If you’re a small business owner, then you need a business credit card. Not only are business credit cards an excellent way to finance your business if you don’t have the funds available, but they also allow you to earn a return on your spending in the form of reward points or frequent flyer miles.
In fact, it’s a good idea to put as much of your business spending as possible on a business credit card because of the reward opportunity. As long as you pay off your credit card bill every month, you won’t accrue any interest, which means you’ll be getting points back on what you’d be spending anyway. It’s important to find a credit card that fits your spending habits and your needs.
Popular with Entrepreneurs
Financing a small business through a small business credit card has become a popular option for new entrepreneurs. New entrepreneurs find getting a traditional business loan difficult because they come with strict eligibility rules. Getting loans from family or friends is also not an easy task. A small business credit card helps new entrepreneurs finance the new business. The eligibility terms for a small business credit card are not as strict as those of traditional business loans and offer a range of benefits to help a new entrepreneur fund the start-up enterprise.
Unsecured Business Credit Cards for Bad Credit
If you are an entrepreneur who needs funding for your small business but your credit score is poor or bad, you can choose a business credit card that not only funds your business but helps you build your credit score. Some good small business credit cards for entrepreneurs include the Fingerhut Credit Account. Fingerhut does not require a deposit and offers an unsecured card. They report to all three credit rating agencies and help you build your credit rating. The Total Visa Card is a genuine unsecured Visa card. It is one of the low rate credit cards for small businesses. No security deposit is required. Applicants require a checking account and have to pay an application fee. Another genuine unsecured Visa Card is the First Access, Visa Card. This is one of the unsecured low rate credit cards for small business that help the entrepreneur build a credit rating.
Guaranteed Approval Unsecured Business Credit Cards
If you require funding through an unsecured credit card tailored for your small business, there are companies that quickly approve of these small business credit cards to help improve the credit score of a small entrepreneur. Some examples of these unsecured low rate credit cards for small businesses are Capital One Spark Classic for Business. Approval of this credit card is easy because it is intended for new entrepreneurs with an average credit history. The Milestone Mastercard is tailored for a business with a poor credit history or no credit history. Approval for a startup small business is quick and fees are adjusted annually after assessing your credit standing. The card offers fraud protection and reports to credit rating agencies to help you improve your credit history. The Indigo Platinum Mastercard is offered for applicants with bad credit even if they have previously filed for bankruptcy.
Easy to Get Business Credit Cards
Small business credit cards help an entrepreneur purchase products online and pay invoices online easily. They are handy for small entrepreneurs especially when emergency payments need to be made. If you are a small entrepreneur, these easy to get business credit cards to help you build your credit score. One of the easiest credit cards to get for a small business is the Capital One Spark Classic for Business. This credit card has eligibility terms and approval terms tailored to a new entrepreneur with a small business. The Milestone Mastercard is easy to get a business credit card and while approving applicants, the company forgives their credit problems. As the creditworthiness of the applicant improves, the company lowers the annual fee as a reward. The Total Visa Card is a genuine Visa Card with an easy application process and a quick approval process. All three companies report to credit rating agencies to improve the credit rating of the applicant.
Business Credit Cards that Help Business Prosper
If you choose to finance your small business using a business credit card, you need to get low rate credit cards for small businesses that give you rewards and does not make a large dent in your profits. The Chase Ink Business Cash is a no annual fee credit card that helps small business. They also offer a 5% cash back for many categories and you can make a large business purchase without a high rate of interest. The American Express Business Platinum Card OPEN and the Chase Ink Business Preferred Card are ideal credit cards for entrepreneurs whose business requires frequent travel. The companies offer much bonus earning options with a view to match business spending patterns. This helps you earn profitable rewards for regular business expenses.
Business Credit Cards that Build Credit Scores
If you have a bad credit score, getting a business credit card tailored for a small business that reports to the three major credit rating agencies will help you improve your credit score. You should consider getting a credit card that is a tool to improve your credit rating and adhere to the terms of the card strictly to make your small business succeed. The Capital One Spark Classic for Business is the best business credit card for a small business with a bad credit score. The card is approved even if the applicant has a poor credit score. If they make payments on time and have a low balance, their credit rating improves. The Wells Fargo Secured Credit Card for a small business requires a deposit and does not give rewards or cash back. Card activity is reported to credit bureaus. If payments are made on time you are upgraded to an unsecured Wells Fargo card and the security deposit is refunded. The Credit One Bank Platinum Visa is another credit card that helps you rebuild your credit score. You can earn rewards and cash back while building your credit score.
Chase Ink Business Preferred
Chase stepped up its credit card offers in the final quarter of 2016, starting with its personal card, the Chase Sapphire Reserve, and continuing with its Ink Business Preferred credit card. The card has a signup bonus offer of 80,000 reward points for spending $5,000 in the first three months, which is among the highest bonus offers on the market. Instead of the traditional 1 point per dollar spent, this card earns 3 points per dollar in a few popular spending categories, which include online advertising and travel, up to a maximum of $150,000 in spending. Through the Chase Ultimate Rewards portal, you can redeem your points for 125% of their value when you put them towards travel rewards. Chase Ultimate Rewards points are also very versatile, as there are many airline and hotel transfer partners available. This card has an annual fee of $95, which is an average amount for a business rewards card.
American Express Business Gold Rewards Card
One of American Express’s most popular business cards is this Gold Rewards Card, and its signup offer is 50,000 bonus reward points for spending $5,000 within the first three months of having the card. With this card, you’re able to select one spending category where you earn 3 points per dollar spent, with your category options being airfare, advertising purchases in select media, gas stations, shipping, and computer-related purchases. Once you select a category, you get 2 points per dollar on the remaining four categories.
What Business Gold Offers
Each category gets those bonus points for your first $100,000 in spending. The card has an annual fee of $175, but it’s waived for the first year. One thing to note about this card is that it’s a charge card, which means that you pay the entire balance each month and don’t carry anything over from month to month. If you do need extra time to pay something off, American Express offers a Pay Over Time feature that you can contact them about. Like Chase, the American Express Membership Rewards program has quite a few airline and hotel transfer partners, making it easy to find a way to use your points.
Capital One Spark Miles for Business
The Spark Miles for Business card is a simple, yet useful business credit card. It earns frequent flyer miles, and the signup bonus offer is 50,000 miles for spending $4,500 in the first three months. You earn 2 miles per dollar spent, and that’s for every spending category with no caps. It has a $59 annual fee, but it’s waived for the first year. If your business spends a large amount every year, this card may be worth it so you can get as many miles as possible, as it doesn’t drop you down to 1 point per dollar like the other two cards do after you hit a spending limit. The main disadvantage of this card is that Capital One doesn’t have as many transfer partners as Chase or American Express. While it’s simpler to redeem your miles, you don’t have as many options.
Business Credit Cards Can Help
Starting a small business with a poor credit score is difficult if you are looking for a traditional bank loan. Getting a credit card that is meant for a small business is an easier way to finance your business and give you the required cash flow and emergency money to fund your startup. With all the great business credit card offers available, you can’t go wrong. The best way to choose a card is to consider which presents you with the most useful point-redemption options and which will earn you the most points on your spending. You may find that one of these cards has a bonus in a spending category that matches where you spend the most money, making your decision an easy one. Maximize the number of points you earn so you can get the best return for your business.