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Best Business Credit Cards of December 2020
By: Lyle Daly
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When it comes to credit cards for your business, what do you look for? At The Ascent, our experts look for low or no-fee cards with a low APR in our best business credit cards with rich rewards and perks. In our list of business credit cards, you'll see the leading options for business owners interested in cash back, travel rewards, and zero-interest financing offers.
The Ascent's picks for the best business credit cards:
- No annual fee and cash rewards: Ink Business Cash® Credit Card
- Gas and travel: Costco Anywhere Visa® Business Card by Citi
- Unlimited cash back: Ink Business Unlimited® Credit Card
- Sign-up bonus and travel points: Chase Ink Business Preferredâ„ Credit Card
- Rewards flexibility: American Express Business Gold Card
- Sign-up bonus and travel miles: Capital One® Spark® Miles for Business
- Limited credit history: Capital One® Spark® Classic for Business
- Sign-up bonus and cash rewards: Capital One® Spark® Cash for Business
- 0% intro APR and cash back: Blue Business Cashâ„¢ Card from American Express
Great for: No annual fee and cash rewards Ink Business Cash® Credit Card
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
For cardholders wanting the simplicity of cash back, plus up to 5% back on select categories and a $0 annual fee. Read Full Review
Rewards
5% back at office supply stores and internet, cable and phone services (on $25,000 spent each year), 2% back at gas stations and restaurants (on $25,000 spent each year), 1% on all else
Annual Fee
$0
Intro APR
Purchases: 0%, 12 months
Balance Transfers: N/A
Ongoing APR
13.24% - 19.24% Variable
Bonus
$750 after spending $7,500 within 3 months
Highlights
- Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- Earn 1% cash back on all other card purchases with no limit to the amount you can earn
- 0% introductory APR for 12 months on purchases
- Employee cards at no additional cost
- No Annual Fee
Great for: Gas and travel Costco Anywhere Visa® Business Card by Citi
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
The gas cash back, alone, makes this a winner. The premium cash back for restaurants, travel, and Costco purchases make it hard to beat, even more so for Costco members. Read Full Review
Rewards
4% back on gas ($7,000 annual spending cap), 3% back on restaurants and travel, 2% back on Costco purchases, 1% back on all else
Annual Fee
No annual fee for this credit card with your paid Costco Membership.
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.24%, variable
Bonus
N/A
Highlights
- Discover the only business credit card designed exclusively for Costco members
- 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Whether you're traveling for business or pleasure, enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Great for: Unlimited cash back Ink Business Unlimited® Credit Card
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
This business card offers a great one-two punch with a lucrative sign-up bonus plus cash back. Read Full Review
Rewards
1.5% on every purchase
Annual Fee
$0
Intro APR
Purchases: 0%, 12 months
Balance Transfers: N/A, N/A
Ongoing APR
13.24% - 19.24% Variable
Bonus
$750 after spending $7,500 within 3 months
Highlights
- Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- 0% introductory APR for 12 months on purchases
- Employee cards at no additional cost
- No Annual Fee
Great for: Sign-up bonus and travel points Chase Ink Business Preferredâ„ Credit Card
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
What We Like About The Card
With a huge sign up bonus and massive on going rewards rate of 3x points per $1 on business essentials this card is a home run for businesses that spend a lot and want to maximize their rewards. Read Full Review
Rewards
3 points per $1 on the first $150,000 spent on travel and select business categories, 1 point per $1 on all else. Points are worth 25% more when you redeem for travel through Chase.
Annual Fee
$95
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.99% - 20.99%, variable
Bonus
100,000 points after spending $5,000 within 3 months
Highlights
- Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when you redeem through Chase Ultimate Rewards®
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
- Earn 1 point per $1 on all other purchases with no limit to the amount you can earn
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards
- Redeem points for travel, cash back, gift cards and more - your points don't expire as long as your account is open
- No foreign transaction fees
- Employee cards at no additional cost
- $95 Annual Fee
The information related to Chase Ink Business Preferredâ„ Credit Card has been collected by The Ascent and has not been reviewed or provided by the issuer.
