the business on the card. The card will also likely say “business credit card” somewhere on the front or back. However, this does not mean you won’t see your name on the card. In fact, most banks and lenders require the applicant’s name to appear alongside the business’s name on the card.

Who Is Eligible For A Business Credit Card?

Fortunately, if you’re in the market to get a business credit card, very few limitations stand in your way. As long as you have a credit history and can attest that you have a business, you can generally qualify for a business card. But remember: each lender has its own application requirements. Additionally, some business cards may have more stringent requirements than others.

In any case, most “starter” business cards only require a business name when you apply. This ensures that freelancers, contract workers, entrepreneurs, startups, and self-employed individuals can all gain access to business cards. If you’re worried that you won’t qualify, try to apply for a card through a bank with which you already have accounts. For example, if you have a debit account, you may have better odds of qualifying for a credit card for your business (and better terms) through the same bank or credit union.

How Do Business Credit Cards Work?

As previously mentioned, business cards generally work the same as personal cards. However, you may find some variations in the kinds of tools offered by the credit card provider. Some banks offer specific accounting products to businesses. You may also get access to helpful budgeting or tax software.

Additionally, many business cards are designed so that you can distribute cards to managers or other senior members of your business organization. This way, anyone with authority to make business purchases can do so without having to request it directly from the business owner. Naturally, this only applies if your business or startup has multiple employees with purchase authorization.

This also brings up the issue of control. If you have multiple authorized users on your account, you will often be able to control how and when those cards are used. You can even block specific cards from being used as needed. This way, you can prevent credit card fraud within your business and ensure that the account is only used for necessary business expenses, regardless of who swipes the card.

How To Compare
Business Credit Cards

Now that you know more about business cards and how they work, it’s time to think about how you can compare different business cards. If you already have a personal card or have shopped for credit cards in the past, you’ll likely be familiar with many of the metrics used for business cards. Below are some of the most important factors to consider when choosing between different business cards or providers:

Credit Limit

The limit on any credit card represents the maximum amount you can spend with that card. Sometimes, credit card companies and providers will do regular checks to see if you qualify for higher limits. Other times, you may need to request credit increases on your own.

Either way, if you know that you will need to make large purchases or spend a certain amount on business expenses each month, you’ll want to ensure that your business card can cover the costs. Remember that your starting credit amount largely depends on your income (business and personal) and your individual credit history.

If you have a credit history for your business, this will also be a significant factor. However, many small businesses and startups still need to establish a credit history or need to be made aware of where their business score stands. If you have previously taken out business loans under the current business name, there is a good chance that you have a business score. If not, lenders and credit card companies will rely more on your personal finances to determine your credit amount.

Rewards

Each business and business owner has specific ways of spending money. For instance, if your business has no travel expenses, you have little need to get a travel rewards credit card. Instead, you may prefer a business card with cash-back deals on eligible purchases or discounts on business software. Regardless of which bonus rewards you prefer, you should thoroughly evaluate your business spending and how you could benefit from different kinds of rewards. This way, you can skip over cards that don’t offer the types of rewards you want or need and instead focus on the ones that do.

Interest Rate

Having a credit card can give your business instant access to credit, making it much easier to stay up and running. That said, if you don’t practice fiscal responsibility with your card, you could easily see yourself (and your business) burdened by an endless cycle of debt. This is particularly true if your card comes with a high annual percentage rate (APR).

On average, business cards have lower interest rates than personal cards. These lower rates are often available because businesses can report both business and personal income when applying for a new card. Nonetheless, you should shop around for a credit card company that offers lower interest rates. Even getting a card with 18% APR instead of 20% APR could save you thousands of dollars every year.

Fees

Many (though not all) business cards charge an annual fee to keep the account open. The annual fee amount can vary between lenders and, in some cases, can be waived based on your spending habits. In any case, you should always know exactly how much you need to pay in fees to maintain your business card.

An annual fee is just one of many fees to consider. Some cards charge high penalty fees for going over your limit or even failing to use your card enough. For this reason, you should always read the fine print to determine how much you’ll need to pay for the annual fee, overage fees, penalty fees, or any other fees charged by the card provider.

