Feb 6, 2017
Top 5 Business Credit Cards
One of the best ways that you can pay for your business expenses is with a business credit card. The reason being that business credit cards earn either reward points, frequent flyer miles or cash back on every purchase.
Why not get something back on money you’re going to spend anyways? If you don’t have the money to finance your business, a business credit card is also a solid financing option, especially a card with a 0% introductory APR.
When you shop around for cards, the sheer number of options can be overwhelming. We’ve made it easier to find a credit card that fits your needs by selecting the top five options on the market right now.
1. Spark Cash for Business from Capitol One
• 2% unlimited cash back on every purchase
• $500 cash bonus for spending $4,500 in the first 3 months
• 17.49% variable APR
• $59 annual fee that’s waived for your first year
Best for: Businesses with high spending in different categories that prefer cash back
Cash back is the simpler reward option when it comes to business credit cards, as you don’t have to figure out how you want to redeem anything. Of the cash back business credit cards, the Spark Cash card provides the highest all-around reward rate at 2%. The $500 cash back bonus is fairly high in terms of sign-up bonuses, and the annual fee is reasonable.
There are cards with higher returns in specific spending categories, but they also have spending caps on those higher returns. If your business is spending $15,000 or more per month or if your business expenses come in a wide range of categories, then this card is a smart choice.
2. Chase Ink Business Preferred Credit Card
• 3 points per $1 spent on travel, shipping purchases, cable and phone services, Internet, and certain advertising purchases, up to a limit of $150,000 per account anniversary year
• All other spending earns 1 point per $1 spent
• 80,000 bonus points for spending $5,000 in the first 3 months
• 25%-point redemption bonus when use airfare, hotels, cruises and car rentals through the Chase Ultimate Rewards portal
• 16.49% to 21.49% variable APR
• $95 annual fee
Best for: Businesses that spend up to $150,000 in the categories listed above and that use travel rewards
While you can redeem points for a variety of different reward options, including cash back, you tend to get the most out of them when you put them towards travel rewards. That’s where the Chase Ink Business Preferred card shines, as it not only has a great reward rate for travel purchases, but it has extensive travel reward options.
Redeeming your points through the Chase Ultimate Rewards portal will get you that 25% bonus, and the Chase Ultimate Rewards program itself also has many airline and hotel transfer partners where you can use your points.
The 80,000-point sign up bonus is among the largest bonus offers available. The only downside with this card is the annual fee and the APR. The fee is well worth it if you’re able to maximize this card’s rewards, and the APR is only a problem if you carry a balance from month to month.
3. American Express Business Gold Rewards Card
• 3 points per $1 spent on one spending category of your choice from a list of five and 2 points per $1 spent on the other four categories up to a $100,000 limit in each category, 1 point per $1 spent on all other purchases
• 50,000 bonus points for spending $5,000 in the first 3 months
• $175 annual fee, waived for the first year
• Charge card, entire balance is due on payment due date
Best for: Businesses with high spending in different categories that prefer rewards
The American Express Business Gold card offers high rewards and high spending caps, making it a great card for racking up points as long as you can pay your balance in full every month. While American Express does offer an option to pay overtime with interest, it’s better to use this card as a charge card.
If you need financing for your business and don’t have the money to pay what you charge by the due date, it’s better to go with a credit card that has a 0% introductory APR.
Being able to choose a spending category to earn extra points is very helpful, and the American Express Rewards program has several transfer partners. American Express is also renowned for its customer service, so you can expect the company to treat you well every time you contact them.
4. Chase Ink Business Cash Card
• 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 year, 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year, 1% cash back on all other purchases
• $300 cash bonus for spending $3,000 in the first 3 months
• 0% introductory APR for 12 months, then 13.74% to 19.74% variable APR
• No annual fee
Best for: Businesses with up to $25,000 annual spending in bonus categories listed above, businesses that need financing for 12 months or less
The Chase Ink Business Cash card has the highest cash back rate available with its 5% categories, making it the superior choice over the Spark Cash card from Capitol One if your business only spends moderately, especially since it doesn’t have an annual fee.
The 12-month introductory period with 0% APR also makes this card perfect for businesses in need of financing to launch or expand.
5. Starwood Preferred Guest Card from American Express
• Up to 5 Starpoints per $1 spent at participating SPG hotels, 2 Starpoints per dollar spent at participating Marriott Rewards hotels, 1 Starpoint per dollar spent on all other purchases
• 25,000 bonus points for spending $5,000 in the first 3 months
• 15.74%, 17.74% or 19.74% variable APR
• $95 annual fee, waived for the first year
Best for: Businesses that have high hotel spending, businesses that have high spending in general and need a versatile rewards program
At first glance, the Starwood Preferred Guest Card may not seem as attractive as other options, unless your business spends quite a bit at hotels. However, it makes this list for two reason: no spending caps on its bonuses and the value of Starpoints.
If your business spends quite a bit at SPG and Marriott Rewards hotels, you’ll earn points quickly using this card, without hitting any limits. Starpoints are also considered one of the best reward points available, because the SPG rewards program has so many transfer partners. You even get a 5,000-mile bonus for every 20,000 Starpoints you transfer to certain frequent flyer programs.
To maximize your rewards, you need to pick a business credit card that fits your business’s needs and spending habits. Take a look at your monthly expenses and consider what reward redemption options you can use to make the right choice.