A business credit card has advantages for individuals working beyond a 9-to-5 job. Whether you have your own business, a stake in one, or a side gig, separating business and personal expenses is a wise financial move.
The benefits of the best business credit cards go beyond simplifying accounting. They often include rewards such as cash back or travel points, as well as money-saving perks like low introductory APRs on purchases and balance transfers. Some cards even offer travel insurance and purchase protection. Businesses can optimize their spending by taking full advantage of credit card benefits. To compile our list of the top choices, we evaluated a wide range of credit cards from various issuers in this category.
Ink Business Cash® Credit Card
Almost every business allocates part of their budget to internet, phone, cable, and office supplies expenses. The Ink Business Cash® Credit Card caters to these spending categories and offers above-average rewards in two other common areas. It has no annual fee and no extra charges for employee cards. Moreover, it provides various protections that can boost any business’s financial performance. Considering all these advantages, it’s no wonder we chose it as the best business credit card.
The card comes with a $0 annual fee, making it an affordable option for businesses. It offers 5% cash back on the first $25,000 spent on office supply stores, internet, cable, and phone services per account anniversary year. Additionally, it provides 2% cash back on the first $25,000 spent at gas stations and restaurants per account anniversary year. For all other purchases, the card offers 1% cash back.
As a welcome bonus, the Ink Business Cash® Credit Card rewards users with $750 cash back after they spend $6,000 on purchases within the first three months of opening the account. This generous offer can provide a significant boost to businesses right from the start.
Businesses that engage in international transactions should note that the card charges a foreign transaction fee of 3% on each transaction made in U.S. dollars. It’s important to consider this fee when using the card for overseas purchases or conducting business abroad.
American Express® Business Gold Card
The American Express® Business Gold Card (terms apply) is suitable for businesses looking to maximize their varied spending effortlessly. The card automatically earns 4 Membership Rewards points per dollar on the top two eligible categories each month. This earning applies to the first $150,000 in spending per calendar year.
Most businesses spend in at least one or more of the eligible categories, such as airfare purchased directly from airlines or U.S. purchases for advertising in select media. Other eligible categories include U.S. purchases from select technology providers, gas stations, restaurants (including takeout and delivery), and shipping expenses.
The card offers the flexibility of having no preset spending limit. This allows you to have greater spending power when the need arises. You can redeem Membership Rewards points in various ways, with the best value usually obtained through booking travel or transferring points to Amex’s travel loyalty partners.
The annual fee for the American Express Business Gold Card is $295. It provides rewards of 4 Membership Rewards points per $1 on up to $150,000 in combined purchases each calendar year for the top two spending categories. For all other purchases, you earn 1 point per $1 spent. Additionally, there is a welcome bonus of 70,000 Membership Rewards points when you spend $10,000 on purchases within the first three months of card membership. Foreign transaction fees do not apply.
The Blue Business® Plus Credit Card from American Express
The Blue Business® Plus Credit Card from American Express has no annual fee. It offers a simple rewards structure and a low intro APR on purchases. New cardholders enjoy a 0% intro APR for the first 12 months. Afterward, a variable APR of 18.24% to 26.24% applies.
With this card, you also get extended warranty¹ and purchase protections¹ for your items. It provides additional value for business owners who prefer a straightforward credit card approach.
There is no annual fee associated with the Blue Business® Plus Credit Card. You can earn 2 Membership Rewards points per $1 on everyday business purchases up to the first $50,000 spent per year. After that, you earn 1 point per $1 on all other purchases. There is no welcome bonus offered with this card. When making foreign transactions, a fee of 2.7% is charged on each transaction after conversion to US dollars.
Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit cardÂ
The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card provides more control over your business rewards. You can choose a cash-back category each month from six options for higher earning rates. Change the category monthly or stick with the same one until your expenses change. The eligible categories include gas stations, office supply stores, travel, TV/telecom & wireless, computer services, or business consulting services. You can find value in at least one or more of these spending areas.
Bank of America’s Preferred Rewards program offers up to 75% more cash back on every purchase. There is no annual fee for this card. Earn 3% cash back in the category of your choice, 2% cash back on dining, and 1% cash back on all other purchases. You can earn 3% and 2% cash back on the first $50,000 in combined choice category/dining purchases each calendar year, and then 1%. Get a welcome bonus of $300 statement credit by spending $3,000 on purchases in the first 90 days of account opening. Foreign transaction fees amount to 3% of the U.S. dollar value for each transaction.
