the business credit cards for startups
Betsy Wise
By: betsy_wise
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10 Best Business Credit Cards for Startups in 2022

If you’re looking for business credit cards for startups, you’ve landed in the right place.

This post lists which business credit cards for startups are the best. When you finish reading, you’ll also know how to pick, apply and use a credit card to your advantage.

If you need capital to fund a startup, a business loan may be a smarter option, though.

Apply For A Startup Loan!

 

10 Best Business Credit Cards For Startups

These are some of the best business credit cards for new businesses.

Delta SkyMiles Gold Business American Express Card

Delta SkyMiles Gold Business American Express Card

4.5/5 ⭐

Annual Fee: None the first year, $99 after that

Intro APR: None

Regular APR: 15.74% – 24.74%

Credit score needed: 690 – 850

Other benefits and perks:

  • Limited time offer to earn 75,000 bonus points when spending $3,000 in the first 3 months.
  • Receive $100 off on Delta flight after spending $10,000 in a calendar year.
  • Earn 2 miles for each dollar spent on eligible purchases and 1 mile for all other purchases.
  • No foreign transaction fees.

Reviews:

  • Best card for business owners traveling frequently and needing to earn miles rewards for purchases.
  • Doesn’t have as many benefits as other business cards.

Capital One Spark Cash Select

Capital One Spark Cash Select

4/5 ⭐

Annual Fee: None

Intro APR: 0% for 12 months

Regular APR: 15.99% to 23.99% variable

Credit score needed: 700 – 749

Other benefits and perks: 

  • No foreign transaction fees.
  • $0 fraud liability on lost and stolen cards.
  • Unlimited 1.5% cash back on purchases and no limits or category restrictions.
  • Rewards don’t expire.
  • Redeemable cashback rewards regardless of the amount.
  • Free employee cards.
  • Ability to download purchases to accounting software like Quicken, Excel, and QuickBooks.

Reviews:

  • This is one of the best credit cards for small business startups because cardholders enjoy not paying an annual fee and taking advantage of the introductory 0% APR.
  • The unlimited cashback offer and other benefits and perks are a big plus for businesses building and developing revenue streams.

American Express Blue Business Plus Credit CardThe Blue Business Plus Credit Card from American Express

4/5 ⭐

Annual Fee: None

Intro APR: 0% for 12 months

Regular APR: 13.24 to 21.24% variable

Credit score needed: 690 -850

Other benefits and perks: 

  • Get 15,000 Membership Rewards points after spending $3,000 for eligible purchases within the first 3 months. 
  • Earn twice the Membership Rewards points on the first $50,000 in business purchases per year and 1 point per dollar after that. 
  • You can redeem points for gift cards, a statement credit, airfare, and online purchases.

Reviews:

  • This is one of the best startup business credit cards because cardholders enjoy its 0% introductory rate and no annual fee.
  • Unfortunately, the credit score requirement keeps some applicants from qualifying.

Bank of America Business Advantage MasterCard

Bank of America Business Advantage MasterCard

4/5 ⭐

Annual Fee: None

Intro APR: 0% for first nine billing cycles

Regular APR: 12.24% – 22.24% variable

Credit score needed: 740 – 850

Other benefits and perks:

  • Introductory $300 bonus after making purchases totaling $3,000 within the first 90 days as a statement credit.
  • Cashback deposit into Bank of America checking or savings account or as a paper check.
  • 3% cashback in a preferred category and 2% cashback on dining on the first $50,000 in combined categories, and 1% cashback for other purchases.
  • Earn more significant rewards with Preferred Rewards for Business.
  • Roadside assistance.
  • Travel accident insurance.
  • Zero fraud liability protection.

Reviews:

  • Excellent customer service and mobile app ratings, customizable card allowing you to choose bonus categories.
  • The card doesn’t offer as many business benefits compared to other cards.

Discover It Business Card

Discover It Business Card

4/5 ⭐

Annual Fee: None

Intro APR: 0% for 12 months

Regular APR: 12.99% – 20.99%, variable

Credit score needed: 670 – 850

Other benefits and perks:

  • Discover matches the cash you’ve earned at the end of the first year (sign-up bonus).
  • 1.5% unlimited cashback.
  • Free employee cards with spending limits.
  • No foreign transaction fees.
  • Cardholders can redeem cash at any time.

