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Priority Destinations® World Elite Business Mastercard
Priority Destinations® World Elite Business Mastercard
- 17.99% variable based on the Prime Rate Regular Purchase APR
- 18.00% Fixed Cash Advance APR
At a Glance
The Priority Destinations World® Elite Business Mastercard is designed to fit into the wallets of small business owners with relatively low business expenses who travel from time to time for work. The 2X Priority Miles on all purchases make it easy to earn rewards and turn them in for free and discounted flights.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- 2X Priority Miles on every purchase on up to $50,000 annually
- 1X Priority Miles after you reach the yearly cap
- No foreign transaction fees
- Regular Purchase APR: 17.99% variable based on the Prime Rate
- Cash Advance APR: 18.00% Fixed
- Cash Advance Transaction Fee: Either $10 or 3% of the amount of each cash advance, whichever is greater
- Penalty APR: 18.00% Fixed
- Annual Fee: $75
- Late Payment Penalty Fee: Up to $39
- Return Payment Penalty Fee: $24.95
- You run a small business that does't plan to spend more than $50,000 per year with the card
- You want to cash in rewards for travel, in order to get the most value out of their Priority Miles
- You need a business card with a low annual fee and no foreign transaction fees
- You're interested in adding multiple cards to one account for employee use, but want a consolidated billing statement
Webster Visa® Business Real Rewards Card
Webster Visa® Business Real Rewards Card
- 19.24% to 28.24% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 19.24% to 28.24% variable based on creditworthiness and the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
- 0% for 6 months from account opening date Intro Purchase APR
At a Glance
The Webster Visa® Business Real Rewards Card earns cardholders 1.5 points for every dollar they spend. There is no limit to how many points you can earn with this card. New cardholders also earn 2,500 points on their first purchase. What’s more, new cardholders can take advantage of 0% APR for six months on purchases and balance transfers. All of these features are available with no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Earn 1.5 points for every dollar you spend
- Earn 2,500 bonus points after your first purchase
- 0% introductory APR for 6 months on balance transfers and purchases
- Intro Purchase APR: 0% for 6 months from account opening date
- Regular Purchase APR: 19.24% to 28.24% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for 6 months from account opening date
- Balance Transfer APR: 19.24% to 28.24% variable based on creditworthiness and the Prime Rate
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Penalty APR: 32.49% variable based on the Prime Rate
- Foreign Transaction Fee: Up to 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $39
- Return Payment Penalty Fee: $35
- Over Limit Penalty Fee: $39
- You don’t want to pay an annual fee to use a credit card
- You want to earn points on all your business purchases
- You would like to earn bonus points when you sign up
- You like having 0% APR for 6 months on purchases
- You need to transfer a credit card balance and intend to pay it off in 6 months
PNC BusinessOptions® Visa Signature® Credit Card
PNC BusinessOptions® Visa Signature® Credit Card
- 15.99% to 21.99% variable based on creditworthiness Regular Purchase APR
- 15.99% to 21.99% variable based on creditworthiness Balance Transfer APR
- 26.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The PNC BusinessOptions® Visa Signature® Credit Card is a powerful all-in-one card that offers flexibility based on how you wish to use it for your company.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Choose either a pay-in-full option or a revolving credit option to pay off your balance
- Choose between cash rebates, PNC points®, and travel rewards as your card's rewards program
- No foreign transaction fees
- No fees for additional employee cards, Add your company's logo to your card
- Regular Purchase APR: 15.99% to 21.99% variable based on creditworthiness
- Balance Transfer APR: 15.99% to 21.99% variable based on creditworthiness
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 26.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater ($75 maximum)
- Penalty APR: 33.99% variable based on the Prime Rate
- Annual Fee: $0 to $500
- Late Payment Penalty Fee: Up to $49
- Return Payment Penalty Fee: $35
- Over Limit Penalty Fee: Up to $69
- You own or operate a small business
- You want 1.5% cash back on purchases through the revolving card account option
- You require a significant amount of spending to cover company expenses
- You want the flexibility to choose your line of credit type as well as the type of rewards program that will apply to your card
- You intend to have additional cards issued to employees
- You want a card with no foreign transaction fees
- You're looking for a centralized account management portal that gives you real-time control over how your card (and your employees’) is used
Security Service Power Business Cash Back Credit Card
Security Service Power Business Cash Back Credit Card
- 14.49% to 17.49% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 7.90% Balance Transfer APR
- 18.00% variable based on the Prime Rate Cash Advance APR
- 0% for 6 months from account opening date Intro Purchase APR