Great for: Rewards flexibility American Express Business Gold Card
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
The card brings innovative points-earning flexibility with the option to choose which categories earn 4x points. The inclusion of a nice welcome bonus sweetens the pot. Read Full Review
Rewards
4 points per $1 in two categories of choice, 1 point per $1 on all else
Annual Fee
$295
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
14.24% - 22.24%, variable
Bonus
35,000 points after spending $5,000 within 3 months
Highlights
- Welcome Offer: Earn 35,000 Membership Rewards® points after you spend $5,000 in purchases on the Card within your first 3 months of Card Membership
- Get 4X points - Choose 2 out of 6 categories for the first combined $150,000 spent
- Plus, 2X points on the 4 remaining categories and 1X points on other purchases
- Track, organize, and stay on top of your business expenses with powerful expense-tracking tools
- No foreign transaction fees
- $295 annual fee
- Terms and limitations apply
Great for: Sign-up bonus and travel miles Capital One® Spark® Miles for Business
Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
What We Like About The Card
One of the best cards for businesses looking to capitalize on a travel reward for their everyday purchases. With a big sign up bonus, 2x miles, and low fees, it is a great choice for jet-setting small businesses. Read Full Review
Rewards
5x miles on hotel and car rentals booked through Capital One, 2x miles on all else, transfer miles to 10+ travel loyalty programs
Annual Fee
$0 intro for first year; $95 after that
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
20.99%, variable
Bonus
50,000 bonus miles after spending $4,500 within 3 months
Highlights
- Earn a one-time bonus of 50,000 miles – equal to $500 in travel – once you spend $4,500 on purchases within the first 3 months from account opening
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Earn 5X miles on hotel and rental car bookings through Capital One Travel℠ using a Spark Miles card
- Transfer your miles to 10+ leading travel loyalty programs like JetBlueâ„¢, Air Canada, and Emiratesâ„¢
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- Fly through security with one statement credit for either the $85 TSA Pre✓® application fee or the $100 Global Entry application fee
- $0 intro annual fee for the first year; $95 after that
- Free employee cards which also earn unlimited 2X miles from their purchases
Capital One® Spark® Miles for Business is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: Limited credit history Capital One® Spark® Classic for Business
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
What We Like About The Card
For businesses or borrowers with limited or average credit, this card is a winner. All purchases earn unlimited 1% cash back, plus it includes a $0 annual fee. These perks are rare for cards designed for people with lower credit scores. Read Full Review
Rewards
Unlimited 1% cash back
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
26.99%, variable
Bonus
N/A
Highlights
- Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions
- No annual fee
- Build and strengthen credit for your business by using this credit card responsibly
- $0 Fraud Liability if your card is lost or stolen
- Free employee cards, which also earn unlimited 1% cash back on all purchases
- Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
Capital One® Spark® Classic for Business is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: Sign-up bonus and cash rewards Capital One® Spark® Cash for Business
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
What We Like About The Card
An easy choice for businesses looking to only carry one card for all general purchases. The bonus is among the biggest you'll find and the flat 2% cash back rate outpaces the competition as well. Read Full Review
Rewards
Unlimited 2% cash back
Annual Fee
$0 intro for first year; $95 after that
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
20.99%, variable
Bonus
$500 after spending $4,500 within the 3 months
Highlights
- Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening
- Earn unlimited 2% cash back for your business on every purchase, everywhere, no limits or category restrictions
- $0 annual fee for the first year; $95 after that
- Free employee cards, which also earn unlimited 2% cash back on all purchases
- $0 Fraud Liability if your card is lost or stolen
- Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
Capital One® Spark® Cash for Business is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: 0% intro APR and cash back Blue Business Cashâ„¢ Card from American Express
Rating image, 3.5 out of 5 stars.
3.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
With generous cash back rewards, an intro APR offer, and free employee cards, this no annual fee card is great for businesses that don't spend too much every year. Read Full Review
Rewards
Earn 2% back on every purchase, up to $50,000 of spending per calendar year, then 1%.
Annual Fee
$0
Intro APR
Purchases: 0%, 12 months
Balance Transfers: N/A
Ongoing APR
13.24% - 19.24%, variable
Bonus
N/A
Highlights
- Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
- From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
- Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
- 0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 13.24% - 19.24%, based on your creditworthiness and other factors as determined at the time of account opening.
- No Annual Fee
- Terms Apply
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When you shop for business credit cards, you'll probably have questions. What makes a business card different from a regular credit card? Do you need a business credit card? How can you know if you'll qualify for this type of credit card?
Fortunately, business credit cards aren't that complicated. It's worth learning how they work and what makes them special, because their perks can be invaluable for businesses large and small.
What is a business credit card?
Credit cards for business use typically have a few features that personal credit cards don't, including higher credit limits, more travel perks, and higher limits on the free insurance you get when you make a purchase.
Here's how business credit cards differ from personal cards:
- Business-focused rewards: Business cards often pay out bonus rewards for spending in bonus categories. Some offer bonuses for spending on phone bills, office supplies, online advertising, and other common business expenses.
- High credit limits: Businesses simply have larger spending needs than individuals, so business credit cards are typically high-limit credit cards. The average person might not need to swipe a personal card for a $25,000 purchase, but many businesses pay large bills from suppliers and vendors.
- Perks for business users: Some cards offer features for frequent fliers, like credits to pay for TSA PreCheck or Global Entry, airport lounge access, and increased travel insurance. They also typically offer no foreign transaction fees, so you won't have to worry about that added cost when you make purchases with companies who process payments through a foreign bank.
- Credit bureau reporting: Business cards report to business-specific credit scoring databases, helping you build credit as a business.
What to look for in a business credit card
There are several features to look for in a business credit card, including:
- High rewards rate: You can find cash back and travel rewards business credit cards. With either option, you should look for a card that earns a high flat rate on every purchase, or one that earns extra in the categories where your business spends quite a bit.
