Business Credit Card in the USA: A business credit card can be a game-changer for any small business owner, providing a simple way to manage expenses, earn rewards, and build business credit. With so many options in the U.S. market, it can be tough to pick the right card for your unique needs. Here, we’ll break down the different types of business credit cards, key features to look for, and some top options to help make your choice easier.
Why a Business Credit Card in the USA is Worth Considering
Business credit cards offer several benefits, often beyond what a personal credit card can provide. Here’s why getting a dedicated card for your business might be worth it:
- Easier Expense Tracking: Business credit cards come with tools to help you track spending by category, making it easier to manage finances and prepare for tax season.
- Building Business Credit: A business credit card helps build your business’s credit, which is essential if you ever want to qualify for larger loans or lines of credit in the future. This can be a big advantage as your business grows.
- Higher Credit Limits: Business cards often come with higher credit limits than personal cards, which can be helpful if your business has bigger expenses to cover.
- Rewards and Cash Back: Many business credit cards offer points, cashback, and other perks. With the right card, you could end up saving a good amount over time just by using it for your regular business expenses.
- Separating Finances: A business card keeps your business and personal expenses separate, which is especially important if you’re running a business for tax and liability purposes.
Types of Business Credit Card in the USA
Knowing the types of business credit cards available can help you narrow down what you need:
- Rewards Cards: These offer points or miles for every dollar you spend, with some cards giving bonus points on specific categories like travel or office supplies. They’re great if your business spends regularly in certain areas.
- Cashback Cards: Cashback cards give you a percentage back on your purchases. They’re straightforward and perfect if you prefer cash savings over points or miles.
- Travel Cards: If you travel often, a travel business credit card could be worth it. Many of these cards offer rewards on flights, hotels, and rental cars, along with travel perks like insurance and airport lounge access.
- 0% Intro APR Cards: Some cards offer 0% APR for an initial period (like 9-18 months), making it possible to make a large purchase and pay it off over time without interest. This can be useful for business owners needing to finance a big buy.
- Credit-Building Cards: These are good for new or smaller businesses looking to build their credit profile. These often come with smaller credit limits but can be a smart option if you’re just starting out.
- Charge Cards: Charge cards are similar to credit cards, but they require you to pay the balance in full each month. They usually don’t have a set spending limit, so they’re great if you have larger expenses but can pay off the balance monthly.
Features to Look for in a Business Credit Card in the USA
Here are some essential features to consider when choosing a card:
- Annual Fee: Business credit cards can have annual fees that range from $0 to $500 or more. Some of the pricier cards offer a lot of perks, but be sure they’re benefits your business will actually use.
- Rewards Structure: Look for a rewards program that fits your business spending. For instance, if you travel a lot, a card with extra points on travel might be ideal.
- Interest Rate (APR): If you plan to carry a balance, pay attention to the APR. While some cards offer 0% intro APR periods, regular APRs can vary significantly.
- Employee Cards: Many business cards allow you to get additional cards for employees. This feature can be helpful for tracking expenses and setting spending limits on employee cards.
- Sign-Up Bonuses: Many business credit cards offer sign-up bonuses if you meet certain spending requirements in the first few months. These bonuses can be very generous and are worth considering if you plan to spend a lot upfront.
- Perks and Protections: Some cards offer extra benefits like purchase protection, extended warranties, or travel insurance. These can add value, especially if you frequently make large purchases or travel.
- Management Tools: Expense tracking and management tools can simplify bookkeeping, budgeting, and tax prep. Many cards offer these tools for free as part of the card’s benefits.
Top Business Credit Card Options in the USA
Here’s a closer look at a few popular business credit cards in the USA and what they offer:
- Chase Ink Business Preferred® Credit Card
- Annual Fee: $95
- Sign-Up Bonus: Earn 100,000 points after spending $15,000 in the first 3 months.
- Rewards: 3x points on travel, shipping, internet, cable, phone services, and social media/online ads (on up to $150,000 per year).
- Best For: Businesses with high advertising and travel expenses.
- American Express Business Platinum Card®(Business Credit Card in the USA)
- Annual Fee: $695
- Welcome Offer: 120,000 points after spending $15,000 in the first 3 months.
- Rewards: 5x points on flights and hotels booked via Amex Travel.
- Perks: Airport lounge access, travel insurance, and exclusive event access.
- Best For: Businesses that travel often and want premium perks.
- Capital One Spark Cash Plus(Business Credit Card in the USA)
- Annual Fee: $150
- Sign-Up Bonus: $1,000 after spending $50,000 in the first 6 months.
- Rewards: 2% unlimited cashback on all purchases.
- Best For: Simple, no-fuss cashback for businesses of any size.
- Bank of America Business Advantage Customized Cash Rewards Mastercard®
- Annual Fee: $0
- Rewards: 3% cashback in a chosen category (like gas or office supplies), 2% at restaurants, and 1% on everything else (up to $50,000/year).
- Best For: Flexible cashback options for small businesses.
- U.S. Bank Business Triple Cash Rewards World Elite™ Mastercard®
- Annual Fee: $0
- Sign-Up Bonus: $500 after spending $4,500 in the first 150 days.
- Rewards: 3% cashback on eligible gas, office supplies, and restaurants.
- Best For: Cost savings on common business expenses like gas and office supplies.
Tips for Getting the Most Out of Your Business Credit Card in the USA
- Separate Personal and Business Finances: This helps with tax prep and protects your personal credit.
- Pay the Balance in Full: To avoid interest charges, try to pay off your balance each month. This also helps build good credit.
- Keep an Eye on Employee Spending: Many cards let you set spending limits on employee cards, which can help keep costs in check.
- Make the Most of Rewards and Perks: Use the rewards and cashback opportunities to save on things your business already needs.
- Take Advantage of 0% Intro APR Offers: If you need to make a big purchase, look for a card with a 0% APR introductory period to avoid paying interest.
Final Thoughts(Business Credit Card in the USA)
A Business Credit Card in the USA can be a powerful tool for managing expenses, earning rewards, and building business credit. To choose the right card, consider your business’s spending habits and what perks or rewards would benefit you the most. With a bit of research, the right business credit card can support your business’s growth and make financial management easier.