Starting a new business is an exciting venture, but it also comes with its fair share of financial challenges. One of the most crucial tools for managing expenses and building credit early on is a business credit card. Choosing the right card can be a game-changer, providing access to essential funding, rewards, and tools to streamline your business operations.
This guide will navigate you through the best credit card options for new business owners in 2024, helping you make an informed decision that aligns with your specific needs and goals.
| Credit Card | Key Features | Best For |
|---|---|---|
| American Express Blue Business Cash™ Card | - 2% cash back on all eligible purchases on up to $50,000 per calendar year (then 1%), - No annual fee, - Expanded buying power (ability to spend beyond credit limit), - Purchase protection, - Car Rental Loss and Damage Insurance, - Baggage Insurance Plan. | Businesses seeking straightforward cash back rewards on all purchases, especially those with moderate spending volume. Ideal for businesses prioritizing no annual fee and wanting spending flexibility. |
| Chase Ink Business Preferred® Credit Card | - 3x points on travel and select business categories (shipping, internet, cable, phone, advertising with social media sites and search engines, up to $150,000 spent annually), - 1x point on all other purchases, - Points worth 25% more when redeemed for travel through Chase Ultimate Rewards, - Trip cancellation/interruption insurance, - Auto rental collision damage waiver. | Businesses with significant travel expenses and spending in bonus categories like shipping and advertising. Suited for those who value travel rewards and are willing to pay an annual fee for premium benefits. |
| Capital One Spark Cash Plus | - Unlimited 2% cash back on every purchase, - Earn a one-time cash bonus of $1,000 once you spend $10,000 in the first 3 months from account opening, - No foreign transaction fees, - Free employee cards, - Purchase security, - Extended warranty. | Businesses looking for a high flat-rate cash back reward on all purchases and require employee cards. Good for businesses that travel internationally and value simple reward structures. |
| Brex Card for Startups | - Rewards tailored for startups (e.g., points on software, dining, travel), - No personal guarantee required, - Expense management tools, - No annual fee, - Higher credit limits based on cash balance. | Venture-backed startups seeking higher credit limits without a personal guarantee and rewards relevant to startup spending habits. Especially useful for startups that heavily utilize software and SaaS platforms. |
| U.S. Bank Business Triple Cash Rewards Visa® Card | - 3% cash back on gas and EV charging stations, office supply stores, cell phone service providers, and restaurants (on the first $25,000 in combined eligible purchases each cardmember year), - 1% cash back on all other eligible net purchases, - $500 statement credit after spending $4,500 on eligible purchases within the first 150 days of account opening, - No annual fee. | Businesses with significant spending in gas, office supplies, cell phone services, and restaurants. Excellent for budget-conscious businesses seeking a strong introductory bonus and no annual fee. |
| Wells Fargo Business Platinum Credit Card | - Low introductory APR on purchases and balance transfers (for a limited time), - Rewards are not the focus, but card offers tools for managing business expenses, - Free employee cards, - Overdraft protection, - Zero liability protection. | Businesses prioritizing a low introductory APR for managing debt and balance transfers. Suitable for businesses that primarily need a credit line for managing cash flow rather than earning rewards. |
| Amazon Business Prime American Express Card | - 5% back on purchases at Amazon.com, Amazon Business, AWS, and Whole Foods Market with an eligible Prime membership, or 3% back without a Prime membership, - No annual fee (for Basic card; Prime version requires a Prime membership), - Extended payment terms on eligible Amazon purchases, - Purchase protection. | Businesses that make frequent purchases on Amazon and have an Amazon Prime membership. Offers excellent rewards for Amazon spending and extended payment options. |
| Capital One Spark Classic | - 1% cash back on all purchases, - Designed for businesses with fair credit, - Helps build business credit. | Businesses with fair credit looking to establish or rebuild their creditworthiness. A good option for those who may not qualify for cards with better rewards programs. |
| Discover it® Business Credit Card | - 1.5% cash back on all purchases, - Discover matches all the cash back earned at the end of the first year, - No annual fee, - Free employee cards, - Purchase protection. | Businesses seeking a simple cash back program with a first-year cash back match. Suitable for businesses that want to maximize their rewards in the first year. |
| Bank of America® Business Advantage Customized Cash Rewards Credit Card | - 3% cash back in the category of your choice (options include gas stations and EV charging stations, office supplies, travel, TV/telecom & wireless, or business consulting services), - 2% cash back on dining, - 1% cash back on all other purchases, - $300 statement credit after spending $3,000 in the first 90 days, - No annual fee. | Businesses seeking customizable rewards and a strong introductory bonus. Ideal for businesses with significant spending in a specific category like gas or office supplies. |
Detailed Explanations
American Express Blue Business Cash™ Card: This card offers a straightforward 2% cash back on the first $50,000 spent each year, making it a great option for businesses that want to earn rewards on every purchase. The lack of an annual fee further enhances its appeal, and the expanded buying power provides additional financial flexibility.
