Best Business Credit Cards for Startups & New Business

Top 5 Best Business Credit Cards for Startups

Before we tell you about the top credit cards for businesses and have you sign up for one, let us inform you about what a Paydex score is.

Your typical adult will recognize what a Fico Score is and what Equifax and Experian are. The only thing is that these do not have much to do with your business credit. Personal credit and business credit are two separate systems. In the business area, your business credit is known as your Paydex Score.

To get a Paydex score, you must first register a D-U-N-S number. A D-U-N-S number will confirm your business with Dun & Bradstreet, a company that provides commercial information, analytics, and business perceptions. 

Which credit cards are best for startup businesses? 

1. American Express Blue Business Card

   This one is designed for businesses that do not have a predictable income. It allows you to overspend if you need to. It is also great since it has no annual fee! You can also earn membership rewards depending on what you spend. There is 2% cashback given back to you for spending $50k or more. Your credit score for this card should be anywhere from 690-850. It does not hurt to apply; you can get approved in less than a minute.
   

2. Capital One Spark for Business

   This is recommended if your business spends over $50K per year. There is an annual fee of $95 per year. There is a convenient feature where you can connect to QuickBooks if you must link to the accounting software. If you need to pay clients and use www.Bill.com, this card can be linked to that.  If you can spend $4,500 in the first three months, which is not hard to do, you earn a cash bonus of $500!

3. Chase Ink Business Unlimited

   This unsecured business credit card will have an annual fee of $95, but the features and awards are worth it. If you spend $5K in the first three months, you will earn $800 back in cash or earn $1000 to be used for travel expenses! There are no foreign transaction fees on this card. You can earn one point for each dollar spent on anything needed for your business. If you spend money on social media ads for marketing purposes, this card will give you three points for each dollar spent on social media, search engine advertisements, shipping, and traveling, topped at $150K.  If you have superb credit, you will not have to pay the annual fee. This a great business credit card if you own an online business where you ship out products. If you often travel for business on social media marketing, this card would be an excellent choice.

4. American Express Simply Cash

   The perks on this card are that there is no annual fee for the first fifteen months and a zero percent A.P.R. You can earn 5% cashback on your office supplies and business phones. You will receive an unlimited 1% cashback! There is also 3% cashback on your choice of either airfare, restaurants, shipping, hardware, computer software, marketing, car rentals, and even gasoline! You can never go wrong on getting money for gas unless you own a TESLA, of course! This is a great card to get started with if you want to be part of the AMEX life!

5. Wells Fargo Business Credit Card

   This is an outstanding choice for new business owners who want to boost their business credit. The card has a blend of nurturing your credit and getting rewards. You can opt to earn a point for every $1 spent on purchases. In addition, you can receive $1.5% cashback on purchases if you sign up for the Wells Fargo Business Card Rewards Program.

F.A.Q.S.

What are the benefits of a business credit card? 

• There are plenty! One is that you get to improve your business credit rating.  
• Anything acquired with the business credit card account will allow you to earn points, miles, or rewards. With these points, or mileage you’re able to redeem it for gift cards, traveling, and even statement credits. 
• If you are low on dough, a business card allows you to make the purchases necessary for your business. 
• Something looks fishy? You can dispute unseemly transactions! 
• Many cards categorize your expenses. For example, restaurant equipment, employee payroll, marketing, etc. This can be super beneficial in case of a tax audit in the future. 
• You can separate the business expenses from your expenses. This protects your assets by not mixing them up with your business! 

Do I need a lot of revenue for a business card? 

This is one of the biggest misconceptions out there. There is no minimum revenue for a business credit card. There is no down payment either. A few scammers are out there giving out “business loans” that will ask you for a down payment. If you are being asked for a down payment for a business loan, run for the hills! It is illegal to ask for a down payment on a loan! A good part about business credit cards is that they are easier to attain than a business loan. 

Any Business Credit Card Startup with Bad Personal Credit? 

If you have bad personal credit, don’t feel too bad. Life happens! We already explained how personal credit and business credit are two different entities. Focus on your business credit for now. First and foremost, you must find a cool name for your business. Attaining an Employer Identification Number (E.I.N.) will be helpful. If you do not know what an E.I.N. is, we will explain more about it further. When you do this, your business becomes its entity. It is like two distinct people! So yes, you can get hold of an unsecured business credit card for a startup with bad credit!  

Can I get a business credit card for a new business without a personal guarantee?

Most business credit cards for startups do require a personal guarantee. Credit cards do not require a personal guarantee, but they do consider your business cash flow. For example, the Brex Corporate Card will require you to have a sum of $50k or more in your bank account. 

How do I apply? 

It is basically the same method as applying for a personal credit card. You can apply as a sole proprietor, but it is best to attain an employer identification number (E.I.N.). An E.I.N. is a nine-digit number given to you by the I.R.S., which can be used for filing your taxes. It is kind of like a social security number, but for your business!

You can attain an E.I.N. with the assistance of a certified tax professional or accountant. If your business has one or more employees, you will have to get an E.I.N. Even with zero employees; some exceptional situations may require you to get an E.I.N. For example, a partnership, L.L.C., corporations will entail an E.I.N. This “business social security number,” like we like to call it, is necessitated when applying for a business loan. 

Being rejected for a startup business credit card isn’t always fun, but if you follow these tips and build your Paydex score, you should not have a problem achieving your goals.

Furthermore, bettering your Paydex score is sure to save you money in the long run. Good luck!