At a Glance
The Security Service Power Business Cash Back Card gives companies the purchasing power they need with essential rewards on top. The card earns 3% cash back in several categories, plus enjoys 0% intro APR for six months- all for no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- 3% back on travel, gas, dining, and wholesale clubs
- 1% cash back on all other purchases
- Rewards never expire
- Intro Purchase APR: 0% for 6 months from account opening date
- Regular Purchase APR: 14.49% to 17.49% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for 6 months from account opening date
- Balance Transfer APR: 7.90%
- Balance Transfer Transaction Fee: 3% of the amount of each transfer
- Cash Advance APR: 18.00% variable based on the Prime Rate
- Foreign Transaction Fee: 1.5% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: $25
- Return Payment Penalty Fee: $20
- Over Limit Penalty Fee: $15
- You live or operate a company in Texas, Colorado, or Utah
- You spend heavily on gas, dining, or business travel
- You already carry a balance or plan to do so with your new card
- You do't want to pay an annual fee
Ocean Bank Business Rewards Preferred Credit Card
Ocean Bank Business Rewards Preferred Credit Card
- 14.99% to 22.99% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 14.99% to 22.99% variable based on creditworthiness and the Prime Rate Balance Transfer APR
- 26.99% variable based on the Prime Rate Cash Advance APR
- 0% for 6 months from account opening date Intro Purchase APR
At a Glance
The Ocean Bank Business Rewards Preferred Credit Card puts your business spending to work; whether you’re lunching at your favorite restaurant or making purchases for your business, for every $1 you spend, you’ll earn unlimited points that can be redeemed for cash, brand name products, and travel opportunities. Business owners will love the introductory APR offer, since 0% APR on both balance transfers and purchases for 6 months after your account is opened can add up to big business savings.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- 0% introductory APR on purchases and balance transfers for 6 billing cycles
- Annual fee of $75 waived for first year; annual fee waived each year your company spends $15,000 or more
- Earn 1 point per $1 spent on every purchase; earn unlimited points
- Redeem points for cash rewards, travel rewards, and shopping rewards
- Intro Purchase APR: 0% for 6 months from account opening date
- Regular Purchase APR: 14.99% to 22.99% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for 6 months on transfers made within 6 months from account opening date
- Balance Transfer APR: 14.99% to 22.99% variable based on creditworthiness and the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 4% of the amount of each transfer, whichever is greater
- Cash Advance APR: 26.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Penalty APR: 23.99% if account is 60 days or more past due
- Annual Fee: None for the first year. After that, $75
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $37
- Return Payment Penalty Fee: Up to $37
- Over Limit Penalty Fee: $25 fee per billing cycle if a transaction above the credit limit posts to the account
- You're a business owner who will use this card to spend $15,000 or more annually
- You want to pay down existing debt or make a large purchase to take advantage of the introductory APR offer
- You want a business rewards card with flexible point redemption options
- You want to earn unlimited points at a rate of 1 point per $1 spent on every qualifying net purchase
CCU Business Visa Platinum
CCU Business Visa Platinum
- 13.70% to 23.70% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 13.70% to 23.70% variable based on creditworthiness and the Prime Rate Balance Transfer APR
- 13.70% to 23.70% variable based on creditworthiness and the Prime Rate Cash Advance APR
At a Glance
The CCU Business Visa Platinum Card is a no-sense business credit card from Consumers Credit Union. The card features a highly competitive APR, complimentary employee cards, and sophisticated account management tools. The card also features no annual fee and no additional fees for cash advances.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Additional employee cards at no extra cost
- No balance transfer fees
- No cash advance fees
- No annual fee
- Auto rental insurance
- Travel accident insurance coverage up to $500,000
- Regular Purchase APR: 13.70% to 23.70% variable based on creditworthiness and the Prime Rate
- Balance Transfer APR: 13.70% to 23.70% variable based on creditworthiness and the Prime Rate
- Cash Advance APR: 13.70% to 23.70% variable based on creditworthiness and the Prime Rate
- Cash Advance Transaction Fee: 5% of the amount of each cash advance or $5, whichever is greater
- Foreign Transaction Fee: 1% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: $25 when the minimum is not made within 5 days
- Return Payment Penalty Fee: $35
- Over Limit Penalty Fee: $25 per occurence
- You already bank with Consumers Credit Union
- You want a straightforward business card with a great APR
- You don’t want to pay an annual fee
Wells Fargo Business Platinum Credit Card
Wells Fargo Business Platinum Credit Card
- 15.99% to 25.99% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 28.74% variable based on the Prime Rate Cash Advance APR
- 0% for 9 months from account opening date Intro Purchase APR