- 0% intro APR offer: If you have any major business expenses coming up that you need to finance, a business card with a 0% intro APR is a great choice. You can pay off those expenses interest-free until the end of the card's intro period. Note that the interest rate will increase after the intro offer expires, so it's imperative to pay down your balance before that happens. For expenses that will take much longer to pay off, it's worth checking whether a business loan or credit card will save you more money.
- Expense tracking: Many business cards include detailed information on how your business spends money. This can help you budget and ensure you're using money wisely.
- Free employee cards: If you have employees or plan to hire employees in the future, then you may want the option to issue employee credit cards free of charge. Also look for an option to adjust credit limits on employee cards so no employee can max out your card account.
- Big sign-up bonus: Although a sign-up bonus isn't exactly a must on a business credit card, it's nice to earn a large chunk of cash back or travel points shortly after getting your card.
What do I need to know about business cards?
What people often don't realize about business credit cards is that you can get one surprisingly early in your business's lifespan, and it's smart to do so.
In fact, you don't need a registered business to apply for a business credit card. Card issuers let you apply as a sole proprietor, using your Social Security number. The business also doesn't have to be profitable yet. Your application can get approved based on your personal income. When you apply for a business credit card, the card issuer will look at your personal financial information and credit history.
While there are many benefits to business credit cards, the primary reason it's so important to have one is to keep your personal and business expenses separate. It's harder to track spending separately for yourself and your business if all your expenses are mixed together on the same card. During tax season, you'll be happy you got a business credit card when you can review your card's expense reports for deductions.
How to compare business credit cards
The way to compare the best business credit cards is to first figure out what benefits you need most.
For the typical business owner, rewards are a priority, since they earn you a percentage back on all your business expenses. If that's the case for you, then here's how you would choose a business credit card:
- Decide whether you prefer a cash-back card or a travel rewards card.
- Check the rewards rates (how much a card earns back on each purchase).
- Review any spending caps on bonus rewards. For example, a card may earn 5% back on the first $25,000 you spend per year in select bonus categories. That spending cap may not be a problem for many businesses, but it could if your business spends $5,000 or more in that category each month.
Depending on your and your business's needs, you may prioritize something different in a business credit card. If you need to borrow money to finance an expense, for instance, then you should compare cards based on intro APR offers. If your credit isn't the best, then look for business cards you can get without a good credit score.
Is a business card right for me?
Business credit cards offer a lot of spending power, but that comes with a lot of responsibility, too. Here's a checklist to help you decide if a business card is right for you.
- You own your own business. At the risk of stating the obvious, owning a business is a prerequisite to getting a business credit card. It doesn't have to be a big business -- it could just be a side gig -- but you should have some reasonable need for a business card to apply for one.
- You want to establish a business banking relationship and credit. This is one of the best reasons to apply for a business card. Having a relationship with a major bank can be useful if your business will need other forms of financing at a later time to purchase things like cars, equipment, or real estate.
- You won't carry a balance. There are very few businesses that can afford to pay double-digit interest rates to borrow money. Credit cards are one of the most expensive sources of financing, so credit cards are best used as a payment method, not a financing method.
- You're willing to be personally liable. Charges you make to a business credit card can be a personal liability, and though many business cards will not report good payment history to the personal credit bureaus, they will report it if your account is seriously delinquent. For this reason, a business credit card is not usually a good solution for building personal credit history.
FAQs
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Getting a business credit card isn’t always as easy as getting a personal credit card. Given that business card users tend to spend more heavily than personal card users, the underwriting process can be a little more stringent.
Here are some things that will make it more likely you’re approved:
- Have good to excellent personal credit scores
- Have business history
- Use an EIN (employer identification number) on the application
- Apply for the right card
Our list of the best business cards includes cards that go up and down the credit spectrum. As a rule of thumb, cards with a lower minimum credit line are more likely to approve people with lower spending needs and credit scores than cards with higher minimum credit limits.
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One of the interesting things about business cards is that, besides elevated rewards rates, you don’t have to pay an annual fee to get additional perks from a business card.
For example, if you want a personal card that offers primary insurance against rental car damage, the least expensive option carries an annual fee of $95. However, business cards are different.
Therefore, we tend to think that it’s worth paying an annual fee only if you spend so much that a higher rewards rate pays for the annual fee. The table below compares two popular Capital One business cards on the basis of rewards and annual fees.
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The best business credit cards require good credit, and that range starts at a FICO® Score of 670. Of course, a higher score is always better when applying for credit cards.
There are business credit cards available to those with lower scores. Depending on the card you choose, you could qualify even with a credit score below 600. However, these cards won't offer nearly as many benefits. If possible, it's better to improve your credit first so you can qualify for a card that will help your business more.
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A business credit card generally won't affect your personal credit score, but there are exceptions. The card issuer will run a hard credit inquiry when you apply for the card. Hard inquiries lower your credit score by a small amount (less than five points on average). If you miss payments on your business card and the account goes to collections, that will cause a significant drop in your credit score.
There are also a few card issuers that report activity from their business credit cards to personal credit bureaus. If you have a business card with one of these card issuers, then your business card's balance and payment history can affect your credit score.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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