Getting a business credit card for your startup could be the difference between success and failure in the long run. When you’re just starting out—with little to no business credit history and no business experience under your belt—it’s pretty hard to qualify for a small business loan. So in the early stages, it makes a lot of sense to get the ball rolling with a business credit card that can help cover your expenses and finance your growth.
With that in mind, which business credit cards for new businesses are the best options on the market? Read on to learn about our top 3 picks.
Business Credit Cards for New Businesses: What You Need to Know
Here’s the first thing you should know about business credit cards for new businesses: There aren’t really business credit cards specifically designated for startup owners. But there are business credit cards for new businesses that are easier (and harder) to qualify for if you’re a startup owner with no business history.
A startup business probably has no business credit history at all. So the creditworthiness of the business really falls on the creditworthiness of the owner—that’s you. When it comes down to it, your ability to secure a business credit card without years of business records and history of stable financials depends on your personal credit score. And with a stellar personal credit score, you can qualify for the same business credit cards that an experienced business owner will qualify for.
And on the other hand, if you have poor personal credit history and you’re just starting a business, you’ll want to look for business credit cards that have more relaxed qualification standards.
The good news is that there are a bunch of different options for startup owners with varying personal credit scores and no business history to show.
The 3 Best Business Credit Cards for New Businesses
Don’t have any business history? No problem.
Finding the best business credit card for your startup first comes down to what you qualify for based on your personal credit rating.
If you have an excellent credit score—with a shiny three-digit number between 720 and 850—here’s one of the best business credit cards for new businesses.
1. The Best Business Credit Card for Startup Owners With Excellent Credit
The SimplyCash Plus Business Credit Card from American Express
One of the best business credit cards for new businesses is American Express’s SimplyCash Plus. Startup owners who have the personal credit score to qualify for this business credit card should keep this card at the top of their list.
Here’s why it’s great for new businesses:
Maximize Your Cash Back Rewards
The SimplyCash Plus Business Credit Card comes with a pretty stellar cash rewards program.
With the SimplyCash Plus, you’ll get:
- 5% cash back on wireless telephone providers in the U.S. and office supply stores in the U.S. up to $50,000 of spending. After you spend $50,000 per year in these categories, you’ll earn a baseline 1% cash back on purchases.
- 3% cash back on the category of your choice (up to $50,000):
- Hotel stays
- Purchases at car rental companies
- Purchases at gas stations in the U.S.
- Purchases at restaurants in the U.S.
- Shipping purchases in the U.S.
- Advertising purchases in the U.S.
- Computer hardware, software, and cloud computing purchases in the U.S.
- 1% cash back on everything else
Not only is the cash rewards earning on the SimplyCash Plus one of the best on the market, it’s especially great for startup owners. With the SimplyCash Plus, you can tailor your rewards to what you spend on most. As a startup business owner, you could easily be spending a lot on any of those 10 categories—especially office supplies, airfare, tech supplies, or gas purchases.
Only you will know what you need to spend the most on to get your business off the ground, so American Express allows you to make the choice on your own. Plus, you’re likely to spend on different categories as your business grows from its startup phase. So when you need to make the switch on your rewards category, you can with the SimplyCash Plus.
And finally, the SimplyCash Plus’ rewards program is, well, simple. Your cash back will be automatically credited to your account—no need to jump through hoops to redeem your earnings. The simplicity of the rewards program makes this business credit card a particularly great option for busy startup owners who don’t have time to crunch the numbers to get their cash back.
0% Introductory APR and No Annual Fee
Another reason why the SimplyCash Plus is one of the best business credit cards for new businesses? There’s no annual fee and a 0% introductory APR for 9 months.
As an entrepreneur just starting your business, every opportunity for you to save money for your startup is a good one. If you choose to use the SimplyCash Plus, you won’t have to worry about dishing out your significant cash rewards back to an annual fee.
On top of that, you’ll have a 0% APR for 9 months. That means you can borrow money to grow your startup without paying any extra in interest on what you borrow. In a lot of ways, a 0% APR is like a free loan… What could be better for a startup looking to save money for their business?
More Buying Power
When you’re just starting your business, you might not know how much you’ll need to spend to get the ball rolling. Maybe you’ll only need to cover a few expenses here and there. But if you have big expansion plans for your startup, you’ll probably need to spend a lot to get there.
Now, business credit cards come with a preset spending limit that you can’t go above. Business charge cards, on the other hand, don’t come with a cap on your spending. The SimplyCash Plus is a business credit card, but when it comes to spending power, it works a lot like a business charge card.
With the SimplyCash Plus, you can spend above your credit limit—and get cash back on those purchases—without having to pay extra or even let American Express know you’re doing it. Whatever you spend over your credit limit you’ll have to pay off in full each month as a part of your minimum payment due (much like how business charge cards work).