At a Glance
The Wells Fargo Business Platinum Credit Card is a good quality rewards and cash back credit card for small and medium-sized businesses. Companies can benefit not only from rewards, but also online account management and up to 99 employee cards at no additional cost.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- No foreign transaction fees
- Earn 1.5% cash back on every $1 spent
- Choice of cash back or rewards points
- Intro Purchase APR: 0% for 9 months from account opening date
- Regular Purchase APR: 15.99% to 25.99% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for the first 9 months from account opening date
- Balance Transfer Transaction Fee: Either $10 or 4% of the amount of each transfer, whichever is greater
- Cash Advance APR: 28.74% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Late Payment Penalty Fee: Up to $50
- Return Payment Penalty Fee: $29
- Over Limit Penalty Fee: $39
- You run a business with annual sales of up to $2 million
- You want the option to select between cash back or rewards points
- You want a business card with no foreign transaction fees
- You need a simple way to manage your company’s everyday expenses
- You want a business card with a 0% introductory APR
Wells Fargo Business Elite Card®
Wells Fargo Business Elite Card®
- 11.99% variable based on the Prime Rate Regular Purchase APR
- 11.49% variable based on the Prime Rate Balance Transfer APR
- 28.74% variable based on the Prime Rate Cash Advance APR
At a Glance
The Wells Fargo Business Elite Card® offers an exceptional APR and impressive online account controls for medium to large companies with average yearly sales above $1 million. New cardholders can also receive a one-time $1000 cash back bonus or 100,000 bonus points when they enroll and spend $25,000 in the first three months from opening the account.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee for the first year
- Up to 200 additional cards at no extra cost
- Earn 1.5% cash back on every $1 spent
- Earn 1 point on every $1 spent
- Get a one-time $1,000 cash bonus or 100,000 bonus points when you spend $25,000 in the first three months from account opening date
- Regular Purchase APR: 11.99% variable based on the Prime Rate
- Balance Transfer APR: 11.49% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Varies based on your specific offer
- Cash Advance APR: 28.74% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Annual Fee: $0 for the first year; $125 after that
- Late Payment Penalty Fee: Up to $75
- Return Payment Penalty Fee: $29
- Over Limit Penalty Fee: Up to $75
- You have a business with over $1 million in yearly sales
- You have excellent credit and want a tough-to-beat purchase APR
- You want great spending controls on all employee cards
- You want a dedicated customer support service
Union Bank Business Platinum™ Visa® Credit Card
Union Bank Business Platinum™ Visa® Credit Card
- 13.74% to 21.74% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 13.74% to 21.74% variable based on creditworthiness and the Prime Rate Balance Transfer APR
- 29.00% variable based on the Prime Rate Cash Advance APR
- 0% for 6 months from account opening date Intro Purchase APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- 0% introductory APR for 6 months from account opening date on purchases and balance transfers
- Low regular APR after introductory APR offer ends
- No annual fee
- Chip security and 24/7 online account access
- Intro Purchase APR: 0% for 6 months from account opening date
- Regular Purchase APR: 13.74% to 21.74% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for 6 months from account opening date
- Balance Transfer APR: 13.74% to 21.74% variable based on creditworthiness and the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 5% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.00% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $15 or 5% of the amount of each cash advance, whichever is greater
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $39
- Return Payment Penalty Fee: $35
- Over Limit Penalty Fee: $35
- N/A
Citizens Bank Business Platinum Mastercard®
Citizens Bank Business Platinum Mastercard®
- 13.24%, 19.24%, 22.24% or 24.24% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 28.49% variable with the market based on the Prime Rate Cash Advance APR
- 0% for 6 months from account opening date Intro Purchase APR
At a Glance
The Citizens Bank Business Platinum Mastercard® isn’t particularly enticing but might be handy for product-based retail start-ups that require only a small amount of overhead (up to $25,00) whose owners have a less-than-stellar credit score and otherwise can’t qualify for better business card offers.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- 0% introductory APR on purchases for 6 months after account opening
- Lower interest rates than a personal credit card
- Zero liability for unauthorized account purchases
- Intro Purchase APR: 0% for 6 months from account opening date
- Regular Purchase APR: 13.24%, 19.24%, 22.24% or 24.24% variable based on creditworthiness and the Prime Rate
- Cash Advance APR: 28.49% variable with the market based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or up to 5% of each advance, whichever is greater
- Penalty APR: 27.49%
- Foreign Transaction Fee: Either $1.50 or 3% of the U.S. dollar amount of transactions, whichever is greater.
