Your business is incredibly important, whether you have spent countless hours (even years) building it or are just getting it off the ground. Either way, you know that every single cent you put into your business should have a purpose. We understand this here at Business Pundit, so we think you should consider one of the best business credit cards to help put your money to work.
A credit card for your business can be a very wise choice when you consider your bottom line. Credit card companies want your business, so they are constantly offering cash back, airline miles, and other rewards for using their financial products. If you don’t take advantage of the rewards banks offer for their products, you are essentially giving away money.
The best philosophy to have when utilizing a business credit card is to treat it like a debit card. Don’t spend money that you don’t have, as credit cards typically charge exorbitant interest rates, up to almost 30%. Pay off your bill in full every month so that interest doesn’t cut into or completely wipe out the value of your cash back and rewards.
We think you should seriously consider opening a credit card account for your business. Check out some of the best business credit cards below and see how they can start working for you.
Top Picks for Business Credit Cards
Best for Online Businesses and Online Advertising
Chase Ink Business Preferred
So much of business nowadays goes toward the internet—shopping, marketing, and shipping, among others. If you are not using the internet to help promote your business or advertise your products and services, your competitors will. This is where the Chase Ink Business Preferred credit card shines, providing a ton of value to you and your business.
For just a $95 annual fee, this card earns a ton of rewards for a vast majority of your typical business purchases. You will earn three Ultimate Rewards Points on all of the following categories: advertising purchases made with search engines and social media sites; shipping purchases; internet, cable, and phone services; and travel.
At a minimum, that’s like earning 3% cash back on all of those purchases. If you use it for travel (personal or business), you would get at least 3.75% back. You will earn the three points per dollar on up to the first $150,000 you spend in the bonus categories.
As an incentive to get this business credit card, you can also earn a massive sign-up bonus. You can earn 100,000 Ultimate Rewards Points if you spend $15,000 on the card within the first three months of opening the account. That’s a minimum of $1,000 cash back or $1,250 back toward your travel purchases.
This card is also great if you like to travel for fun or if your business requires you to travel. As mentioned, it earns three points on your travel expenses, but it also has a lot of other travel benefits. It charges no foreign transaction fees, has trip cancellation and interruption insurance, and provides an auto rental collision damage waiver. This can make your travel much less stressful (and less expensive) by protecting you in the event an unplanned mishap occurs while you’re out of town.
Your Ultimate Rewards points can also be transferred to one of many other airline and hotel loyalty programs at a 1:1 ratio. That means your points can potentially be worth even more when you transfer them to other programs. If you want to book travel at the cash rate though, you can book your accommodations, flights, and activities through the Chase booking portal at a value of 1.25 cents per point.
So even if your business is not solely online, or if you don’t do a lot of advertising and marketing online, you can still find massive value with the Chase Ink Business Preferred credit card. But if you do spend a lot in this card’s bonus categories, it is an absolute no-brainer to apply now for this card.
Best for Business Travel
The Business Platinum Card from American Express
If you own a business that relies heavily on travel, or if you are a jet-setter that travels the world when you’re not working, the Business Platinum Card from American Express is likely the ideal business credit card for you. Despite its large annual fee, this card offers a ton of value and perks when traveling and rewards you for all of your travel purchases.
Let’s address the one downside to this business card: It comes with a $595 annual fee. That may seem like a lot, but when you take into account all of the various perks, rewards, and benefits of this card, you will see that it is worth much more than $595.
First off, the card has a massive sign-up bonus worth up to $1,500 in travel. If you spend $15,000 on the card within the first three months of opening the account, you will earn a bonus of 75,000 Membership Rewards points.
As the best business credit card for travel, this card offers what seems like an endless laundry list of travel benefits and perks. To start, this card earns five Membership Rewards points on all travel-related purchases made through amextravel.com. That could be 10% back on your travel purchases so you can travel even more. All other purchases earn one point per dollar (or 1.5 points per dollar on purchases over $5,000). If you book your travel and pay with your points, you will get 35% of those points back up to 500,000 per year. To make your points even more valuable, you can transfer them to one of over 20 different airline and hotel loyalty programs.
Not only does the card offer great savings when you book your travel, it has a ton of benefits that make traveling so much more relaxing and luxurious. You will get a $200 annual airline incidental credit for things like seat upgrades and checked baggage; this credit alone covers a third of the annual fee each year. You will fly through Custom or TSA screening thanks to the Global Entry ($100) or TSA Pre-Check ($85) statement credit.
