A business credit card is offered from a variety of lenders. The application process is similar to a standard credit card application. Business borrowers can apply with or without employer codes, which makes it easier for any type of business to obtain a business credit card.
To obtain the business credit cards, the borrower must complete the application. In general, business credit cards can often be easier to apply than non-revolving business loans because they are usually automated with instant credit decisions.
BUSINESS CREDIT CARD
Just like the post about “Some things to know about general business credit“, this post today, Info Credit Free provides to people information about the business credit card. This article includes two parts, they are “What is the business credit card” and “How to choose the best credit card for your business?”
1. What is the business credit card
Business credit cards are credit cards used instead of personal ones. Business credit cards are available for businesses of all sizes. They can help businesses build credit profiles to improve credit terms in the future. Small business credit cards can also be backed by the personal assurance that personal accountability can also help structure credit terms.
2. How to choose the best credit card for your business
2.1. How do people want to use the card?
The first step in picking the right business credit card is determining what the needs are for a credit card:
- Do people need to make the purchase or pay the debt off over time?
- Do people need the business credit card to create cash flow for the business?
- Are people looking for a card to start building a credit history for the business?
- Do people want to earn rewards from the business spending?
Some places to get the business credit card:
|Business Credit Card||Best For:||Rewards Rate||Annual Fee||CreditCards.com Rating|
|Ink Business UnlimitedSM Credit Card||Flat-rate rewards on business purchases||1.5% unlimited||$0||3.6 / 5|
|The Blue BusinessSM Plus Credit Card from American Express||Flexible credit limit and long intro 0% APR period||2X||$0||4.4 / 5|
|Ink Business CashSM Credit Card||Cashback with high rewards rate on office supplies||5% on office supplies, internet*||$0||3.4 / 5|
|Capital One® Spark® Cash for Business||Free employee cards and unlimited 2% cash back||2% unlimited||$0 intro for the first year; $95 thereafter||4.4 / 5|
|Ink Business PreferredSM Credit Card||Sign-up bonus and high rewards on select business categories||3X on travel, select business categories||$95||3.9 / 5|
|Capital One® Spark® Cash Select for Business||No expiration on rewards and small business perks||1.5% unlimited||$0||3.7 / 5|
|Bank of America® Business Advantage Cash Rewards Mastercard® credit card||Business travel purchases and bonus for Business Advantage clients||3% at gas stations and office supply stores**||$0||2.5 / 5|
|SimplyCash® Plus Business Credit Card from American Express||High rewards rates on business purchases||5% at U.S. office supply stores, U.S. wireless telephone services||$0||3.0 / 5|
|Capital One® Spark® Miles for Business||Bonus miles and international use||2X on all purchases||$0 intro for first year; $95 thereafter||4.2 / 5|
|The Business Gold Rewards Card from American Express OPEN||Flexible rewards to choose your own categories||3x points in 1 of 5 categories, 2x points in remaining 4 categories, 1x points on everything else||$175, waived first year||3.8 / 5|
2.2. What are the spending habits?
Look at the amount people can charge per month and whether people are sure to pay the bills by the end of the month. If people need the flexibility to make huge purchases, people can choose a token that does not impose a credit limit.
If you are able to bring in a balance, you may want to stay away from charge cards because you may be fined for not paying your bills, although American Express now has a program that allows you to pay over time. if you qualify. And, if you think you need more flexibility in paying your balance, you can find a more flexible time card.
2.3. What types of rewards are people interested in?
If people think the rewards cards are the best options, the next step is to figure out the preference for rewards.
- Do the employees travel often for business, and are people loyal to a particular airline or hotel?
- If people want more flexible redemption options, people might consider a flexible points card.
- If people are looking for simplicity, a cash back card is probably the best bet.
2.4. What types of spending do you do?
- If people spend a lot at office supply stores, people might look at Ink Business Cash, which offers 5% on the first $25,000 spent at office supply stores and the internet.
- If people host a lot of client lunches, people might look at a card like the Bank of America Business Advantage Cash Rewards Mastercard, with 2% back at restaurants.
- If people travel often, people should look at a card like The Business Platinum Card from American Express OPEN.
- People may earn a higher rewards rate by choosing a flat-rate card that offers the same rewards rate on every purchase.
2.5. Do people mind paying an annual fee?
A lot of business credit cards come with annual fees, and the fees are often well worth it. If people run some calculations, people will often find that people will get far more value out of a card with an annual fee than a card without one.
Total at end of 1st yearCapital
|Card||Ongoing rewards||Sign-up bonus||Annual fee|
|One Spark Cash Select year capitals||1.5%*$1,000 a mth*12 mths=$180||$200/$3,000 spend in 3 mths||$0||$380|
|Capital One Spark Cash for Business||2%*$1,000 a mth*12 mths=$240||$500/$4,500 spend in 3 mths||$95, waived first yr||$740|
Things change in the second year:
|Card||Ongoing rewards||Annual fee||Total at end of 1st year|
|Capital One Spark Cash Select for Business||1.5%*$1,000 a mth*12 mths=$180||$0||$180|
|Capital One Spark Cash for Business||2%*$1,000 a mth*12 mths=$240||$95, waived first yr||$145|
As you can see, in the second year, the card with no annual fee is a better fit with a lower spend.
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