Chase Ink Business Preferred® Credit Card: This card is a powerhouse for businesses with significant travel expenses or spending on advertising, shipping, and telecommunications. The 3x points on these categories, combined with the 25% bonus when redeeming for travel through Chase Ultimate Rewards, can lead to substantial savings.
Capital One Spark Cash Plus: With a flat 2% cash back on all purchases and a generous sign-up bonus, this card is an excellent choice for businesses seeking simplicity and high rewards. The absence of foreign transaction fees also makes it ideal for international travel or online purchases from foreign vendors.
Brex Card for Startups: Designed specifically for venture-backed startups, the Brex card offers tailored rewards and higher credit limits without requiring a personal guarantee. Its expense management tools and focus on startup-relevant spending categories make it a valuable asset for growing businesses.
U.S. Bank Business Triple Cash Rewards Visa® Card: This card provides 3% cash back on a range of common business expenses, including gas, office supplies, and cell phone services. The lack of an annual fee and a solid introductory bonus make it an attractive option for budget-conscious businesses.
Wells Fargo Business Platinum Credit Card: While not focused on rewards, this card offers a low introductory APR on purchases and balance transfers, making it a useful tool for managing debt and cash flow. The free employee cards and overdraft protection further enhance its utility.
Amazon Business Prime American Express Card: This card is a must-have for businesses that frequently purchase from Amazon. The 5% back on Amazon purchases with an eligible Prime membership can translate to significant savings, and the extended payment terms provide added flexibility.
Capital One Spark Classic: Designed for businesses with fair credit, this card offers a simple 1% cash back on all purchases and helps build business credit. It's a good option for those who may not qualify for cards with better rewards programs.
Discover it® Business Credit Card: This card offers 1.5% cash back on all purchases, and Discover matches all the cash back earned at the end of the first year, doubling your rewards. With no annual fee and free employee cards, it's a cost-effective option for small businesses.
Bank of America® Business Advantage Customized Cash Rewards Credit Card: This card allows you to choose a 3% cash back category that aligns with your business spending habits, such as gas stations, office supplies, or travel. This customization, combined with a solid introductory bonus and no annual fee, makes it a versatile choice.
Frequently Asked Questions
What is a business credit card? A business credit card is a credit card designed for business expenses, offering rewards, expense tracking, and credit building specifically tailored to business needs.
Why should I get a business credit card? Business credit cards help separate business and personal expenses, build business credit, provide access to funding, and offer rewards and benefits.
What credit score do I need to get a business credit card? Generally, a good to excellent personal credit score (670+) is needed to qualify for most business credit cards, though some cards cater to fair credit scores.
Can I get a business credit card as a sole proprietor? Yes, sole proprietors can apply for business credit cards using their Social Security number and business name.
What is an EIN, and do I need one to apply? An EIN (Employer Identification Number) is a tax ID number for businesses. While not always required, it's recommended for corporations and LLCs and can improve your approval chances.
What is a personal guarantee? A personal guarantee means you're personally liable for the business credit card debt if the business can't repay it.
How do I choose the right business credit card? Consider your business spending habits, rewards preferences, annual fee tolerance, and any specific needs like low APR or travel benefits.
What are the benefits of having employee cards? Employee cards allow you to track employee spending, set individual spending limits, and earn rewards on all their purchases.
How can a business credit card help build my business credit? Responsible use of a business credit card, including making on-time payments, helps establish a positive credit history for your business.
What should I do if my application is denied? Review the reasons for denial, improve your credit score, and consider applying for a card designed for fair credit or secured cards.
Conclusion
Choosing the right credit card for your new business is a critical decision. By carefully evaluating your spending habits, rewards preferences, and financial needs, you can select a card that not only provides access to funding but also helps you build credit and streamline your business operations. Consider all available options and select the card that best aligns with your specific business goals for long-term success.