We’re all familiar with traditional credit cards – the consumer credit cards we have for everyday purchases.
When you talk about small business credit cards, things get more specific. Features vary across credit card companies.
You have to choose which feature or features are best for your business.
For example, is air travel a big part of your operations? Then you’d want a card that gave back points towards air travel.
Do you make the majority of your purchases on Amazon? You’d be hard-pressed to beat the terms of the Amazon Business Prime credit card, which gives you a whopping 5% back on Amazon purchases.
We’ve navigated through the extensive array of options to provide you with a summary of the features and rates of different types of credit cards, assisting you in making your selection.
First, a few definitions.
Types of Credit Cards for Small Businesses
What are business credit cards and what do all the names mean? Here are some of the more popular names and what they mean.
Balance Transfer Credit Cards – The balance transfer credit card doesn’t charge a balance transfer fee for balance transfers (from another card) and often offers 0% interest for at least the first 6 months. You can play the balance transfer cards switch game, but we don’t advise it. It can negatively impact your credit scores.
Cash Back Credit Cards – On average you can get from 1 to 2% cash back, which you can apply against your bill. You only earn the cash back statement credits on money you have paid. You can’t use the cash back money as your monthly payment. Cash back can also be offered as a lump sum once you’ve spent, and paid off, a set amount of money.
Rewards cards- Rewards cards offer points. Points are typically worth one cent towards cash. Or points may accumulate as “credits” you can use against your balance or as a discount towards a purchase (especially airfare).
Store Credit Card – Store cards are for a specific store, such as an office supply store. Or for contractors, a building materials store. Store credit cards are set up to be used as a revolving line of credit.
Secured credit card – If you have bad credit, or a bad credit history, you may look at a secured card, which requires a security deposit.
Unsecured credit card – If you have excellent credit with a solid personal credit history, you can qualify for an unsecured card from a credit card issuer. You’ll typically start with a low spending limit which will rise as you make timely payments, and especially if you pay off the credit card balance.
How to Choose Between the Different Types of Credit Cards: Make the Right Business Decision
We are bombarded by advertising from the credit card industry, but that’s a good thing. A small business owner can save money with the right card due to the steep competition. But you are probably asking why should I get a business credit card and how do I go about it?
How to pick the right one? Here are some tips:
Look for 0% introductory APRs – But be aware that if you are late with a payment, or overspend your credit limit, the regular APR will then apply.
Cash Back or Rewards Program – The majority of cards offer these. If you expect to spend $7,000 t0 $10,000 or more in the first six months, you can find a rewards card that offers a lump sum cash bonus or thousands of rewards points. If you’re not going to spend that much, look for a 1.5 or 2% cash back on all purchases.
Annual fee – If there are annual fees, weigh that amount against other benefits.
Low interest credit cards – Many offer the introductory 0% but jump to about 20%. Know what the actual APR will be and what interest rates will be assessed.
Link to Accounting Programs – Does the credit card company offer a link that easily transfer information to your accounting program?
Your credit report – College students may face significant challenges if they have credit card debt from a student credit card. Is it possible to use a business credit card to pay off student credit card debt? It would be more beneficial to negotiate a payoff amount and secure a personal loan to eliminate the credit card debt. This approach can also be an effective way to build credit.
Types of Capital One Credit Cards
Spark Small Business Credit Cards | Capital One | Apply Now
Spark 2% Cash Plus
Welcome Incentives: $1,000 sign on bonus makes this a favorite for balance transfer. 2% cash back.
Fees: $150 annual.
Credit Limit: Don’t transfer more than you can pay off in a month.
Credit Needed: Excellent.
Spark 1.5% Cash Select with No Annual Fee
Welcome Incentives: 0% APR for 12 months, or a $500 sign up bonus.
Fees: 0
Regular APR: 15,99 to 23.99
Limits: higher credit limits with good credit, low credit limits with poor credit or limited credit history. This is standard with cards.
Credit Needed: Good
Spark 1% Classic
Welcome Incentives: None. 1% cash back. Good way to start to establish credit.
Fees: 0
Regular APR: 15.24 to 26.99.
Limits: Standard
Credit Needed: Poor or limited history.
