Business credit cards can be a great way to separate your personal and business expenses, build your business credit history, and earn rewards. However, there are a few things you need to know before you apply for a business credit card.
Here are some of the things to consider when choosing a business credit card:
- Rewards: Many business credit cards offer rewards, such as /www.pankpages.com cash back, travel points, or miles. Choose a card that offers rewards that you will actually use.
- Annual fee: Some business credit cards have an annual fee. Consider whether the benefits of the card outweigh the annual fee.
- Interest rate: The interest rate on a business credit card is typically higher than the interest rate on a personal credit card. Make sure you can afford to pay the balance in full each month to avoid paying interest.
- Credit limit: The credit limit on a business credit card is the maximum amount of money you can borrow. Choose a credit limit that is high enough to cover your business expenses, but not so high that you are tempted to overspend.
- Card type: There are different types of business credit cards, such as charge cards, credit cards, and debit cards. Charge cards do not have a preset credit limit and must be paid in full each month. Credit cards have a preset credit limit and you can carry a balance from month to month. Debit cards deduct money directly from your business checking account when you make a purchase.
Once you have considered these factors, you can start comparing different business credit cards. There are many resources available to help you compare cards, such as online comparison tools and credit card reviews.
When you are ready to apply for a business credit card, be sure to have your business information ready, such as your business name, address, and tax ID number. You will also need to provide your personal information, such as your Social Security number and income.
Getting a business credit card can be a great way to improve your business’s financial health. By carefully considering your needs and comparing different cards, you can find the best business credit card for your business.
Here are some of the best business credit cards on the market:
- Chase Ink Business Preferred: This card offers a welcome bonus of 80,000 points after you spend $5,000 in the first 3 months. It also earns 3x points on travel, shipping, internet, cable, and phone services, and 2x points on gas stations and restaurants.
- Capital One Spark Cash Plus: This card offers a welcome bonus of $500 after you spend $4,500 in the first 3 months. It also earns 2% cash back on all purchases.
- American Express Blue Business Cash Card: This card offers a welcome bonus of $250 after you spend $3,000 in the first 3 months. It also earns 2% cash back on all purchases.
- Discover it® Business: This card offers a welcome bonus of 5% cash back on up to $500 in purchases in your first 3 months. It also earns 2% cash back on gas stations and restaurants and 1% cash back on all other purchases.
- U.S. Bank Business Cash Rewards Visa® Card: This card offers a welcome bonus of $500 after you spend $3,000 in the first 3 months. It also earns 2% cash back on all purchases.
No matter which business credit card you choose, make sure to use it responsibly and pay your bill on time each month to avoid interest charges and build your business credit history.