- Late Payment Penalty Fee: $39
- Return Payment Penalty Fee: $20
- Over Limit Penalty Fee: $39
- You're a small business owner looking for a simple and straightforward card
- You will take advantage of an introductory 0% APR offer on purchases for the first six months
- You want a card with no annual fees
- You don’t mind passing up rewards or signup bonuses
You've viewed 5 of 152 credit cards
What Is a Business Credit Card?
A business credit card can be a powerful tool for entrepreneurs looking to separate their personal and business expenses. It is a financial product specifically designed for business owners to manage their business expenses. It works just like a personal credit card but with added features tailored to businesses’ needs.
One of the main advantages of using a business credit card is the ability to keep your personal and business expenses separate, which makes it easier to track and manage your business finances. This separation can also help you when filing your taxes, as you can easily identify and deduct your business expenses.
A business credit card also provides you with a line of credit that you can use to make purchases for your business. This can be especially useful if you need to make large purchases or if you experience cash flow issues. It gives you the flexibility to make necessary purchases and pay them off over time.
Additionally, a business credit card often comes with certain perks and benefits specifically tailored to businesses. These can include rewards programs, cash back rewards, travel rewards, and discounts on business-related expenses. These perks can help you save money and earn valuable rewards as you spend on your business.
What are the Benefits of Business Credit Cards?
Using a business credit card can offer a range of benefits for companies of all sizes. Let’s take a closer look at some of the key advantages:
- Simplified Expense Tracking: With a business credit card, you can easily track and categorize your business expenses. Most business credit cards provide detailed statements, making monitoring your spending simple and identifying areas where you can cut costs.
- Improved Cash Flow Management: A business credit card provides you with a revolving line of credit, allowing you to make purchases even when you are short on cash. This can be particularly helpful during slow business periods or when unexpected expenses arise.
- Separation of Personal and Business Expenses: Separating personal and business expenses is crucial for accurate financial reporting and tax purposes. A business credit card helps you maintain this separation, making it easier to identify and deduct your business expenses during tax season.
- Access to Business-Specific Perks and Rewards: Many business credit cards offer rewards and benefits tailored to businesses’ needs. These can include cashback on business purchases, travel rewards, discounts on office supplies, and more. Taking advantage of these perks can help you save money and earn valuable rewards for your business.
- Building Business Credit: By using a business credit card responsibly and making timely payments, you can build a positive credit history for your business. This can be beneficial when you need to secure financing in the future or negotiate favorable terms with suppliers.
Can Startups Get Business Credit?
Most people assume you need a physical location or an LLC to qualify for a business card. This, however, isn’t true. You do need a registered business, but the qualifications of what a “business” is are surprisingly broad.
If you are a freelancer, sell your goods on eBay or Amazon, or even teach music to local children, you may qualify for a business credit card. If you engage in any work where you earn money—without being an employee for someone else—you probably qualify as having a business.
Because of these loose requirements, business credit cards are a viable option for startups and other non-traditional or established companies.
What to Look for in a Business Credit Card
Rewards Program
Travel business cards are known for their generous bonuses and rewards programs. Even if you don’t own a business that requires frequent travel, you can still apply for a travel business card and enjoy its benefits. By using the card for company expenses, you can earn points or miles that can be redeemed for a well-deserved vacation.
For general travel cards, purchases in select categories, such as flights or restaurants, earn points at a higher rate. Hotel and airline co-branded cards offer additional points for specific categories and purchases directly from the brand.
Other Features to Consider
When choosing a business card, there are other features to look for:
- Free Employee Cards: If you have employees who regularly make company expenses, look for a credit card that allows you to issue additional cards at no extra cost. This is a popular perk offered by many issuers.
- Business Tools: Some issuers provide resources to help you manage your finances more efficiently. These can include integration between your account statement and accounting software, custom expense reports, and alerts for irregular activity.
- Intro APR: If you anticipate carrying a balance on your card, look for one that offers an introductory period with no interest charges. This can be a valuable incentive, especially for larger purchases or multiple small expenses.