Club Business Credit Card
Welcome Incentives: 1.5 to 5 points for each dollar spent, rewards at 10,000 points, bonus at 20,000 points
Fees: 0
Regular APR: 15.24 to 26.99
Limits: Standard
Credit Needed: Good
Spark 1.5x Miles Select
Welcome Incentives: 1.5 miles equals $1 cash back.
Fees: 0
Regular APR: 13.99 to 23.99
Limits: Standard
Credit Needed: Good
Types of Chase Credit Cards
Compare Business Credit Cards | Chase
The Chase Ultimate Rewards program offers generous cash back bonuses, making these credit cards popular choices among rewards enthusiasts.
Ink Business Unlimited® credit card
Welcome Incentives: 1.5% cash back and $750 cash back after you spend (and pay off) $7,500 in 3 months. Can be used as statement credit.
Fees: 0
Regular APR: 13.24 to 19.24
Limits: Standard
Credit Needed: Good
Ink Business Cash® credit card
Welcome Incentives: $750 cash back after spending and paying off $7,500 in 3 months. 0% APR for 12 months. 5% cash back on $25,000 combined purchases (office supply, internet, cable, phone) in first year.
Fees: 0
Regular APR: 13.24 to 19.24
Limits: Standard
Credit Needed: Good.
Ink Business Preferred® credit card
Welcome Incentives: 100,00 bonus points after you spend and pay off $15,000 in first 3 months.
Fees: $95
Regular APR: 15.99 to 20.99.
Limits: Standard
Credit Needed: Good.
Southwest Rapid Rewards® Performance
Welcome Incentives: 40,000 bonus points after spending $1,000 in first 3 months, plus 4 upgraded boarding passes.
Fees: $149
Regular APR: 15.99 to 22.99
Limits: Standard
Credit Needed: Excellent.
Southwest Rapid Rewards® Premier
Welcome Incentives: 40,000 bonus points after $1,000 in first 3 months, plus 25% cash back on inflight purchases.
Fees: $99, will be applied to first billing statement.
Regular APR: 16.49 to 23.49.
Limits: Standard.
Credit Needed: Good.
United Business Card
Welcome Incentives: 75,000 bonus miles after spending $5,000 in first 3 months. Earn double miles when flying United and also on commuting expenses (such as local transit costs).
Fees: 0 the first year, then $99.
Regular APR: 16.49 to 23.49.
Limits: Standard
Credit Needed: Good
World of Hyatt Business Credit Card
Welcome Incentives: 60,000 bonus points (30,000 by spending and paying $3,000 in first 3 months, and 30,000 by spending another $3,000 in the next 3 months). Luxury travel credit cards.
Fees: $95
Regular APR: 15.99 to 22.99
Limits: Standard
Credit Needed: Excellent.
American Express Credit Card Types
Business Credit Cards from American Express
0% APR for 12 months makes these among the best balance transfer card choices.
Business Gold Card
Welcome Incentives: 80,000 rewards points after you spend and pay $10,000 in first 3 months. 0% APR for first 12 months.
Fees: $295
Regular APR: 14.24 to 22.24
Limits: Standard
Credit Needed: good.
Business Platinum Card®
Welcome Incentives: 150,000 points after spending and paying $15,000 in first 3 months. 0% APR for first 12 months. One of the favorite business credit cards. Access to airport VIP lounges.
Fees: $595
Regular APR: 14.24 to 22.24
Limits: Standard
Credit Needed: Good.
Blue Business CashTM Card and Blue Business® Plus Credit Card
Welcome Incentives: $500 credit after spending and paying $5,000 in first 6 months. 15,000 rewards points after $3,000 in eligible purchases in first 3 months. 0% APR for 12 months.
Fees: 0
Regular APR: 13.24 to 19.24
Limits: Standard
Credit Needed: good.
Plum Card®
Welcome Incentives: $500 credit after you spend and pay $15,000 in 3 months, 1/5% cash back. 1.5% early pay discount.
Fees: $250
Regular APR: 14.24 to 22.24
Limits:Standard
Credit Needed: Good.
Business Green Rewards Card
Welcome Incentives: Earn 25,000 points after spending and paying $3,000 within the first 3 months. Additionally, receive double points on travel purchases.
Fees: 0 the first year, then $95.
