Business credit cards are essential for helping business owners manage cash flow and access emergency funds during a drought. However, selecting the right business credit card can be a hassle.
To start, there are several factors to consider when choosing the right business credit card, from navigating interest rates to assessing annual fees. If you’re looking to apply for a new business credit card, this guide is perfect for you.
Below, you’ll find some of the best business credit cards in 2021.
Best Card For Cash Back: Capital One Spark Cash for Business
The Capital One Spark Cash for Business credit card is one of the most rewarding business cards on the market.
It offers unlimited two percent cash back on every dollar spent, no matter where you spend it or what you buy: gas and groceries included!
For example, if your monthly expenses total $20K, then using this card will give you an additional $400 in extra spending money each month – enough to cover a nice vacation with that special someone after tax season rolls around.
If that’s not impressive enough, note that there are no annual fees associated with owning the Capital One Spark Cash for Business credit card (ever!).
Instead, users can expect to pay interest rates as low as 12% APR once they’ve made their first purchase.
Also For Cash Back: SimplyCash® Plus Business Card from American Express
The SimplyCash® Plus Business Card from American Express is another great option for small business owners who want cash back without a lot of strings attached.
This card offers five percent cash back on any purchase made at an office supply store – it’s the perfect place to stock up those ever-expanding paper clips and toner cartridges!
And if you’re looking to get your monthly expenses under control, this card also allows users to earn three times as much cash back when they make purchases over $5000 in a period of six months or less (for example).
That means that after charging just $25K each month for half a year, you’ll have built up enough rewards points to buy yourself about two domestic flights with all remaining funds rolled into savings.
To Help With Cash Flow: The Plum Card® from American Express OPEN
The Plum Card® from American Express OPEN is a great option for business owners who want to smooth out their cash flow.
It offers users a low 12-month APR – or zero percent interest on purchases and balance transfers during your first year as a cardholder!
However, there’s a catch: this will only be possible if you can pay off the entire amount of any existing credit card debt that you have before applying for The Plum Card® from American Express OPEN.
If You Travel: The Business Gold Rewards Card from American Express OPEN
The Business Gold Rewards Card from American Express OPEN is another great option for business owners who are constantly on the go.
It offers generous travel rewards, which can be used to book flights or hotels with no blackout dates or restrictions. Plus, it’s incredibly easy to apply online in just a few minutes!
Just make sure that you’re prepared before applying: if your company doesn’t have at least three employees and more than $20K in annual sales, then you won’t qualify to become an authorized user of this card (but there are plenty of other options out there).
How to Choose the Best Business Credit Card
Above are some of the best business credit cards available for business owners. However, if you’re new to applying for a business credit card, it’s best to review this information to ensure you make the right choice.
Learn How Business Credit Cards Work:
There are two main types of business credit cards: charge cards and credit cards.
Charge Cards require full payment for purchases made on the account each month, while Credit Cards have a fixed spending limit that must be paid off at regular intervals.
Know Where Your Personal Credit Stands:
If you’re a business owner who has been in charge of your company for at least a year, then it’s likely that the credit card issuer will be able to pull up all of your personal credit information when reviewing your application.
You may also want to consider asking an employee from within the organization with good personal and business credit scores if they would like to become an authorized user on your account.
This can help give you access to more favorable rates once approved.
Consider Fees & Annual Costs:
Most business owners won’t have any trouble finding a great deal on fees or interest rates – just make sure that these numbers are clearly labeled before applying. For example, some cards only offer 0% APR for six months.
Figure Out How You’ll Use Your Credit Card:
It can be difficult to use a credit card for business purposes if you’re not sure what the best features are or how they will work.
If you need help choosing, make sure that your employees know exactly how it works before applying (or get in touch with us here at Business Insider Intelligence).
Asking these questions ahead of time may also prevent any confusion during the application process.
Assess Your Financial Situation:
If you’re still in the process of building up your company, it’s best to wait until your business is well-established before applying for any type of credit card.
This will allow you to avoid making unnecessary purchases or having trouble paying off balances later on.
Weigh the Pros and Cons:
Don’t forget to compare the cards above with other options available on the market.
Look at what fees are included, which rates you qualify for, and how long it will take you to pay off your balance if applying for a card with an APR or minimum interest rate higher than zero percent.
You may also want to consider asking friends and family about their experiences before making any decisions!.
The Bottom Line:
If you’re concerned with your company’s finances, applying for a business credit card may be a great solution. But first, it helps to review all of the information in this guide before making a final decision.
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