How to Apply for a Business Credit Card
Applying for a business credit card is straightforward but requires careful preparation.
Check Your Credit Score
Knowing your credit score before applying for a business credit card is essential. Some issuers require business credit to apply for credit cards, while other banks prefer to use your personal credit score to gauge suitability. The credit card issuer will evaluate your creditworthiness based on this score. If your score is low, take steps to improve it before applying.
Eligibility
Next, you’ll need to determine what type of business you operate. If you are a freelancer, tutor, or operate any other business independently, you will need to apply for a business card as a sole proprietor.
Required Documents and Information
Typically, when applying for a business card as a sole proprietor, there isn’t much more information than you’d expect from a personal credit card application. There are, however, two bits of information to keep an eye out for:
Info | Explained |
---|---|
① The legal name and contact address of your business | Even if you don’t provide your personal information, you will need to provide all relevant contact information for your business, including the company’s legal name, any names your company is doing business under, and the mailing and phone contact information. |
② Basic information about your business | Most banks and lenders want to know some basic facts about your company. These facts include your industry type, the structure of your company and number of employees, and your annual revenue. |
③ Tax ID number |
Most business card applications require a tax ID number, which is the number the IRS uses to designate your company when you file your taxes. Many sole proprietorships have no employees – and never plan to hire additional help. Still, business credit card applications often ask for an Employer Identification Number (EIN). An EIN is basically an SSN for a business – it is the same as a tax ID. If you are a freelancer, tutor, run an online shop, or run some other solo venture, chances are you won’t need your EIN or tax ID. The IRS stipulates that an EIN is only necessary for those companies that:
|
④ Estimated monthly spend on the card | Lenders want to ensure that your business’ finances aren’t stretched too thin, so expect to answer basic questions about how much you – and your employees – typically place on credit cards each month. |
⑤ Personal credit history | If you need to provide a personal guarantee, expect to provide all relevant credit information for the primary account holder. This information includes full legal name, home contact information (phone number, mailing address, e-mail), and your Social Security Number. |
If none of these apply to your side hustle – congratulations – you will only need to provide your personal SSN.
Research and Apply
Look for reputable credit card issuers that offer business credit cards. Research their offerings, interest rates, fees, and rewards programs to find the best fit for your business. Once you’ve chosen a credit card issuer, visit their website and fill out the online application form. Provide accurate information, including your personal details and business information. Double-check the application for any errors before submitting it.
Once your application is approved, you’ll receive your business credit card in the mail. Activate the card according to the issuer’s instructions and use it for your business expenses.
Related Article: How to Use An EIN to Get a Business Credit Card
Tips for Managing Business Credit Card Expenses
Effectively managing your business credit card expenses is crucial for maintaining financial stability and maximizing the benefits of your card. Here are some tips to help you manage your business credit card expenses:
- Create a Budget: Establish a budget for your business expenses and stick to it. This will help you allocate funds to different categories and avoid overspending. Regularly review your budget and adjust as needed.
- Use Expense Tracking Tools: Take advantage of the expense tracking tools your business credit card issuer provides. These tools can help you monitor your spending, categorize expenses, and generate reports for accounting and tax purposes.
- Set Spending Limits: If multiple employees can access your business credit card, consider setting individual spending limits. This will help prevent overspending and ensure that expenses are within budget.
- Pay on Time: Timely payment is crucial for maintaining a good credit history and avoiding late payment fees. Set reminders or automate your payments to ensure that your credit card bills are paid on time.
- Review Statements Regularly: Review your credit card statements regularly to verify the accuracy of charges and identify fraudulent or unauthorized transactions. Report any discrepancies to your credit card issuer immediately.
- Minimize Balance Carrying: Whenever possible, pay off your credit card balance in full each month to avoid accruing interest charges. If carrying a balance is necessary, make a plan to pay it off as soon as possible.
- Keep Personal and Business Expenses Separate: Separating personal and business expenses is essential for accurate financial reporting and tax purposes. To maintain proper separation, avoid using your business credit card for personal expenses.
Tips for Building Business Credit
A business credit card can be a valuable tool for building and improving your business credit. By using your card responsibly and making timely payments, you can establish a positive credit history for your business. Here are some tips for building and improving your business credit with a business credit card:
- Use Your Card Regularly: Make regular purchases with your business credit card and pay off the balance in full each month. This demonstrates that you can responsibly manage credit and make timely payments.
