Business owners are aware that every dollar is important. Using a credit card can be a fruitful tactic when it comes to maximizing commercial transactions.
Numerous advantages may be available with a business credit card account. It consists of loyalty points, rewards or cash back, travel insurance, and expense management.
Determining which of those elements are important for your company and what you value most can help you locate the finest business card for you.
What Is A Business Credit Card?
Anyone who operates a business is normally eligible for a business credit card account. Anyone can be qualified for a business card, including large firm owners and operators, solo proprietors, and those in the middle. There is no requirement for having staff or an office.
Typically, business credit cards are intended to be used for expenses related to running a business, such as buying supplies, office equipment, or travel.
When utilizing credit cards to spend money that isn’t yet earned or in the bank, new firms should exercise caution. A common clause in the terms and conditions of business cards forbids cardholders from using the cards for personal purposes.
Having a business card helps you establish business credit, which lenders and other banks would consider if you ever apply for a loan for your company. For significant expenditures, some cards provide short-term financing.
Best Business Credit Cards
|Name of the card||Annual fee||Welcome bonus|
|The Blue Business® Plus Credit Card from American Express||N/A||Earn 15,000 points|
|Ink Business Unlimited® Credit Card||N/A||Earn $900 bonus cash back|
|American Express® Business Gold Card||$295||Earn 70,000 points|
|World of Hyatt Business Credit Card||$199||60,000 Bonus points|
Closer Look To The Cards
1. The Blue Business® Plus Credit Card from American Express
To learn more about the credit cards let’s have a closer look on top business credit card account. The American Express Blue Business® Plus Credit Card is a little special because there is no yearly cost to earn Membership Rewards points.
A new firm can use the card’s introductory APR offer to pay for inventory or other expenses up front while gaining some extra time to pay the balance in full without interest.
Rewards: Up to the first $50,000 in annual expenditures, earn two Membership Rewards points for every dollar spent on standard business expenses like office supplies or client dinners, and one point for every dollar spent on all other purchases.
2. Ink Business Unlimited® Credit Card
As a cash-back business credit card account, the Chase Ink Business Unlimited® Credit Card is promoted as having a high rate of cash back. Rewards are treated as transferable Ultimate Rewards® points when used in conjunction with a premium Chase Ultimate Rewards card, making this card even more valuable.
If you want a clear earnings rate over bonus categories, the Unlimited beats the Ink Preferred—as long as you match it with a card that offers transferable rewards.
Rewards: On every purchase made for business, earn 1.5% in cash back incentives.
Other benefits: If you only need one business card, the Chase Ink Unlimited is a good option because the “set it and forget it” benefits are so simple to obtain.
You must combine this card with another Ultimate Rewards-earning card, such as the Ink Business Preferred® Credit Card, the Chase Sapphire Preferred® Card, or the Chase Sapphire Reserve®, in order to maximize its potential.
3. American Express® Business Gold Card
The Business Gold Card from American Express is a good choice for entrepreneurs that want to optimize their profits but don’t want to spend a lot of time considering how to achieve so.
Every billing cycle, American Express automatically offers you significant rewards on the first two categories from a pre-selected list that you spend money on. The American Express Business Gold Card does the legwork for you whereas many cards offer quarterly or revolving bonus areas.
Rewards: Earn four Membership Rewards® points for every dollar spent on the two particular categories where a company spends the most money each month.
For other purchases, you get 1 point for every dollar spent. The first $150,000 in combined purchases from the two qualifying categories each calendar year are subject to a 4 point per dollar earning rate.
4. World of Hyatt Business Credit Card
The World of Hyatt Business Credit Card account comes out on top in our ranking of business hotel cards thanks to its combination of valuable amenities and attractive earnings rates. With this card, you may easily earn rewards more quickly on paid Hyatt stays as well as on any other purchases.
Rewards: Earn four points for every dollar spent at Hyatt hotels, two points for every dollar spent in the card holder’s top three spending categories every quarter until December 31, 2013, two points for every dollar spent on fitness club and gym memberships every quarter, and one point for every dollar spent on all other purchases.
Frequently Asked Questions
1. How is a business credit card different from a personal credit card?
Ans. Business credit cards are primarily different from personal credit cards in that the CARD Act’s consumer protections are not there. Company credit cards may offer different incentives and perks than personal credit cards and may also report to business credit agencies.
2. What is the best business credit card?
Ans. A combination of your company spending habits, your goals for owning a certain business card (such as if you desire rewards or a 0% introductory APR offer), and your personal credit history will determine which business card is appropriate for your unique situation. There isn’t a single best card that can meet everyone’s requirements.
3. Why does your business credit score matter?
Ans. A good business score can also let lenders know that you qualify for financing on purchases or other loans, much like a strong personal credit score can help you get better rates on your loans.
A potential lender will probably check your business credit score to determine your creditworthiness and what terms to grant you, for instance, if you need to sign a lease on a larger space for your business, add a new truck to your fleet, or make a significant purchase of supplies for your business.