Best Business Credit Cards for Startups for 2024

Starting a new business can feel like an endless stream of expenses. A good credit card can help you get what you need, when you need it. A great credit card will also earn valuable rewards and offer useful perks. Our picks for the best credit cards for startups include cards that can suit nearly any type of business. Read on to see how to find and apply for the best credit card for your startup.

How do I get a business credit card for my startup?

The first thing to determine is whether you need a regular small business credit card or a corporate card. In general, only large corporations with millions in annual revenue will qualify for a corporate card. Unless your startup has significant venture capital, you'll likely need a small business credit card.

Applying for a small business credit card is very similar to applying for a personal credit card. You simply choose a credit card, head to the issuer's website, and click "Apply." Fill out the application, submit it -- and wait. In most cases, you should get an online decision from the card issuer within a few minutes. Your application may sometimes need additional review, in which case you may need to wait up to a week for a decision to be mailed to you.

Information needed for a business credit card application

You'll need to provide information about you and your business when you apply. Typical requirements for a business card application include:

• Your name
• Your address
• Your date of birth
• Business structure (LLC, S Corp, etc.)
• Legal business name
• Business address
• Business phone number
• Date your business was established
• Business category (manufacturing, retail, etc.)
• Tax ID number (ETIN for LLC/corporations, SSN for sole proprietors)
• Your average annual business revenue
• Estimated monthly credit card spend

As a startup, you may not have much revenue to report. That's OK! Banks understand that starting a small business is a long-term project. You can still get some of the best business credit cards for startups if your revenue is a work in progress. The important thing is to avoid padding your numbers. If the bank asks for supplemental documentation, you could be in real trouble if you lied on the application.

Credit card issuer rules

Some credit card issuers have specific rules about who can apply that have little to do with your business. Most are limitations on how many cards you can have and how often you can open them.

For example, American Express has limits on how many Amex cards you can have at any one time. You can also only earn one welcome offer per Amex card product per lifetime.

Chase is another credit card company with application restrictions. In particular, Chase has what's known as the 5/24 rule. This rule means you'll generally be rejected for a new card if you've opened five or more cards in the last 24 months. This rule applies to both consumer and business credit cards.

READ MORE: How to Apply for a Chase Business Credit Card

How to pick the best business credit card for your startup

There's no one-size-fits-all credit card for every startup. Choosing the best card for your new business will depend on several factors. When comparing credit card types, consider the rewards, the cardholder benefits, and any applicable card fees (including an annual fee).

The credit card rewards

Purchase rewards are one of the best perks of credit cards. But the type of rewards you choose can influence how you use your card.

• Cash back: Cash back rewards are the simplest type of credit card rewards. You earn it at a set rate, and redeem it at a set rate. Most cash back cards let you redeem for a statement credit to help pay your credit card balance. Some also offer gift card purchases.
• Points: Rewards points are ideal for people who want flexibility in how they use their rewards. Many points programs let you redeem for everything from cash back to travel. The best points programs also let you transfer your rewards to an airline or hotel loyalty account.
• Miles: The nature of miles rewards will vary by card. With regular bank-branded cards, miles operate similarly to points. You can redeem for statement credit, gift cards, or sometimes transfer to a hotel or airline account. However, if you have a cobranded airline credit card, you'll earn actual frequent flyer miles for the airline associated with your card.

READ MORE: How Do Credit Card Points Work?

Need a credit card for your startup? Check out The Ascent's Hilton Honors American Express Business Card review and see how you can earn free hotel stays.

Choosing the type of rewards

The type of rewards you choose can greatly impact their value. This is due to the different ways you can redeem them. Cash back is usually pretty straightforward. If you earn $5 in cash back, it redeems for $5 in statement credit.

Points and miles can have variable values. Redeeming points/miles for statement credit can yield $0.005 to $0.01 per point. But if you transfer your rewards to an airline or hotel account, you could earn $0.01 to $0.04 or more by redeeming for certain types of travel.

