Top 3 Business Credit Cards: Reviews and Features
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Business Credit Cards can help you separate your personal and business finances. Business Credit Cards are not only for enterprise owners or large business owners. If you are a freelancer or have a small business, you may also find a business credit card beneficial.
Many business credit cards offer new card membership offers and an introductory zero percent APR for a period of time. Several benefits and rewards come with business credit cards, such as cashback on many categories and bonus points on a set amount spent in the first couple of months.
Suppose you are a small business with no prior credit history. In that case, we recommend a secure credit card where it can provide you with the spending power your business needs while effectively building your credit score. The more you add to your security deposit over time, your credit limit will increase accordingly, usually up to $10,000 per card.
Before choosing a credit card for your business, there are some factors you need to consider and questions to think through; we will guide you through the process.
1. Understand how business credit cards work
Before choosing one for your business, it is vital to understand how business credit cards work, as they function a little differently from personal or general-purpose credit cards. For example, you will be held responsible for any purchases made on your business card account, including employee purchases with business credit cards.
Moreover, business credit cards offer less protection than personal credit cards. For instance, if you miss a payment, you may experience a shortened grace period or an increase in APR without notice, as business cards are often not protected under the laws of the CARD act.
Furthermore, you need to distinguish between charge cards and credit cards. A charge card provides you with no spending limit and requires you to pay the bill in full every month, while business credit cards have a pre-set spending limit that allows you to carry a balance month to month. Most business credit cards offer zero percent introductory APR periods, which charge cards do not provide.
Lastly, business credit cards provide you with great benefits such as opening employee cards and tracking your spending. Employee cards are most often offered for free, and they help you streamline your business expenses without the need to reimburse your employees while still earning points and rewards with their spending.
2. Understand your business spending
Before choosing any credit card, understanding your spending habits is an important step. This will help you narrow down which business credits cards suit you best as you identify your spending categories and what kinds of rewards would benefit you and your business.
You should ask yourself whether your business requires you or your employees to travel frequently; if it does, it's best to choose a business credit card that offers zero foreign transaction fees and travel rewards. Such cards include the Business Platinum Card from American Express, where you get extra points on flights and prepaid hotels on amextravel.com.
In addition, ask yourself, does your business need to entertain clients at restaurants? If so, a business credit card that offers rewards on dining purchases should be considered. For instance, the American Express Business Gold Card offers you 4X Membership Rewards points on the two categories where your business spent the most each billing cycle in the USA, such as:
- Gas Stations
- Restaurants, including takeout and delivery
- Online, TV, and radio advertising
- Computer hardware, software, and cloud systems
4X Membership Rewards points from the American Express® Business Gold Card apply to the first $150,000 spent in combined purchases each calendar year; after that, you earn 1X.
Similarly, suppose your business requires a lot of driving. In that case, you could opt for a business credit card that offers greater rewards on gas purchases that will help offset the cost of fueling vehicles when you redeem cash back as a statement credit. If your business is new and you spend across multiple categories, a simple flat-rate cash back business card could also be your best option.
Terms and conditions apply.
3. Consider and compare benefits
Besides streamlining your business expenses and earning rewards, a business credit card can grant you extended warranties and protection, special financing offers, account management tools, and more. Here are some extra benefits you may want to look out for when choosing a business credit card:
Special financing offers
As we mentioned earlier, most business credit cards offer a zero percent APR period, where your purchases will be charged no interest, usually for as long as 15 months. This could be quite beneficial for costly purchases for new businesses.
Purchase protection and insurance
Like some high rewards personal credit cards, business credit cards could also offer you protection packages, such as travel insurance, auto rental damage collision insurance, extended warranty coverage, and much more. These protections are usually provided simply for being a cardholder, and in some cases, enrollment may be required.
Luxury perks usually come at the cost of an annual fee; for some businesses, though, it might be worth it. Such perks can include annual airline fee credits, lounge access, and elite status at airlines or hotels.
Account management tools
More business credit card perks include account management tools that provide you with the ability to export transactions, quarterly and year-end summaries, and itemized receipts.
Now that you are familiar with choosing your business credit card, we will present you with our top three recommendations and their top benefits.
The American Express Blue Business CashTM Card is a great option for new business owners or established businesses looking for cash back earnings on rotating categories and purchases.
