Best for fair credit: card_name
Capital One Spark Classic for Business
Credit score needed
Average, Fair, Limited
Why we chose it: The Capital One Spark Classic for Business is for business owners with fair credit who need a leg up when it comes to building their credit. You can be approved even if you have only a “fair” credit score, which means a FICO score from 580 to 669.
Card details:
- Cardholders earn 1% cash back on all purchases.
- Also earn 5% cash back on hotels and rental cars booked through Capital One Travel.
- There’s $0 annual fee.
Pros:
- Easier to get approval when you have imperfect personal credit.
- Free employee cards.
- $0 annual fee.
- No foreign transaction fees.
Cons:
- Very high APR if you carry a balance.
- No welcome bonus.
Best for flights: card_name
CitiBusiness® / AAdvantage® Platinum Select® Mastercard®
Credit score needed
credit_score_needed
Why we chose it: The card_name is the best business credit card for flights due to its high bonus offer and frequent flyer perks, with no annual fee the first year.
Card details:
- bonus_miles_full.
- Cardmembers also earn 2x miles on American Airlines purchases, cable and satellite purchases, gas purchases, select telecommunication merchants, and car rentals, plus 1x points on other purchases.
- A annual_fees.
Best for gas: card_name
Costco Anywhere Visa® Card by Citi
Credit score needed
credit_score_needed
Why we chose it: The card_name comes with 4% cash back on up to $7,000 in eligible gas and EV charging purchases worldwide each year (then 1% back), 3% back on restaurant and eligible travel purchases, 2% back on purchases at Costco and Costco.com, and 1% back on other purchases.
Card details:
- This card is only for Costco members and has no annual fee with a paid Costco membership.
- Bonus rewards on gas apply at all gas and EV charging stations worldwide, not just at Costco.
- annual_fees
Best Small Business Credit Cards Comparison
| Credit Card | Best For | Rewards | Annual Fee | Welcome Offer | APR (Variable) | Key Benefits |
|---|---|---|---|---|---|---|
| Chase Ink Business Cash | Cash back on business expenses | 5% on the first $25,000 spent on combined purchases at office supply stores and internet, cable, and phone services; 2% on the first $25,000 spent at gas stations and restaurants; 1% on other purchases | $0 | $750 cash back (after spending $7,500 in the first 3 months) | 18.24% – 24.24% | Free employee cards, purchase protection, extended warranty, no foreign transaction fee |
| American Express Blue Business Cash | Flexible cash back rewards | 2% on the first $50,000 spent on purchases each year (then 1%) | $0 | $250 cash back (after spending $3,000 in the first 3 months) | 17.99% – 25.99% | Free employee cards, no foreign transaction fees, purchase protection, travel benefits |
| Capital One Spark Cash for Business | Cash back with a flat-rate rewards structure | 2% on every purchase | $95 (waived first year) | $500 cash bonus (after spending $4,500 in the first 3 months) | 22.99% | Free employee cards, unlimited cash back, purchase protection, travel accident insurance |
| Chase Ink Business Preferred | Travel rewards with a high earning rate | 3 points on the first $150,000 spent on travel, advertising, internet, cable, and phone services; 1 point on other purchases | $95 | 100,000 points (after spending $15,000 in the first 3 months) | 18.24% – 23.24% | Free employee cards, cell phone protection, travel insurance, purchase protection |
| American Express Business Gold Card | Travel rewards with bonus categories | 4 points on the 2 select categories where your business spends the most each month (from 6 categories); 1 point on other purchases | $295 | 70,000 points (after spending $10,000 in the first 3 months) | 19.99% – 25.99% | Free employee cards, travel benefits, purchase protection, extended warranty, and business tools |
| Wells Fargo Business Elite Card | Premium rewards for business owners | 2 points on purchases over $5,000; 1.5 points on other purchases | $175 | 50,000 points (after spending $5,000 in the first 3 months) | 15.99% – 23.99% | Free employee cards, purchase protection, extended warranty, fraud protection |
Our Methodology
To determine the best small-business credit cards, we focused on the following factors:
- Rewards Rates: Prioritized cards with strong cash-back or travel reward programs.
- Ongoing Benefits: Looked for cards offering additional perks such as free employee cards, purchase protection, and travel rewards.
- Regular Fees: We considered cards with a reasonable annual fee relative to the rewards and benefits they offer.
- Intro APR Offers: We factored in introductory APR offers to help business owners manage cash flow during the early stages.
- Travel and Consumer Protections: Cards with travel insurance, purchase protection, and extended warranties were given extra weight.
- Employee Cards: Only included cards that offer employee cards for free or at a low cost.
What Defines a Small Business Credit Card?
Small business credit cards are designed specifically for business owners, whether self-employed or running a small company with employees. These cards help separate business and personal expenses, making accounting easier and more transparent.
- Sole Proprietors and Self-Employed: Some cards allow applications with a Social Security Number (SSN), while others require an Employer Identification Number (EIN).
- Employee Cards: Many small business credit cards offer free employee cards, helping businesses track purchases across the company.
- Personal Guarantee: Small business credit cards require a personal guarantee, meaning the business owner is personally liable for the balance, even if the business fails.
Why Should Small-Business Owners Get a Business Credit Card?
There are several advantages to using a business credit card:
- Separate Personal and Business Spending: This helps in easier tracking and managing of business expenses.
- Simplify Tax Filing: Keeping personal and business spending separate reduces the chances of errors when filing taxes.
- Earn Rewards: Many cards offer cash back, points, or miles that can be redeemed for business or personal use.
- Cash Flow Management: A business credit card allows you to make purchases and pay the bill monthly, rather than upfront, helping manage cash flow.
- Employee Cards: Get cards for your employees to manage their spending and earn rewards on their purchases as well.
How to Pick the Best Small-Business Credit Card for You
Consider the following factors when selecting a small-business credit card:
- Annual Fees: Some cards have no annual fee, while others charge fees but offer superior rewards and perks.
- Rewards Rates: Look for cards that offer high rewards in categories your business frequently spends in, or those with generous flat-rate rewards.
- Cardholder Perks: Pay attention to benefits like travel perks, purchase protection, and free employee cards.
- Redemption Flexibility: Ensure you can redeem your rewards in ways that benefit your business (e.g., travel, statement credit, gift cards).
- Introductory Offers: Consider sign-up bonuses, but make sure you can meet the spending threshold without straining your finances.
Frequently Asked Questions (FAQs)
- What are the different types of business credit cards? Business credit cards come in various types, including:
- Cash-back cards
- Travel rewards cards
- 0% APR balance transfer cards
- Cards for businesses with bad credit
- Mastercard, Visa, and American Express options
- What do I need to apply for a business credit card? Typically, a personal guarantee is required, meaning your personal credit will be considered for approval. You may apply with your SSN if you’re a sole proprietor or use an EIN for a registered business.
- How long does it take to be approved for a business credit card? Approval can take anywhere from a few minutes to several weeks, depending on the issuer and your business’s financial history.
- Can I use a business credit card for personal purchases? While technically allowed, it’s advisable to use your business credit card for business-related expenses to maintain clear separation between personal and business finances. This helps with accounting and tax filing.