Related: Want a different business credit card? Check out The Ascent's Brex Card review.

Maximizing your rewards

Regardless of which type of rewards you choose, make sure it aligns with your expenses. Many of the best business credit cards for startups offer bonus rewards categories that can greatly increase your rewards. Some common bonus categories for small business credit cards include:

• Travel
• Dining
• Gas
• Advertising
• Shipping
• Internet/cable
• Cellphones

If you're not interested in tracking rewards categories, a good flat-rate rewards card is always an option. These cards offer the same rewards rate on your purchases no matter the category.

READ MORE: How to Maximize Your Credit Card Rewards

The cardholder benefits

Many business credit cards will offer useful -- and potentially valuable -- cardholder benefits. These can purchase benefits as well as travel benefits. Here are a few popular card membership benefits you may find useful:

• Purchase protection: Some business cards will offer purchase protection on eligible purchases made with your card. This typically covers you in case of theft or damage for up to six months after your purchase.
• Extended warranty: Cards with extended warranty protection are great for avoiding store warranties. They can extend the manufacturer's warranty on a product for a year or more.
• Cellphone protection: Some business credit cards offer protection against theft or damage to your company phone. You'll need to pay your cellphone bill with your card to be eligible.
• Fraud protection: Your fraud liability for consumer credit cards is limited by law. Business credit cards don't have the same legal protections. But many business card issuers will offer $0 fraud liability as a cardholder benefit.
• Travel perks: With certain travel rewards cards, you'll also get access to extra travel benefits. This might include free airport lounge access or complimentary elite status with a hotel brand.
• Trip cancellation/interruption insurance: If your business trip is canceled or interrupted, it can cost hundreds or thousands in nonrefundable travel expenses. Trip insurance can reimburse you in many covered situations, including weather and sickness.
• Rental car insurance waiver: Some business cards offer rental car insurance waivers on cars rented for business purposes. Make sure to check if coverage is primary or secondary. Primary coverage kicks in before your own auto insurance. Secondary coverage kicks in after your auto insurance.

READ MORE: Do You Need Rental Car Insurance Coverage?

The fees

Credit card fees are an unfortunate part of being a cardholder. But many of these fees are avoidable. For example, paying your balance in full before your due date helps you avoid paying interest fees. Other fees are only avoidable by choosing a credit card that doesn't charge them. Here are some fees to consider when comparing business credit cards:

• Interest fees: As noted above, one surefire way to avoid credit card interest fees is to pay your balance in full before your due date. But if you need to carry a balance beyond your due date, you do have options. A credit card with an intro 0% APR offer can give you 12 months or more of 0% interest on purchases. (Remember, you still need to make at least your minimum payment on time every month.)
• Annual fees: Credit card annual fees can be worth paying in some cases. If you can get better rewards, for instance. But if you're not spending enough on your card to make up for the annual fee, skip it. Plenty of great business credit cards come without annual fees.
• Foreign transaction fees: You can be charged a foreign transaction fee (FX fee) for any purchases in a foreign currency. FX fees can also occur when making a purchase that routes through a foreign bank. Fees average around 3%, which can add up quickly if you regularly use foreign suppliers. Choose a card without foreign transaction fees to avoid these costly charges.
• Employee card fees: Employee cards can be useful if your startup has multiple employees who need to make purchases. In that case, look for issuers that don't charge for extra employee cards.

RELATED: Want another option for a business card? Check out The Ascent's United℠ Business Card review.

How's your credit score? The Ascent has a guide on the best business credit cards for no credit.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

Our highest-rated credit cards have:

• A rewards rate above 2% (or 2x points or miles) with average spending, or competitive 0% intro APR balance transfer and purchase offers
• Attainable welcome bonuses that make up for any annual fees
• Low annual fees or a balance transfer fee of 3%
• Top perks such as purchase and travel protections, no foreign transaction fees, travel credits, and status upgrades

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.