Have you ever wondered what business credit cards are? In case you are not aware, here is a short answer: Business credit cards are cards that cater to business needs. Yes, business needs access to credit to flourish. Cash crunches can block the growth of a business. Business credit cards are a medium of cash flow so that the business activities run without any hindrances. In case you are wondering which are the best business credit cards in the market, we have compiled a small list that you may find useful. Read on!
Best Business Credit Cards
1. American Express: The Blue Business℠ Plus Credit Card
The Blue Business℠ Plus Credit Card is great if you make a lot of business purchases. The card comes with excellent perks that are beneficial for small and medium businesses alike. The features that this card has to offer are:
- If you spend using the card for purchasing office supplies or funding client dinners, you will earn 2X points every day.
- In the first year of getting the card, if you spend $50,000, you will get two points for every one dollar you spend. After the first year, the reward comes down to one point for every one dollar you spend.
- When you buy beyond the credit limit, your card will get more purchasing power as well as rewards.
- However, you need to remember that when you spend outside your credit limit, there will be a limit to how much you can spend in excess. The amount you can spend above the credit limit will depend on various factors like:
- Credit record that you have.
- The history of your payments.
- How frequently you use the cards.
- The financial resources that you have and are known to the bank.
- Several other factors.
- The card offers an introductory APR of 0% that remains active for 1 year and 3 months. After the offer expires, you will have to work with the regular APR.
- The regular APR is 13.24% to 21.24%. It is variable APR, and the rate that you will receive will depend on your creditworthiness as well as various other factors during the time of opening the credit card account.
2. Capital One: Spark® Classic for Business
The Spark® Classic for Business credit card is one of the most highly rated business credit cards available in the market. Some of the salient features of the credit card include:
- No yearly or annual fee.
- Regular variable APR of 24.74%.
- Cash back of 1% every day on every purchase you make.
- If you lose your card or someone steals your card, you will get fraud coverage.
- You can receive year-end summaries of your card expenses and repayments. You can also avail cards for your employees without paying an extra dime.
Note that the card will not offer any introductory APR. You have to work with the regular APR from day one. However, the best part of this business credit card is that you do not need to have a stellar credit history. Even if your credit score is average (between 630 and 689), you can become eligible for this card.
3. American Express: SimplyCash® Plus Business Credit Card
One of the finest business credit cards available in the market, the American Express SimplyCash® Plus Business Credit Card comes with tons of benefits for small businesses. The salient features of the credit card include the following:
- If you spend $50,000 on purchasing wireless telephone services either from US Office Supply Stores or US service providers, you get to earn 5% cash back.
- If you spend $50,000 in any one of the eight listed categories, you get 3% cash back.
- For all other purchase, you will enjoy 1% cash back.
- The card will allow you to spend beyond its set credit limit. However, there is a limit to the extra amount that you can spend.
- The extra amount that you can spend will adjust according to:
- Your card usage pattern.
- Financial resources that you disclose to the bank.
- Your credit record.
- Your history of payment, etc.
- American Express will not charge an annual fee for the card.
- There is an introductory APR offer of 0% that you can use for 15 months straight. Once the APR offer ends, the regular variable APR of 14.24% to 21.24% applies. The rate you will receive then will depend on your credit score and other factors.
4. Ink Business Preferred℠ Credit Card
One of the most famous among all business credit cards is the Ink Business Preferred℠ Credit Card. Offered by Chase, this credit card has tons of features that are perfect for small and medium businesses alike. The salient features of the card include the following:
- In the first 90 days after opening the account, if you spend $5,000 on making business purchases, you will get 80,000 bonus points. If you redeem these points through Chase Ultimate Rewards®, it will be equivalent to $1,000 in travel expenses.
- The first $150,000 that you spend on your business travels or selected business categories, you will earn 3 points against every dollar you spend. You will receive the points in every anniversary year of your account.
- If you use the card for any other purchase, you can earn one point against every one dollar you spend. There is no limit on the number of bonus points that you can earn through this.
- If you redeem all the points through Chase Ultimate Rewards®, they will be worth 25% more.
- You can redeem your points in the form of gift cards or cash back or travel. The points never expire. So, as long as your account is open, you will have access to your points even if you are not using them.
- You can get employee cards without spending an additional dime.
- You will have to pay an annual fee of $95 for using the card.
- The regular APR of 17.99% to 22.99% will be applicable since day one. There is no introductory APR offer available with the card.
- If you use the card in foreign countries, there will be no charges.
Business credit cards are always a bit expensive compared to other types of credit cards. Also, you need to have a good credit score if not stellar. Ensure that you pay the outstanding amounts quickly on time because doing so will help you improve your business credit rating and creditworthiness.