Security

These days, most credit card companies have excellent security features to ensure that your account remains safe from theft or fraud. Major banks often employ standard fraud detection services and activity monitoring to watch for suspicious activity. These services can be extremely beneficial if you fear that your business card has been stolen or used for fraud.

It goes without saying that the security measures offered by different credit card companies, banks, and lenders are never exactly the same. Some providers offer more features to ensure that your cards remain safe. So, if security is a top concern for you and your business, investigate what security features are available before choosing a business card.

Business Credit Card Benefits

Though you may already know that you want a credit card for your startup, it’s still a good idea to know the potential benefits and drawbacks of acquiring a business card.

Pros of Business Credit Cards

Easy to Qualify – As long as you have a decent financial track record, you can qualify for a credit card. Even if your individual credit history is fair or bad, you may be able to qualify for a business card with a high APR and low amount of credit.
Quick Access to Credit – A business card is one of the fastest ways to increase your organization’s purchasing power. Common alternatives like business loans usually have more stringent requirements to qualify and longer processing times.
Business Rewards – If you use a business card responsibly, you can pay very little (or nothing) in interest while also racking up tons of rewards and benefits. From discounts on business travel to high cash rewards on eligible purchases, business card rewards programs can help boost your startup’s cash flow.
Improve Credit – Like any kind of credit card, a business card can help you build your credit score and establish a strong credit history over time. Additionally, most business cards automatically report your credit card usage to one or more business credit bureaus, allowing you to build a business credit profile and improve your personal credit score simultaneously.

Cons of Business Credit Cards

Difficult to Acquire With Credit Issues – If you have no business credit history and a poor personal credit score, you will likely find it difficult to get a business credit card. This is especially true if you have marks on your credit report for late payments, defaulted loans, or similar credit issues.
Higher Interest than Business Loans – On average, small business loans come with interest rates between 7% and 15%. These are extremely low compared to business cards, which typically charge no less than 16% interest. Additionally, the government can partially or fully forgive certain types of business loans, which is not the case with business card debt.
Potential Debt Issues – Like personal debt, business debt can accumulate quickly. If you do not use your business card responsibly and never pay more than the minimum monthly payment or have a poor payment history, you could cause significant financial issues for your startup.

How To Apply For a Business Credit Card

Once you choose a credit card that fits your needs, you’ll need to know what to expect during the application process. The information and documentation you must provide may differ based on the size and structure of your business, as well as the requirements set out by the credit card provider. That said, the requirements will typically be divided into two categories: personal information and business information.

Personal Information

Even if you’ve been in business for years and have established business credit, you will need to provide some of your own information and documents as a “personal guarantee.” This personal guarantee assures the lender that you can personally pay for debts if your business cannot. Here is some of the essential personal info that you’ll need to provide:

Full name
Date of birth
Social Security number
Home address
Phone number
Email address
Annual income
Monthly housing payment (rent or mortgage)

Business Information

Again, the amount of business information needed varies from one lender to another. You can often get by with less information if you apply for a business card through a bank with which you already have accounts. It can also help to visit a local branch of your bank in person, as you can plead your case to an individual rather than simply inputting information in an online form. In any case, here is some of the business info that you may need to provide when you apply:

Business name
Legal structure (LLC, corporation, etc.)
Industry
Business address
Phone number
Annual revenue
Number of employees
Years in business
Estimated monthly spending
EIN (if applicable)

The 8 Best Business Credit Cards For Startups

Blue Business Plus from American Express

The Blue Business Plus from American Express is a great card for startups that need substantial buying power. This American Express Blue Business card comes with no annual fee and Expanded Buying Power, meaning you can go over your limit without incurring any penalty fees. Plus, the double rewards points on eligible purchases make this card extremely beneficial for startups with recurring expenses.

Annual Fee: $0
Sign Up Bonus: 0% intro APR for purchases in the first 12 months from account opening
APR: 16.99% – 24.99% (Variable)
Recommended Credit Score: 680 and above
Rewards: 2x rewards points on eligible purchases for your business
Additional Benefits: Flexible credit limit
Best For: Startups with high spending

Pros

You won’t pay an annual fee with this American Express Blue Business card
Flexible credit limit to accommodate the fluctuating needs of your business
Add additional employee cards with no annual fees