- Monitor Your Credit Utilization: Credit utilization refers to the percentage of your available credit that you are using. To maintain a healthy credit score, aim to keep your credit utilization ratio below 30%. Paying off your balance in full each month can help you achieve this.
- Make Timely Payments: Pay your credit card bills on time to avoid late payment fees and negative impacts on your credit score. Consider setting up automatic payments to ensure that your bills are always paid on time.
- Avoid Maxing Out Your Credit Card: Maxing out your credit card can negatively impact your credit score. Instead, keep your credit card balances well below the credit limit to demonstrate responsible credit usage.
- Regularly Check Your Credit Report: Monitor your business credit report regularly to ensure its accuracy and identify any errors or fraudulent activity. Address any discrepancies promptly by contacting the credit reporting agencies.
- Establish Relationships with Creditors: Building relationships with your creditors can benefit your business credit. Maintain open lines of communication and notify them of any changes or challenges your business may face.
- Be Patient: Building a strong business credit history takes time. Be patient, make responsible credit decisions, and monitor your progress regularly. Over time, you will see improvements in your business credit score.
FAQs
Here are some of the most frequently asked questions concerning business cards:
- You must meet specific criteria to qualify for a business credit card:
- You must operate a for-profit enterprise – even if you haven’t made a profit yet
- If you receive a 1099 tax form from your employer, you qualify as an independent contractor
- You must state your current business income and any anticipated growth
- Yes. While there are no unsecured credit cards for businesses with bad credit, there are secured cards for small businesses. These secured cards require a deposit but offer many of the perks of other top business cards. Unfortunately, the deposit may be a hindrance to many potential applicants.
- Most card issuers require a business to have a good credit score. A good credit score range is anything about 680 on your FICO Score. If your company doesn’t have a credit history or has poor credit, however, considering using your own credit score to improve the chances of getting a business card.
- An EIN is also known as an Employer Identification Number or a tax ID. While you don’t need an EIN to apply for a business credit card, you can use this number. To apply using this tax ID number, you will need to contact specialty business credit bureaus to establish a file. Once established, you can sue the EIN to apply for credit in most cases.
- Yes. Most business credit cards offer significant credit lines to help companies finance significant purchases and improve cash flow. Business card lines of credit can be more than $50,000, with big signup bonuses. Some cash back cards, for example, offer over $50,000 per calendar year in value, but with huge spending requirements – sometimes requiring spending $15,000 within 90 days.
- Yes. American Express offers a business version of both the Platinum Card and the Gold Card. The Business Platinum Card from American Express acts just like any other charge card. This means businesses can spend beyond your credit limit, helping to increase cash flow.
- Rewards are one of the most important things to consider when looking for good business cards. These rewards can be broken down into the following subsections:
- Signup Bonuses: Many cards today provide impressive signup bonuses worth thousands of dollars. Travel business cards, in particular, can be very generous with their introductory bonuses.
- Rewards Programs: Travel rewards business cards involve a rewards or loyalty program that earns points or miles with qualifying purchases. For general travel cards, purchases in select categories – like flights or restaurants – accumulate points at a multiplied rate. Co-branded cards through airlines and hotels will also provide additional points on specific groups, as well as when you make purchases directly with these brands.
- Cash Back: Cashback is the other significant rewards setup found in business cards. Like travel cards, select categories – think office supply stores and telecommunications services – can earn you cash back at an accelerated rate.
- Some of the other factors you should examine when selecting a business card include:
- Additional Employee Cards: Business credit cards offer an efficient way to keep track of company spending, and if you have employees who regularly make company expenses, look for a credit card that allows you to issue additional cards for your staff. Other cards issued at no extra cost is a popular perk, so you’ll find it in multiple offers.
- 0% Intro APR: Another popular feature in business cards is introductory 0% APR periods. You may have plenty of use for your card, be it for multiple small purchases or one big-ticket expense, so paying off a balance over time with no interest charges to worry about is a welcome incentive. These promotional periods range from six months to over 12, so plan your shopping accordingly to maximize your interest-free grace period.
- Business Management Software Tools: Issuers can make it easy to keep track of your money’s movements thanks to resources like the integration between your account statement and accounting software, custom expense reports, and irregular activity alerts.
Conclusion
A business credit card is a valuable tool for businesses (and entrepreneurs) looking to separate their personal and business expenses. It allows for easy tracking and management of business finances, simplifies expense tracking, and improves cash flow management. Business credit cards also offer perks and rewards tailored to businesses, help build business credit, and are accessible to startups and non-traditional businesses.
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