- It charges no annual fees and offers an introductory zero percent APR for the first 12 months on purchases; the APR ranges between 16.24% and 24.24% Variable.
- The American Express Blue Business CashTM Card earns you 2% cashback on your first $50,000 in purchases each year, and then 1%, and the cash your earnings will be credited back to your statement automatically. Additional benefits include car rental loss and damage insurance, expense management tools, and free employee cards.
- You also get a welcome offer to earn a $250 statement credit after spending $3,000 in the first three months. The American Express Blue Business CashTM Card provides you with expanded buying power, where you can spend beyond your credit limit. However, the amount is not unlimited and is adjusted with your card usage, payment history, and credit record.
- It is worth noting that the American Express Blue Business CashTM Card charges a foreign transaction fee of 2.7%, so if your business does not require a lot of international traveling, this card may be worth your while.
- Terms and conditions apply.
Moreover, the American Express Blue Business CashTM Card provides you with a variety of expense management tools which include:
- Employee Cards
- QuickBooks Connection
- Online Statements
- Account Manager
- Year-End Summary
- Vendor Pay by Bill.com (Enrollment required)
- American Express App
You are also offered some additional services that include an extended warranty on covered purchases in the United States, its territories, or possessions. You also get Purchase Protection for up to 90 days from the covered purchase date with up to $1,000 per occurrence, and $50,000 per calendar year. American Express will also work with you to resolve any disputes in case of fraudulent or incorrect charges on your statement.
Terms and conditions apply.
The Ink Business Cash® Credit Card from Chase offers generous perks for its holders. Such perks include employee cards, auto rental collision damage waivers, purchase protection, and extended warranty protection.
The Ink Business Cash® Credit Card charges zero annual fees. The welcome offer allows new cardholders to earn $750 bonus cash back after spending $7,500 in their first three months of card membership.
The Ink Business Cash® Credit Card also allows you to earn 5% cashback after spending the first $25,000 annually in phone bills, landline, internet, cable television services, and office supply stores. In addition to 2% cash back on up to the first $25,000 as well, on gas stations and dining each calendar year, and finally unlimited 1% cash back on all other purchases.
Points earned with the Ink Business Cash® Credit card do not expire, so can you redeem them anytime. Moreover, you get access to the Ink Mobile app where you can file receipts and manage employee spending.
As for its APR, you are provided with an 0% intro APR period for 12 months, and after that period the APR will range between 13.24% to 19.24%. It also charges you a foreign transaction fee of 3%.
Terms and conditions apply.
3. CitiBusiness® / AAdvantage® Platinum Select® World Elite Mastercard®
The CitiBusiness®/ AAdvantage® Platinum Select® Mastercard® is a great option for businesses that frequently travel with American Airlines. It allows them to earn a 50,000-mile welcome bonus after spending $2,500 in the first four months. In addition, it offers double mile earnings on eligible American Airlines purchases, gas, and select business purchases.
The CitiBusiness®/ AAdvantage® Platinum Select® Mastercard® allows business owners to add employee cards at no extra cost and earn AAdvantage miles with their spending. Moreover, you also earn an American Airlines Companion Certificate for a domestic ticket each year after spending $30,000 or more with the card.
The card also provides you with special discounts on American Airlines flights to select destinations, with Reduced Mileage Awards, where cardholders can save up to 7,500 miles per round-trip flight.
Travel benefits offered by the CitiBusiness®/ AAdvantage® Platinum Select® World Elite Mastercard® do not end there. The card allows you to check-in four bags each year free of charge, and provides you with preferred boarding on flights, with a 25% discount on in-flight food and beverages.
As for fees, the CitiBusiness®/ AAdvantage® Platinum Select® waives its annual fee for the first year and then charges $99. Its APR for purchases and balance transfers ranges between 15.99% to 24.99% based on your creditworthiness, and lastly, you are charged no foreign transaction fees.
Terms and conditions apply.
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This article includes the author's opinions, reviews, and analyses alone that have not been reviewed, endorsed, or approved by any of these entities. Please note that the information regarding each card's offer is believed to be accurate as of the date it was written and as card offers change regularly; reasonable efforts are made to maintain accurate information.