Verdict: It’s often hard for new small business owners to establish credit in their business name. The Capital One Business Platinum Visa card is a good fit for entrepreneurs with “good” credit looking for a card with zero percent interest for the first year and no annual fee. The modest credit limit of $5000, maximum, (although you can call for instant approval of a credit limit increase), makes this card practical as a primary card only for small business owners.

However, the Capital One Business Platinum card lacks any Rewards programs or most of the benefits associated with most other cards in the Capital One family. Additionally, the card lacks benefits that now come standard on most credit cards, including fraud protection and warranty protection on purchases.

It begs the question: Why not just apply for a regular – not business – credit card with Rewards and a low interest rate? Especially for business owners who travel a lot, there are better credit cards out there, which will pay you cash back or miles to redeem for travel, merchandise or cash.

Overview: The Capital One Business Platinum card is designed for business owners looking to establish credit with a straightforward credit card from a reputable bank. The card has no annual fee and no additional charge for employee cards. A year-end statement is available that makes it easy for business owners to keep track of expenses. Capital One acknowledges that this is not the robust card in their product family, calling it “a simpler alternative to our other business card options.”

How this Card Works: The card offers a 0% intro APR for until October 2010, and a variable rate of 14.99%, 19.99% or 24.99% after that, depending on your credit.

As with other Capital One cards, your APR may rise to the default rate if you pay late two times within any 12 month period. Additionally, one late payment puts your 0% intro APR at risk.

Balance transfers, even within the first year, will receive the standard APR. Applicants will receive a credit limit between $500 and $5000 based on their credit rating.

Business owners can manage their account easily online, and also receive discounts from select merchants when they use their Capital One Visa.

Rewards: There are no rewards associated with this card.

Benefits: Through the Visa Business Partner Advantage program, cardholders receive discounts and savings at popular merchants when they pay with their Capital One Visa card. Participating retailers include OfficeMax, K-Mart, Hertz, Alamo, Barnes & Noble and the Hilton Family of Hotels. Offers change often, so cardholders can check the link through CapitalOne.com to see the current offers. Many deals require a minimum purchase to receive savings, but some discounts offer up to 60% in savings.

Pros:

• No annual fee
• 0 % introductory APR for the first year
• Additional employee discounts offered at no charge
• Can make 2 late payments in 12 months before receiving default APR
• Easily accessible to new business owners with “good” credit
• Discounts offered at popular retailers through Visa Business Advantage Program

Cons:

• No rewards for purchase
• No travel benefits, such as travel insurance or 24-hour travel assistance
• No road trip benefits such as rental car insurance or 24-hour roadside assistance
• Maximum credit limit of $5000 (upon approval)
• No purchase warranty protection
• No fraud protection

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