Regular APR: 14.24 to 22.24
Limits: Standard
Credit Needed: Good
Amazon Business Prime Cards
Welcome Incentives: Bonus categories include Amazon purchases and more. You’ll get 5% back on Amazon purchases and 2% back on restaurant purchases. $125 Amazon gift card with sign up. Great among general rewards credit cards.
Fees: 0
Regular APR: 14.24 to 22.24
Limits: Standard.
Credit Needed: Good.
Delta American Express SkyMiles® Business Cards
Welcome Incentives: 50,000 bonus miles and $50 credit after spending and paying $2,000 in 3 months. Double points back on Delta miles.
Fees: 0 for a year, then $99
Regular APR: 15.74 to 24.74
Limits: Standard
Credit Needed: Good.
Hilton Honors Business Card
Welcome Incentives: Earn 130,000 bonus points when you spend and pay off $5,000 within the first 6 months. Enjoy 7% cash back on Hilton purchases and 5% cash back on expenses at restaurants, gas stations, and supermarkets. This card stands out among different types of credit cards, offering exceptional travel rewards and bonuses for travel-related purchases.
Fees: 0
Regular APR: 15.74 to 24.74
Limits: Standard
Credit Needed: Good.
Marriott Bonvoy Business Card
Welcome Incentives: 3 free nights at a Marriott after you spend and pay off $3,000 in 3 months.
Fees: $95
Regular APR: 15.99 to 22.99
Limits: Standard
Credit Needed: Excellent.
Lowe’s Business Rewards Card
Welcome Incentives: Enjoy 5% off your purchases, discounts on deliveries, and 0% APR for the first 6 months. Plus, take advantage of a generous credit line.
Fees: 0
Regular APR: 15.74 to 24.74
Limits: Standard
Credit Needed: Good
Bank of America Credit Card Types
Small Business Credit Cards from Bank of America
Simple formulas to earn rewards.
Business Advantage Customized Cash Rewards credit card
Welcome Incentives: $300 bonus to sign up, 3% cash back on first $50,000 spent and paid off.
Fees: 0
Regular APR: 12.24 to 22.24
Limits: Standard
Credit Needed: Excellent.
Business Advantage Unlimited Cash Rewards credit card
Welcome Incentives: 1.5% cash back.
Fees: 0
Regular APR: 12.24 to 22.24
Limits: Standard
Credit Needed: Excellent
Business Advantage Travel Rewards credit card
Welcome Incentives: 25,000 points for sign up. 1.5 points earned for each dollar.
Fees: 0
Regular APR: 13.99 to 23.99
Limits: Standard
Credit Needed: Good
Alaska Airlines VISA Business credit card
Welcome Incentives: 60,000 miles credit on sign up.
Fees: $50 for company, $25 for each card.
Regular APR: 15.99 to 23.99
Limits: Standard.
Credit Needed: Excellent
Platinum Plus® Mastercard® Business card
Welcome Incentives: $300 credit after you spend and pay off $3,000 in first 3 months. 0% APR for first 7 months.
Fees: 0
Regular APR: 10.24 to 21.24
Limits: Standard
Credit Needed: Good
Wells Fargo Credit Card Types
Small Business – Product List – Wells Fargo Business Credit Cards
Low APRs make this a favorite from credit card issuers.
Wells Fargo Business Platinum Card
Welcome Incentives: $300 credit or 30,000 points after spending and paying off $3,000 in first 3 months. 0% APR for 9 months.
Fees: 0
Regular APR: 7.99 to 17.99
Limits: Standard
Credit Needed: Good
Wells Fargo Business Secured Credit Cards
Welcome Incentives: Favorite secured credit cards include this Wells Fargo offering. A $500 cash deposit will get you a $25,000 line of credit. Wells Fargo has additional offerings for secured cards.
Fees: 0
Regular APR: 11.9 on purchases, 20.74 on cash advances.
Credit Needed: Excellent
Wells Fargo Business Elite Signature Card
Welcome Incentives: $1,000 credit or 100,000 bonus points when you spend and pay off $25,000 in first 3 months.
Fees: 0 first year, then $125.
Regular APR: Prime plus 3.99%
Limits: Standard
Credit Needed: Excellent
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