Reviews:

  • Good for businesses that need start-term financing.
  • You can’t choose bonus categories to earn higher cash yields.

American Express Blue Business Cash Card

American Express Blue Business Cash Card

3.5/5 ⭐

Annual Fee: None

Intro APR: 0% for 12 months

Regular APR: 13.24% – 21.24% variable

Credit score needed: 700 – 749

Other benefits and perks: 

  • $250 rewards bonus for making $3,000 in purchases first 3 months.
  • 2% cashback on purchases up to $50,000 per calendar year, then 1%.
  • Car rental loss and damage insurance, extended warranties, travel assistance hotline, rewards when paying vendors, and purchase protection.
  • With “Expanded Buying Power,” you can purchase over your credit limit.

Reviews:

  • The card is good for startups needing 0% introductory APR to get the most bang for the buck.
  • Business-related benefits and rewards help business owners save money.

U.S. Bank Business Triple Cash Rewards World Elite Mastercard

U.S. Bank Business Triple Cash Rewards World Elite Mastercard

3.5/5 ⭐

Annual Fee: None

Intro APR: 0% for 15 billing cycles

Regular APR: 13.99% to 22.99% variable

Credit score needed: 700 -749

Other benefits and perks: 

  • Limited offer to earn $500 cashback when spending $4,500 within the first 150 days after opening an account.
  • 3% cashback at gas stations, office supply stores, cell phone providers, and restaurants on eligible purchases.
  • 1% cashback on all other eligible purchases.
  • Unlimited cashback earnings.
  • Rewards don’t expire.
  • $100 statement credit for FreshBooks or QuickBooks software subscriptions. 

Reviews:

  • Good for businesses with good credit and those that want to save money by earning rewards/bonuses and not paying an annual fee.  

Ink Business Cash Credit Card

Ink Business Cash Credit Card

3.5/5 ⭐

Annual Fee: None

Intro APR: 0% for 12 months

Regular APR: 13.24% to 19.24% variable

Credit score needed:700 – 749

Other benefits and perks: 

  • $750 cashback after spending $7,500 during the first 3 months after opening the account.
  • 5% cashback on the first $25,000 spent at office supply stores and on internet/cable/phone services each year.
  • Then, 2% cashback on $25,000 spent at gas stations and restaurants annually, and 1% cash on other purchases. 
  • Cardholders can redeem rewards for cash back, gift cards, travel, etc., fraud protection, and zero liability for unauthorized charges. 
  • Cardmembers can use Chase Ultimate Rewards to redeem points with no annual fee redeem rewards.

Reviews:

  • High earnings yield for businesses using these types of services.
  • This is on our best credit card for small business startup list because of its no annual fee, no sign-up bonus, and 0% introductory rate, which are money savers.
  • However, the ink business cash credit isn’t advantageous for businesses that spend more than $25,000 in select categories.  

Brex Corporate Card For Startups

Brex Corporate Card for Startups

3.5/5 ⭐

Annual Fee: None

Intro APR: None

Regular APR: None – you pay balance daily and monthly

Credit score needed: 300 – 850

Other benefits and perks:

  • Receive 10,000 points on the first $1,000 spent, another 10,000 points when spending $3,000 in the first 3 months, and 20,000 points when linking your payroll information to your Brex account.
  • Receive 1 point for every dollar you spend and an unlimited reward through Brex’s Exclusive Rewards Program when making Brex Card your only company card.
  • No credit check, no personal guarantee required, no account fees, no interest, no foreign transaction fee, no revenue or SSN required.

Reviews:

  • Best for cardholders with bad credit and no credit history but have consistent revenue to pay off the balance daily or monthly.
  • $50,000 bank balance required for monthly payments.
  • No minimum requirement for daily payments.

Ink Business Unlimited Credit Card

Ink Business Unlimited Credit Card

3/5 ⭐

Annual Fee: None

Intro APR: 0% introductory rate first 12 months

Regular APR: 13.24% – 19.24%

Credit score needed: 690 – 850

Other benefits and perks:

  • $750 cash back bonus after spending $7,500 within the first 3 months.
  • Unlimited 1.5% cashback on all purchases.
  • You can redeem rewards for cash, gift cards, and travel.
  • Auto rental collision damage waiver.
  • Employee cards.
  • Purchase and extended warranty protection.