The ability to spend over your credit limit without being punished for it makes the SimplyCash Plus one of the best business credit cards for new businesses. You don’t necessarily know how much you’ll have to spend on your startup, but the SimplyCash Plus gives you the flexibility to make those big purchases if need be.
2. The Best Business Credit Card for Startup Owners With Good Credit
Maybe you don’t have the best personal credit score, but it’s still good—somewhere between 690 and 720, let’s say.
Don’t worry, you’ll still be able to qualify for some great business credit cards without any business history to show.
Here’s one of the best business credit cards for new businesses:
The Blue for Business Card from American Express
The Blue for Business Card is a great option for any small business owner with good personal credit.
But there are a few reasons why it’s an especially good business credit card for new businesses.
Bring in Bonus Points
The Blue for Business Card works on a Membership Rewards points system. You can redeem your Membership Rewards points and spend them on travel purchases, merchandise, gift cards, entertainment, or just general purchases for your business.
Here’s what to expect:
- Get 1 Membership Reward point for every dollar spent on eligible purchases.
- Earn a 30% Membership Rewards points bonus every year.
The one point per dollar rewards rate might seem a little small—at least compared to other rewards cards. But the generalized rewards earnings could fit the needs of a startup business owner well. If you’re just starting out, you might not know what you’ll spend the most on for your company. After all, it’s hard to predict the exact path of your small business. So instead of committing to a card that only gives you rewards on categories you might not even spend that much on down the line, you can keep things general with the Blue for Business Card while you start up.
And as a cherry on top, American Express will pay out a 30% bonus on your past year’s purchases on the card.
0% Introductory APR and No Annual Fee
Just as you would with the SimplyCash Plus, you’ll have a 0% introductory APR for 15 months and no annual fee with the Blue for Business Card. So if you’re an entrepreneur looking to hold on to as much cash as possible, the Blue for Business Card is a smart choice.
Sizable Sign-up Bonus
There are a lot of great business credit card offers available, and the Blue for Business Card has one of the best—especially for startup owners.
You’ll get 10,000 Membership Rewards points once you make your first purchase on the card (within 3 months of card membership). Plus, you’ll get another 15,000 Membership Rewards points when you spend $5,000 in the first 6 months of cardmembership.
Most business credit card offers come with a sizable bonus, but only after you spend a lot of money in the first months of having the card. But if you’re just starting out, you might not want to dish out $5,000 or so in 3 months just to get your welcome bonus.
With the Blue for Business Card, you can get those 10,000 Membership Rewards points with just one purchase. Startup owners who don’t plan on spending too much on their card but still want to bring in rewards will definitely benefit from the Blue for Business Card. Plus, those 10,000 Membership Rewards can translate into $100 for your business. Who wouldn’t want a cool $100 back just for making one purchase for your business?
3. The Best Business Credit Card for Startup Owners With Fair Credit
So you don’t have any business history to show for your startup and you don’t have an amazing personal credit score, either.
Don’t panic! If you have only fair credit (between 630 and 670), you still have business credit card options for your startup.
Capital One Spark Classic for Business
If you have a limited credit history or an average credit score, Capital One’s Spark Classic for Business could be a great business credit card for your new business.
The Spark Classic for Business is a cash back business credit card that lets you earn 1% cash back on all your purchases. On top of your cash back earnings, you won’t have to worry about paying an annual fee. When you pair these two features together, you’ll get a good long-term value on the Spark Classic for Business.
When it comes down to it, the Spark Classic for Business is a great option for borrowers who need to build their credit with a no-nonsense card. You’ll get solid cash back, and if you can focus on paying your balance each month, you’ll boost your credit score and save money by avoiding a high ongoing APR.
As a startup business owner, qualifying for business credit cards for new businesses with a less-than-stellar credit rating can be hard. But the Spark Classic for Business is a solid option to get your startup going and build your credit rating to open more doors for your small business down the line.
How to Choose the Best Business Credit Card for Your New Business
There are a lot of business credit cards for new businesses on the market. To find the best business credit card for you, first narrow your options down to what you can qualify for based on your personal credit history.
After that, think carefully about how you’ll spend for your new small business.
What do you need from your business credit card in the near future? And what will your small business need when it’s more established?
Once you get a good grasp on what your spending habits are and will be, you’ll be able to find the best business credit card to match them. Good luck!
The post Attention, Entrepreneurs! Check Out The 3 Best Business Credit Cards for New Businesses appeared first on Fundera Ledger.
from Fundera Ledger https://www.fundera.com/blog/business-credit-cards-for-new-businesses