In this article, we will share with you the best business credit card for start ups!
A business credit card is still a practical tool for gaining access to the revolving credit you require to run your company more effectively, as well as for earning cash back, points, and other beneficial benefits to help you and your company get started.
Businesses of all sizes can apply for business credit cards; many savvy freelancers, new businesses, and sole proprietors are ideal candidates.
Your business and personal money can remain totally separate if you employ the correct combination of business credit cards. With competitive cash back and benefits intended to streamline and reward regular business operations, a business credit card can also help small business owners save thousands of dollars annually.
Business credit card for start-ups: How to apply?
When applying for a business credit card, you must provide more information about your company than when applying for a personal credit card, maybe including your company’s EIN and income figures. Your name, address, and possibly other information, both personal and professional, may be needed.
Most small firms will require a personal guarantee for business credit cards. This means that as a business owner, you must apply for credit using your own credit and ensure that you will be held personally liable for any debts the company accrues. Few cards allow applicants to submit an application without providing a personal guarantee.
With no credit?
Your options for business credit cards will be significantly constrained if you have no credit or low credit, but you still have possibilities. Secured business cards and business cards for people with fair credit, such as the Capital One®️ Spark®️ Classic for Business* on the list above, may be of some assistance.
For a new business?
Even though new companies frequently have low revenue, you may still be eligible for a new credit card. You might be able to support your application with a business plan or other proof of anticipated or future revenue, depending on the issuer and how you apply.
You might also be able to get a company credit card if you have a personal guarantee and a significant personal salary. Also, You can gain a deeper understanding of the procedure and considerations used by your particular issuer by speaking with a representative over the phone or in person at a bank location.
Business credit card: what you should look for?
The sheer quantity of credit cards offering rewards for business expenditures might easily overwhelm you, but some are significantly superior to others.
You can choose the best card for your needs and objectives by using these suggestions.
If you have a start up and trying to find out the best business credit card for start ups then this article is for you.
Look for rewards:
Choose the incentives you want to get. While some credit cards give cash-back rewards, others allow you to accrue transferable points that could be worth far more than what a typical cash-back reward card provides. Keep in mind the potential value of your points while choosing a redemption strategy.
Where you spend:
Examine the bonus categories for credit cards. How will you use your credit card to make purchases? The bonus categories your new credit card offers, such as advertising, office supplies, restaurants, or vacation, should be utilized to their full potential.
Make sure you will receive enough points from the card to offset the cost of owning it by comparing expenses, including annual fees.
Benefits in the longer run:
Examine carefully additional cardholder benefits from which you or your company can profit. Examples include free staff cards for your company account, purchase protection against theft or damage, extended warranties, and travel insurance protections like luggage delay and trip accident insurance.
Top business credit cards for start-ups:
•The Blue business plus credit card by American Express:
Why you should choose “Your Merchant Service Prep” for the best business credit card for start ups A unique example of a technique to manipulate your rewards earnings without paying an annual fee is the Blue Business Plus card. Up to $50,000 in annual purchases will result in 2X points being earned. If your company is small enough to spend less than $50,000 annually, it is the ideal fit. If not, spend up to the $50,000 maximum and then use a different card for the remaining purchases of the year. Either way, you will succeed.
Pros and cons:
Wide variety of airline transfer partners
No annual fee
High rewards rate on the first $50,000 in annual spending
✖️ There’s a foreign transaction fee
✖️ 2 points per dollar rewards rate falls to 1 point per dollar after $50,000 in annual spending
• Wyndham rewards earner business card:
(Note – Best for gas)
Road warriors will quickly accumulate points because gas station transactions generate the best-in-class payouts. Nearly every highway exit has a Wyndham, so you’ll never run out of ways to use your points.
Pros and cons:
- Wyndham Diamond Status, which matches Caesar’s Diamond
- Industry-leading 8 points per dollar spent on gas
- Earn 5 points per dollar on utilities, which is a category not often bonused
- Cell phone insurance in addition to 5 points per dollar earnings on cell phone bills
- 10% award redemption discount, on top of already reasonable award rates
- ✖️ Wyndham is not tailored for luxury travelers
- ✖️ Popular categories such as dining and non-Wyndham travel are not given category bonuses
- ✖️ Top-tier status at Wyndham means less than it would at other chains
• Bank of America Business Advantage Travel Rewards World Mastercard credit card:
(Note – Best for travel)
The business credit card for start ups Advantage Travel Rewards World Mastercard credit card is an excellent option for developing small enterprises thanks to its introductory APR offer and respectable profits. If you are a part of the Bank of America ecosystem, your boosted earnings can surpass those of competitors.
Pros and cons:
- √ $0 annual fee
- √ No foreign transaction fees
- √ 3 points per dollar spent on the car, hotel, or airline travel booked through the Bank of America®️ Travel Center and 1.5 points per dollar spent on all other purchases
- ✖️ Benefits are travel-related only
- ✖️ Introductory APR period is relatively short
• American Express Business Gold Card:
(Note – Best for dining)
A company that spends a lot can justify the annual charge and reap enormous benefits from the 4x points rate on qualifying purchases.
Pros and cons:
- √ Flexible redemption and points transfer options
- √ Robust travel benefits
- √ Automatic 4 points per dollar on the two categories you spend the most each billing period on up to $150,000 in annual spending.
- √ 25% airline redemption rebate when booking through Amex Travel, up to 250,000 points back each year
- ✖️ Very high annual fee relative to benefits
- ✖️ 4 points per dollar rate capped at $150,000 in annual spending
• Ink business credit card:
(Note – Best for welcome bonus)
The benefits are significant for a no-annual-fee card for business owners that spend a maximum of 50k annually spending on the bonus areas.
The 25-75% rewards incentive offers users of Preferred Rewards for Business a chance to get rich quickly. When traveling abroad, it is advised to leave this card at home due to the international transaction cost.
Pros and cons:
- √ Introductory APR offer on purchases
- √ 3% cashback rate on the spending category of your choice
- √ Preferred Rewards for Business members earn a 25-75% bonus
- ✖️ Foreign transaction fee
- ✖️ 2% and 3% bonus categories have a combined annual spending cap of $50,000
- ✖️ No intro APR offer for balance transfers
• Bank of America Business Advantage Unlimited Cash Rewards Secured credit card:
(Note – Best Secured business credit card for start ups )
This card is exceptional in that it has no annual fee, earns 1.5% cash back on all transactions, and is open to business owners with less-than-stellar credit (in exchange for a security deposit).
Pros and cons:
- √ No annual fee
- √ Solid rewards for a secured card
- √ Potential to graduate to an unsecured version
- ✖️ Deposit required
- ✖️ Foreign transaction fee: 3% of the U.S. dollar amount of each transaction.
- ✖️ Balance transfer fee: Either $10 or 4% of the amount of each transaction, whichever is greater.
• Capital One Spark Classic for Business:
( Note – Best fair credit unsecured card)
One of the few options available to business owners with poor or acceptable credit is this card. With no annual fee, it provides a way to restore credit while receiving 1% cash back on all transactions. To prevent the high APR, though, make a plan to pay the entire debt each month.
Pros and cons:
- √ Free employee cards
- √ No foreign transaction fee
- √ Applicants with limited or fair credit may qualify
- √ Business spending management tools
- ✖️ Rewards rate is only 1% with no bonus rewards categories
- ✖️ No welcome bonus
- ✖️ No intro APR offer
- ✖️ High APR
To get the best business credit card for start ups contact “Your Merchant Services Rep“!