Once through security, you can relax in an airport lounge with food and drinks thanks to complimentary access to the American Express Global Lounge Collection, which includes over 1,200 different lounges in 130 countries. Once you reach your destination, you will get the royal treatment at Marriott and Hilton hotels courtesy of the complimentary Marriott and Hilton Gold Elite status. You won’t pay any foreign transaction fees when out of the country either.
If by chance you experience an unfortunate situation when traveling, this card has you covered most of the time. It includes trip delay insurance, trip cancellation and interruption insurance, car rental loss and damage insurance, and baggage insurance. This card allows you to travel comfortably and as stress-free as possible.
One thing to be aware of is that the airline incidental credit as well as the 35% points rebate are applicable to only one airline that you select. The 35% rebate does apply to any airline when booking business or first class fare, though. The $200 airline credit also can’t be used to cover airfare directly, only incidental charges.
And last but not least is the $200 statement credit you will get every year for Dell Technology purchases (broken into $100 credit for January to June and another for July to December). This can help cover any Dell computer or laptop purchases for your business.
As you can see, the Business Platinum Card from American Express is jam-packed with benefits for your work travel. If you regularly have to fly around the country or internationally for work, this card is going to make your life so much more comfortable and stress-free. Leave the stress for the big meeting with your top client, and travel carefree with this card.
Best for Business Cash Back
Capital One Spark Cash for Business
Cash: It keeps your business running, and a little more of it always helps. That’s where the Capital One Spark Cash for Business credit card can help you out. It is a flat rate cash back business card that rewards you well for every single purchase you make. It’s not a flashy card with tons of benefits and perks, but its potential in value is definitely worth its fee.
Having complex programs, transferring points, and tracking a bunch of business categories is not for everybody. We know that as a business owner, you have a lot of things to keep track of and that sometimes means the simple approach of flat rate cash back is ideal. This card does just that by giving you 2% cash back on all of your purchases without imposing any sort of limit.
When you open the card, you will have three months from account opening to spend $4,500 for your sign-up bonus. Once you reach the spending requirement, you will get an additional $500 cash back. That is a great sign-up bonus for a card that waives the annual fee for the first year. There is a $95 fee to have the card every year after that. In order to cover the fee for the card, you will have to put only $4,750 in business purchases on the card each year. Everything after that is extra money in your pocket.
This card does a few other notable perks and benefits worth mentioning. When traveling abroad, you won’t pay any foreign transaction fees and you will get an auto rental damage waiver. One great benefit as a business owner is that employee cards on the account do not incur another annual fee like some premium business credit cards. Lastly, you get purchase security and extended warranty protection on eligible purchases with this card.
As a business owner or entrepreneur, you have a lot of things to worry about, and maximizing credit card rewards may not be at the top of your priorities. However, if you still want to maximize your rewards, simply consider the Capital One Spark Cash for Business credit card.
Why Get a Business Credit Card?
When it comes to managing finance for your business, you want to make sure that you aren’t squandering any opportunity to make more money or save money. A credit card for your business can provide you both of these things and more.
The number one benefit to having a business credit card is that it provides fraud coverage in the event somebody else gets ahold of your information. Credit card companies and banks monitor activity on your account and can identify fraud easily and quickly. If their system misses something, they provide an easy way for you to dispute charges as well. This is the biggest advantage of a credit card over a debit card for your business expenses. The last thing you want is to find out somebody else racked up a huge bill on your account and then be liable to pay for it.
The next best advantage in using a credit card for your business is that it can provide all sorts of benefits and rewards. With every swipe of your business card, you can earn cash back or travel rewards. This benefit can significantly help your bottom line, especially if your expenses column runs high on a monthly basis. If you pick the right business credit card, you could be earning up to 5% back on every dollar you spend. If you don’t use a credit card, you will be losing out on free travel and cash back in your pocket.
You can also add employees as authorized users on your business credit account as well. Sometimes there is a fee associated, but oftentimes they are free to add. That means that any purchase an employee has to make for the business won’t need to go through the hassle of a reimbursement process. You will also get the rewards rather than the employee getting points on their card.
No matter what type of business you own or how much you spend each month, you should add a credit card to your company finances—you can thank us later.