Amazon Prime Business American Express Card
Business owners with an Amazon Prime Business membership can greatly benefit from owning the Amazon Prime Business American Express Card (terms apply). The card offers a generous rewards structure for eligible purchases made with Amazon. What sets it apart is the option to choose 90-day financing terms for certain purchases instead of earning rewards. This feature can be particularly helpful for businesses with fluctuating monthly revenue.
The card has no annual fee and provides 5% back in rewards on the first $120,000 spent each calendar year. With an eligible Prime membership, cardholders can also enjoy 90 Days Terms on eligible U.S. purchases at Amazon Business, AWS, Amazon.com, and Whole Foods Market. Additionally, they earn 2% cashback at U.S. restaurants, U.S. gas stations, and on wireless telephone services purchased directly from U.S. service providers. For all other purchases, cardholders earn 1% cashback.
Upon approval, new cardholders receive a welcome bonus of a $125 Amazon.com gift card. Furthermore, the card does not charge any foreign transaction fees, making it convenient for international purchases.
Wyndham Rewards Earner® Business Card
The Wyndham Rewards Earner® Business Card is designed for frequent travelers who need accommodation. It offers exceptional rewards on gas spending and stays at Wyndham brand hotels. Additionally, it provides solid rewards for various business expenses, benefiting your bottom line. The card also includes automatic Diamond status, granting hotel perks, suite upgrades, and a welcome amenity at check-in. You’ll also enjoy a status match with Caesar’s Rewards and car rental upgrades with Avis and Budget.
With an annual fee of $95, the card offers enticing rewards. You’ll earn 8 points per $1 spent on Hotels By Wyndham and gas purchases, 5 points per $1 on marketing, advertising, and utilities, and 1 point per $1 on all other purchases.
As a welcome bonus, you can earn 50,000 points after spending $3,000 on purchases within the first 90 days. Additionally, you’ll receive 25,000 points after spending $10,000 in the first 12 months, enough for up to 10 free nights. The card has no foreign transaction fees, meaning you won’t incur any additional charges when making transactions in U.S. dollars.
Should you apply for a business credit card?
Businesses, regardless of their size or type, can benefit from applying for a business credit card. This includes sole proprietors and freelancers. The card helps separate personal and professional expenses, offers purchase protections and insurance, and provides opportunities to earn rewards.
According to Leslie H. Tayne, Esq., founder and managing director of the Tayne Law Group, P.C., it’s essential to consider your business needs when selecting a business credit card. Take into account your projected business spending and compare different card options, especially if your business heavily relies on credit cards for bill payments.
A business credit card with a low introductory APR can be valuable for financing significant purchases or paying off existing debts faster. These cards also streamline employee spending management by facilitating easy tracking and monitoring of purchases.
Guide to business credit cards
Business credit cards offer numerous benefits to business owners. They facilitate cash flow management, provide rewards, and simplify expense tracking. These cards cater to business needs by offering higher spending limits and exclusive rewards programs. However, obtaining such cards often requires a good personal credit score and additional documentation, such as tax returns or financial statements.
Small business credit cards typically require a personal guarantee, which means the cardholder becomes liable for outstanding debt if the business defaults. When selecting a business credit card, it is crucial to consider your company’s spending habits and goals. Look for cards that offer rewards or cash back on the types of purchases you make frequently.
Apart from rewards, pay attention to other factors such as the interest rate, annual fee, balance transfer fees, foreign transaction fees, and any other associated charges. Once you have chosen the most suitable card, it’s essential to use it responsibly. Ensure timely bill payments to avoid late fees and higher interest rates. Adhere to spending limits set by the issuer to prevent exceeding them. Regularly track your expenses to stay on top of budgeting goals and maximize rewards program benefits.
Evaluating reward potential
We assess the reward potential of business credit cards based on average spending by sole proprietors or single-member LLCs. Our data comes from government and public sources. A typical business owner might earn around $84,352 per year, with $25,087 spent on a credit card.
Let’s examine the reward potential of the Amex Blue Business Plus, a top business credit card. If a cardholder spends $25,087, they can earn 2 points per dollar on eligible business purchases up to $50,000 per year. After reaching that limit, they earn 1 point per dollar on other eligible purchases. In total, they could accumulate 50,174 Amex Membership Rewards points.
