Several companies offer excellent business credit cards and because every business has different needs, no one credit card is going to be heads and tales above the rest. However, some credit cards offer excellent benefits that you will want to consider above other types of credit cards.
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You will want to consider a rewards card above all else. This is because the purchases that you make for your business are tax deductible, in most cases, but in addition to that, you can earn cash back or other rewards by using a rewards credit card to make your purchases.
How do I select the best rewards credit card for my business?
The first thing that you are going to want to look at is the type of spending your business does. You need to look at where you are spending the bulk of your money.
For some businesses, travel is going to be something in which they spend a lot of money. For other businesses, it might be connection costs such as Internet and telephone fees.
What many people do not realize is that there is virtually a card for any type of spending that you do. When you determine what you spend the most money on, then you can look at rewards credit cards that fit your spending.
What is the best card if I spend most of my money on Internet and telephone?
One of the best cards for businesses that spend a lot on Internet and telephone fees is the Chase Ink credit card. This business credit card pays 5% cash back for all of your expenditures on these two items. In addition, you will earn 5% cash back on office supplies.
What’s more, Chase Ink also rewards you for your other spending as well, so you aren’t limited to spending for your communication, you can use a Chase Ink card for all of your spending and still earn cash back.
There is no annual fee for this card and you will receive a 15,000-point bonus when you make your first purchases using this card. This equates to $150 cash back. You can also get unlimited credit cards for your employees and define the credit limit for each of those cards.
The APR for Chase Ink starts at 13.9% but doesn’t exceed 19.24% unless the Prime Rate changes. This credit card is not for a business with bad credit.
What is the best card if I spend most of my money on travel?
The Capital One Venture Business credit card or, for new customers, it is now called the Spark Miles for Business, is one of many excellent travel rewards credit cards. The nice thing about this credit card is that you earn two flight miles for every $1 you spend. Many travel credit cards only allow you to earn extra miles when you spend money on flying.
Capital One actually offers a comparison chart to show how earning two miles for every purchase actually outperforms other credit cards that award more miles for travel purchases but only one mile per $1 spent on everything else.
When you make your first purchase with this card, which incidentally has no annual fee, you will receive 15,000 bonus miles. There is no cap on how many miles you can earn and there are never any blackout dates on when you can fly using your miles.
The interest rate for this card is 13.4%. As with the Chase Ink card, you can get as many cards as you need for your employees at no extra charge and set their spending limits as well. This is not a bad credit credit card, so if your business is struggling, then you will be unable to qualify for this business credit card.
How do I know what my credit score is for my business?
Credit for your business is different from the credit that you get for your personal line of credit according to SBA.Gov of the US Small Business Administration. Not only is how you build business credit different, but where you find out about your business credit score is different as well.
You can get your business credit score from the following places:
Your credit score will be based on a 0 to 100 scale rather than the traditional credit scale. Your credit score is based initially on your relationship with the vendors that you use, making it important to use vendors that report your good standing to these reporting agencies.
Once you have established some credit, you can then apply for a business credit card that is not directly tied to your personal social security number!
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