If you're just getting a business off the ground, you have lots of decisions to make. Should you do your own accounting or hire a professional? What's the best way to reach your customers (and customers-to-be): print advertising or digital? Not to add to your plate, but you should also think about getting a credit card for your business.
Doing so can help you keep your business expenses separate from personal ones, and it can also help you earn rewards on your spending that could translate to cash back or lower-cost travel down the line. Here's what to consider when you're looking for a business credit card.
1. Intro APR
Some of the best business credit cards come with an intro 0% APR period, which might last six months, a year, or longer. This is a perk worth looking for because it gives you the ability to finance a large purchase without incurring any interest charges -- provided you can pay off your purchases in the time allotted.
If you don't finish paying them off before that intro APR period ends, you'll be charged interest. The Federal Reserve Bank of St. Louis found that as of February 2024, the average interest rate on credit card accounts being charged interest was 22.63%. Much of the time, credit card interest compounds daily, too -- so letting a balance linger could have you signing on for debt that can balloon over time.
Business Credit Card Comparison
Consider these business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.
Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.
| Offer | Our Rating | Welcome Offer | Rewards Program | APR |
|---|---|---|---|---|
Ink Business Unlimited® Credit Card Apply Now for Ink Business Unlimited® Credit Card OnChase'sSecure Website. | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Earn $750 bonus cash backEarn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. | Earn unlimited 1.5% cash back on every purchaseEarn unlimited 1.5% cash back on every purchase made for your business | Intro:0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular:18.49% - 24.49% Variable |
Ink Business Preferred® Credit Card Apply Now for Ink Business Preferred® Credit Card OnChase'sSecure Website. | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Earn 100,000 bonus pointsEarn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. | Earn 3 points per $1 in select business categoriesEarn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn. | Intro:N/A Purchases: N/A Balance Transfers: N/A Regular:21.24%-26.24% Variable |
The best way to use an intro 0% APR period on a credit card is to do your own math for the amount you'll need to pay per month. Let's say you purchase $10,000 worth of equipment for your business, and your card has 12 months of 0% APR. Divide $10,000 by 12, and you'll find out you need to pay at least $833.33 per month to get clear of your debt before interest charges hit.
2. Annual fee
Some credit cards charge annual fees, but in return, you'll often gain access to better perks and benefits than you would with a no annual fee card. This could include travel insurance, spending credits, or maybe a higher bonus rewards rate on certain purchases (perhaps 3x points per $1 as opposed to 2x points per $1). That said, if money is tight and you're just getting your business off the ground, you may want to avoid fees. Thankfully, there are great options in both categories. Some of the best business credit cards also offer free cards for your employees.
3. Rewards program
Finally, when you're on the hunt for a new card for your small business, it's worth digging into the nitty-gritty details of rewards programs. I recommend starting by going through your recent purchase history to see where you're spending the most money on business expenses. Then see if there are any credit card options that offer bonus rewards or cash back on those purchases.
For example, shipping, internet service, and social media marketing might all be big expenses for an e-commerce business. The Ink Business Preferred® Credit Card earns 3 points per $1 on the first $150,000 of annual spending on:
- Travel
- Shipping
- Internet, cable, and phone service
- Advertising purchases made through social media and search engines
It stands to reason that if you have an online shop, this card might be a fit for your needs. And it earns Chase Ultimate Rewards points, which are one of the most valuable credit card points on our radar. They are easily turned into free or lower-cost travel -- what a win!
Whatever your business, you can likely find a card that works with your spending -- and to keep things simple, you might prefer a flat-rate rewards card that earns a set rate on all purchases. Those exist, too! Before you apply for a card, compare your card options.
Small business owners like you have a lot to think about -- thankfully, there are plenty of credit card options to help your company succeed. Review The Ascent's list of the best business credit cards to find a winner.
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