When I started my new business, getting a credit card was the last thing on my mind. As expenses came up that I needed to charge, such as buying something online, I used a personal card. Then it came time to file my taxes. Oh how I wished I’d used a business credit card, or at least a card that I used for nothing other than company expenses.
Having learned my lesson the hard way, I spent a ton of time researching the best business credit cards for a small business like mine. While the business doesn’t have any employees, I did want the flexibility to be able to request more cards if and when the business grows. The results of this research were enlightening. Here are few things I learned:
- Many Cards–Three Flavors: While there are many business credit cards to choose from, they all basically fall into about three categories: Low Interest, Cash Back, and Travel.
- Nice Rewards: I was surprised to see some of the perks offered on business credit cards. Depending on what you value most, you can find everything from 0% introductory offers (which can be great for a start up) to significant cash bonuses and incentives.
- Sole Proprietorship: It’s perfectly fine to get a business card even if your company is a sole proprietorship. You don’t have to incorporate or form an LLC to qualify for a business credit card.
Which type of card is best for any small business depends on how the card will be used. If you plan to travel a lot, a business credit card with travel rewards can offer substantial savings on airfare and hotel stays. If travel is not your focus, but everyday purchases of supplies and equipment is, a cash back rewards card may be the best choice. And if you are looking to finance your company in part with credit cards, a card with a 0% offer may be the way to go.
To give you an idea of the credit card offers available to small businesses, let’s take a look at Chase Ink. Chase is the most popular credit card issuer, and its Ink business cards offer just about every benefit you could want in a card. Here’s a quick summary of the Ink cards:
| Ink Cash(SM) Business Card | Ink(SM) Bold with Ultimate Rewards(SM) | Ink(SM) Classic | |
|---|---|---|---|
 |  |  |
|
| Type | Credit Card | Charge Card | Credit Card |
| Intro Rates | 0% Intro rate for 6 months | N/A | 0% Intro rate for 6 months |
| Annual Fee | $0 | $95 (waived first year) | $0 |
| Rewards | Up to 5 points for each $1 spent on specific categories and 1 point per $1 on all other purchases | Substantial travel rewards and bonus points (see details below) | Up to 5 points for each $1 spent on specific categories and 1 point per $1 on all other purchases |
| Additional Cards | Free for employees and employee purchases count toward rewards | Free for employees and employee purchases count toward rewards | Free for employees and employee purchases count toward rewards |
| More Information | Ink Cash(SM) Review | Ink(SM) Bold Review | Ink(SM) Classic Review |
Let’s take a closer look at these business credit card options.
Ink Cash(SM) Business
Ink Cash(SM) is ideal for the small business owner that wants to earn cash back from purchases. The card is designed to pay out the highest cash back rewards (5%) for categories of purchases that are common to many small businesses: office supplies, wireless services, landlines and cable services. You can earn 2% cash back on gas and dining purchases but all other net purchases still earn one percent cash rewards. As with many cash back cards, there is a monthly cap on the amount of purchases that can qualify for the 5% reward and the 2% reward (up to $25,000 in net purchases). There is no maximum on the 1% reward.
Ink Cash(SM) also offers a 0% introductory rate offer on balance transfers and purchases for six billing cycles. This can be a real help if you are trying to get a business off the ground. You can find more information about the card and an online application and the official Chase Ink Cash(SM) website.
Ink(SM) Classic
Ink(SM) Classic is designed for those who don’t travel enough to justify the $95 annual fee in the Ink(SM) Bold card (see below), but still want to earn points on each purchase. The card offers 25,000 bonus points after you spend $5,000 in the first 3 months, 5 points for each $1 spent in net purchases for office supplies, wireless services, landlines and cable services on the first $25,000, 2 points for every $1 spent on fuel and lodging and 1 point for each $1 in net purchases spent on all other transactions. The card offers up to 10 points per dollar spent at select brand-name merchants when you shop online through Chase’s Ultimate Rewards Mall. There is not limit on the number of points that can be earned, and points never expire.
The Ink(SM) Classic is a Visa card and carries no annual fee. It offers a 0% introductory rate for 6 billing cycles on balance transfers and purchases. You can find more information about the card and an online application and the official Chase Ink(SM) Classic website.
Ink(SM) Bold with Ultimate Rewards
Ink(SM) Bold with Ultimate Rewards is aimed at owners who spend a lot of time and money on business travel. First, the card offers an opportunity to earn substantial bonus points every year. You can earn 50,000 bonus points after spending $5,000 in the first 3 months.
In addition to these bonus points, you’ll earn 5 points per $1 on the first $50,000 spent annually at office supply stores, on cable and wireless service, and landline communications, earn 2 points per $1 on the first $50,000 spent annually on gas and hotels and 1 point per $1 on everything else. There are no limits to the number of points you can earn with the Ink(SM) Bold card, and the points never expire.
These points are 25% more valuable when travel is booked through the Chase online booking tool. And the points can be transferred at full value to leading airline and hotel loyalty programs. In addition, you get a complimentary airport lounge membership with Priority Pass.
The Ink(SM) Bold card is a charge card, which means it must be paid in full each month. Once paid in full, however, there are no interest charges. The card is a Visa Signature card accepted anywhere that takes Visa. You can find more information about the card and an online application and the official Chase Ink(SM) Bold website.
There are many business credit card options. I carry a cash back business card for my company. Whatever choice you make, whether it’s listed above or not, don’t make the same mistake I did. Keep your business expenses on a separate credit card, and take advantage of the perks offered by these business cards. After all, a start up needs all the help it can get!
Published or updated January 4, 2012.
{ 3 comments… read them below or add one }
I want to start my own business, but don’t have good credit, are there any options for someone like me?
I was reading about getting credit for a business when the owner has bad credit. I read somewhere that when you are a corporation, you and the corporation are two separate entities. Meaning that you should be able to get credit for you business with out your past credit issues being a problem.
I recently gave them a try to replace my American Express Platinum Business Card. What a terrible mistake. They gave me a card with a $1,800 credit limit but did not tell me there was a limit at all. I experienced 2 embarrassing declines before calling. Their customer service is a joke. Don’t waste your time with this card.