A business credit card is an asset if you own your own business. It can help you pay for important purchases, travel expenditures, and allow you to have organized records for day to day activities and for income tax purposes.
Business credit cards are issued by most all banks and come with a wide variety of perks and advantages. It is worth your while to do some research into the various differences in the many offers out there. It is preferable to do business with the same bank you use for your business bank account, but if another company has something better, you should consider it.
Small business credit cards usually offer big value. With more generous sign-up bonuses and reward rates than consumer cards, these offers can help you establish business credit, improve cash flow and grow your business.
Depending on your credit rating or the condition of an already established business, obtaining a card should be quick and easy. Of course, your credit report and credit rating may be looked at if you are a sole proprietorship, or independent contractor, but as long as your credit score if reasonable and you do not have any bad notes on your report, you should be approved.
If you are CEO of your own corporation and employ people and your income statements show promise, you should be able to get the corporate credit card you want and need for you and possibly some employees (if needed).
Be aware that if you apply using your social security number, this will result in an inquiry on your personal credit report that tends to reduce it in the short term by 2-5 points per inquiry, just like applying for a personal card. On the positive side, once your business credit line is open, its activity shows up on your business credit report and should remain separate from your personal report.
So if you run balances (like many businesses do periodically ) or make large purchases, your personal credit score should be unaffected. However, if you default on a business card, expect the issuer to pursue you personally, since these cards are guaranteed by your personal credit.
You can generally get a personal and business card on the same day from a given credit card issuer and have it count as a single hard inquiry on your credit; this strategy can help you minimize the overall impact that card applications have on your credit score. Most issuers will also let you link your personal and business credit cards together so you don’t have to manage multiple accounts, while your points accrue into one central account.
1. Chase Ink Cash® Business Credit Card
The Chase Ink Cash business credit card might be the best corporate card out there. Lots of perks and bonuses. Here are just some of them.
-Earn $300 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening
-Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year
-Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
-Earn 1% cash back on all other card purchases with no limit to the amount you can earn
-0% introductory APR for 12 months on purchases and balance transfers
-Employee cards at no additional cost
-No Annual Fee
-no foreign transaction fees
-You’ll get a 0% on Purchases and Balance Transfers for 12 months, and then the ongoing APR of 13.49% – 19.49% Variable APR.
A sold choice for any business owner.
2. American Express SimplyCash® Plus Business Credit Card
SimplyCash® Plus Business Credit Card from American Express is another option for a no annual fee business credit card. Like Ink Cash® Business Credit Card, this card has 5% cash back at U.S. office supply stores and on wireless phone services purchased directly from US service providers. Kind of interesting is that AMEX lets you pick one additional category to earn 3% back in.
Here are your choices to earn 3% on:
-Airfare purchased directly from airlines
-Hotel rooms purchased directly from hotels
-Car rentals purchased from select car rental companies
-U.S gas stations
-U.S. purchases for advertising in select media
-U.S. purchases for shipping
-U.S. computer hardware, software, and cloud computing purchases made directly from select providers.
More Features :
-For a limited time, earn even more cash back: Earn up to $500 cash back as statement credits.
-Earn a $250 statement credit after you spend $5,000 in qualifying purchases on your Card within the first 6 months of Card Membership.
-Plus, earn an additional $250 statement credit after you spend an additional $10,000 or more in qualifying purchases on your Card within the first year of Card Membership. Offer Expires 01/25/2017.
-No Annual Fee.
-5% cash back on wireless telephone services purchased directly from U.S. service providers and U.S. office supply stores.
-3% on the category of your choice from a list of eight and 1% cash back on other purchases.
-5% and 3% apply to the first $50,000 in purchases per calendar year, then 1% thereafter. Cash back received is automatically credited to your statement.
Of course, be sure to read the fine print for any card to see what the terms and limitations are.
3. Bank of America® Cash Rewards for Business MasterCard®
The Bank of America® Cash Rewards card offers an excellent opportunity for business owners who want to earn a $200 statement credit bonus and ongoing rewards without paying an annual fee.
With the Bank of America® Cash Rewards for Business MasterCard® credit card, you can earn rewards quite fast. Here’s how the earnings schedule breaks down:
-Earn 3% cash back at gas stations and office supply stores up to $250,000 annually; 1% earn rate after that
-Earn 2% at restaurants
-Earn 1% cash back on all other purchases
-Earn a $200 statement credit after $500 in purchases within 60 days of account opening
-When it comes time to redeem your rewards, you can opt to redeem them for a statement credit or a deposit into your Bank of America® checking or savings account.
Basically, this card is best for someone who spends a lot at gas stations and at office supply stores for their business each year, and who mostly want to earn cash rewards.