When you're running a business, it's important to have access to credit so you can make purchases and manage cash flow. But with so many different business credit cards on the market, it can be hard to know which one is right for your company.
To help you make the best decision, we've put together a complete guide to business credit cards. We'll cover everything from the basics of how business credit cards work to the different features and benefits they offer. By the end of this guide, you'll know exactly which business credit card is right for your needs.
What is a Business Credit Card?
A business credit card is a type of credit card specifically designed for businesses. They typically offer higher credit limits and more features and perks than personal credit cards.
Business credit cards can be used to cover business expenses like office supplies, travel, and marketing. They can also be used to manage cash flow and make purchases in bulk.
There are a few different types of business credit cards, including cards for small businesses and cards for larger businesses. Small business credit cards typically have lower credit limits and fewer perks than business credit cards for larger businesses.
How Do Business Credit Cards Work?
Business credit cards work just like personal credit cards. You can use them to make purchases, pay bills, and withdraw cash from ATMs.
The major difference is that business credit cards usually have higher credit limits than personal credit cards. They also offer different perks, like cash back rewards and air miles.
Business credit cards are issued by banks and other financial institutions. When you apply for a business credit card, the issuer will pull your business credit report to see if you're eligible.
Your business credit score is a three-digit number that ranges from 300 to 850. It's similar to your personal credit score, but it looks at your business's financial history instead of your personal financial history.
If you have a high business credit score, you're more likely to be approved for a best business credit card with a high credit limit.
What are the Benefits of a Business Credit Card?
There are several benefits of using a business credit card, including the following:
1. You can use them to cover business expenses.
2. You can use them to manage cash flow.
3. You can use them to make purchases in bulk.
4. You can use them to get rewards like cash back or air miles.
5. You can use them to build your business credit score.
Which Business Credit Card is Right for Me?
The best business credit card for you will depend on your business's needs and spending habits. Some cards offer great rewards, while others have low interest rates.
To help you choose the right card, we've compiled a list of the best business credit cards in 2020.
The Best Business Credit Cards of 2020
1. The Capital One® Spark® Cash for Business: This card offers 2% cash back on all purchases, making it a great choice for businesses that spend a lot of money.
2. The Ink Business Preferred℠ Credit Card: This card offers 3x points on popular business categories like travel and advertising. It also has a $95 annual fee, making it a good choice for businesses that spend a lot on those categories.
3. The Blue Business® Plus Credit Card from American Express: This card offers 2x points on all purchases, making it a great choice for businesses that don't want to keep track of bonus categories. It also has no annual fee, making it a good option for small businesses.
4. The Chase Ink Business Cash℠ Credit Card: This card offers 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet, and cable TV services each account anniversary year. It also has a $0 annual fee, making it a good option for small businesses.
5. The Capital One® Spark® Miles for Business: This card offers 2x miles on all purchases, making it a great choice for businesses that spend a lot on travel.
6. The American Express® Business Gold Card: This card offers 4x points on the two categories that you spend the most money on each month. It also has a $250 annual fee, making it a good choice for businesses that spend a lot of money.
7. The Wells Fargo Business Elite Signature℠ Credit Card: This card offers 1.5% cash back on all purchases, making it a great choice for businesses that don't want to keep track of bonus categories.
