Starting a business is an exciting time but it can also be stressful. When you start a new business the tasks you need to complete can be never-ending such as registering your business, setting up a business bank account, creating a website, getting an EIN, buying equipment, hiring staff, attracting clients and so much more. One important thing that is needed straight away is applying for a business credit card so you can start buying everything you need for your business. There are so many credit cards to look at but we have found the best business credit cards with rewards.
How Do I Choose A Business Credit Card with rewards?
When you are choosing a business credit card you want to consider what you and your business needs are. Think about what items you will need to buy with your business credit card which can include merchandise, equipment, computers, vehicles, office supplies, advertisement and so much more. Once you know what items you will need to buy with your credit card, look for a credit card that offers the best rewards for what you’re buying. If you travel a lot for your business find a business credit card that offers great points for flights or hotels such as the American Express Platinum. If you are a service business and on the road, a lot find a credit card that offers high rewards for gas.
What Credit Score Is Needed For A Business Credit Card with rewards?
Most small business credit cards require a credit score of 670 or higher. If you have a credit score below 670 chances are you could still be approved for a credit card but you will most likely have to pay a higher interest rate, require collateral such as a vehicle or house, earn fewer rewards and will be given a lesser credit limit. The higher your credit score the better terms and rewards you will receive.
What Is The Easiest Business Credit Card To Get Approved For?
The easiest business credit card to get approved for would be any secured credit card. Secured credit cards are easier to get because most don’t check your credit score and they look at other factors to approve you such as your employment, income, or have an account with the company.
One of the best-secured business credit cards with rewards for bad credit is the BBVA Compass Secured Visa Credit Card. If your credit score is 300-639 this is a great option for you. You can earn 1.5 points for every $1 spent. There is no annual fee your first year and just $40 after that. In order to apply for this card, you need to open a Secured Credit Card Savings Account with a minimum deposit of $500. You can also add employee cards to your account at no additional cost making this the best business credit card with rewards if you have bad credit.
3 Best Business Credit Cards With Rewards
#1 Capital One Spark Cash – Best for Small Business
- Get unlimited 2% cash back
- Earn a $500 cash bonus once you spend $4,500 on purchases within the first 3 months
- No annual fee for the first year, $95 after that
- Free employee cards
- Spend above your credit limit with no hassle and no over-limit fees.
- Requires Good to Excellent Credit (690-850)
- The minimum payment is 10% of the balance up to your credit limit, the full balance above your credit limit plus any late fees and interest.
#2 American Express Business Platinum – Best for Travel
- Earn 85,000 Membership Rewards Points after you spend $15,000 on eligible purchases in the first 3 months
- Earn 5X points for purchases on shipping, wireless telephone services, advertising, office supplies, and gas stations in the first 3 months – up to 80,000 bonus points per category.
- Free Credit for Global Entry or TSA Pre
- Plus rewards on hotels, rental cars, dining and so much more
- $595 Annual Fee
- High spending required to earn the welcome bonus
- Requires Excellent Credit Score
#3 Chase Ink Business Cash – Best For Cash Back
- Earn $750 bonus cash back when you spend $7,500 on purchases in the first 3 months
- Earn 5% cash back on the first $25,000 spent in combined purchases (office supply store, internet, cable and phone services) each account anniversary year. Plus earn 2% cash back at gas stations and restaurants and unlimited 1% cash back on all other purchases.
- No annual fee
- Requires good to Excellent Credit (690-850)
When looking for the best business credit cards with rewards for your business just remember to think about what you need to purchase and how you can get the most out of your rewards points.
Why Do I need To Use A Business Credit Card With Rewards?
You can use a personal credit card for your business, but it is much better to separate the expenses from your personal credit cards and put these charges onto a business credit card.
When they are on your personal credit cards the remaining balance reports to the credit agencies as credit utilization. However, most business credit cards don’t report the outstanding balances to your personal credit.
Simply by moving your business charges over to a business credit card, you could increase your credit score.
Business credit cards for new businesses
To be upfront and honest, the best business credit cards for new businesses are the same as the best business credit cards for any company. In most cases in order to get approval for a business credit card, the creditor will do an inquiry on ones personal credit.
It Is more important to have good personal credit than it is to have a business that has been around for a long time. In other words your business could be around for several years and still not get approved if you have bad personal credit. You will need to fix your personal credit before being approved for business credit.
The good news is, on the other side of the coin, you could have a brand new start up business and still get approved for a business credit card as long as you have good personal credit.
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