Reviews:

  • It doesn’t offer bonus categories. Businesses can make larger purchases during the first 12 months without paying interest.
  • Cardholders like being able to earn rewards when paying for everyday business expenses.

*Star rating and reviews for all cards taken from WalletHub on Mar. 2022.

A Great Financing Alternative For Startups

Business credit cards for startups seem like an easy choice until you can’t pay off the balance each month and incur late fees. Not to mention, some credit card companies charge high annual fees and variable interest rates that fluctuate

They may even ask you to provide a personal guarantee should your business fail to pay off the balance, and business credit cards don’t typically offer purchase protection.

Plus, you need to consider that you should only use around 30% of your credit limit to keep a good credit score. So you might not be able to use as much capital as you wanted to.

That’s why business loans for startups are a better alternative.

Camino Financial’s Startup Loan

Camino Financial’s Solopreneur loan provides advantages you can’t get with small business credit cards.

Our minimal requirements help borrowers qualify for financing when turned down by traditional bankers. Namely, we accept SSNs and ITINs, require that you have an active banking account, and generate $1,500 a month in sales. 

Sole proprietors, independent contractors, and other self-employed business owners can apply for loan amounts ranging from $1,500 to $7,500. 

Lastly, you don’t need a previous credit history to apply. 

Get Approved For A Loan Today

Pros And Cons Of Using Startup Business Credit Cards

Business credit cards for startups can be excellent tools, but they’re not always the right option. Here are their advantages and disadvantages. 

Pros

  • The best business credit cards for startups help your business increase its profit margin and improve cash flow.
  • By having an additional source of cash, you can set aside personal funds to set up a fund used exclusively for emergencies. 
  • These cards are easy to obtain without requiring a lot of support documents or financial history.
  • Most cards do not require collateral as security and offer a 0% introductory rate for a specified time.

Cons

  • The spending limit may not be enough to match your monthly budget.
  • You risk damaging your personal credit score if you can’t pay off the credit card balance on time.
  • Paying annual and late fees and interest reduces your business’s profit margin.
  • Variable annual percentage rates can increase at any time.

What Are The Most Common Cardholder Benefits?

  • Purchase, cell phone, fraud, and extended warranty protection for merchandise you purchase within a specific period and personal liability protection if someone attempts to use your card illegally. 
  • Travel rewards may include free baggage checks, upgraded seats on flights, miles points, travel insurance policies, trip cancellation insurance, rental car insurance damage, and discounts at lounges, hotels, and restaurants.
  • Welcome sign-up bonuses can start at $100 and go as high as $750 or more.
  • Initial 0% introductory APR for a specified time
  • They don’t charge annual fees or fees after the first year
  • They offer a higher percentage paid on bonus categories. Also, card issuers may set a limit on how much cash a cardholder can earn or offer cashback on unlimited purchases.
  • Cardholders can choose categories to maximize earnings based on where they shop the most.
  • Some business credit cards for startups allow cardholders to choose how to receive cashback whether as a statement credit, gift card, cash deposit, or other types of reward redemption.
  • Businesses can track expenses and export purchase information to accounting software they already use, such as QuickBooks, Excel, Quicken, and other programs.

How To Pick A Credit Card For Your Business

Use these tips to get the best business credit cards for startups.

Know Your Credit Score

Your credit record is one of the most important factors that the business card issuer will consider when you’re applying for a credit card for a startup business. It will play a role in determining your account’s interest rate and other terms.

If you don’t know your credit score, you can get a free report from each of the three major credit bureaus.

#DidYouKnow
When credit card issuers do a personal credit check, they might do a hard pull (which hurts your credit) or a soft pull (which doesn’t hurt your credit).

Review Minimum Requirements

Preconditions may include a personal guarantee, minimum credit score, annual fees, and paying off balances each month.

Consider Benefits

Advantages may include 0% intro APR, no foreign transaction fees, travel rewards, purchase protection, no annual fees, cashback on purchases, new cardholder offers, bonus rewards, and fraud protection.

#CaminoTip
You should also choose a card that helps you build business credit.

Get A Card That Matches Your Business Expenditures

Cards offer discounts based on categorized spending. Examples include deals on gas, restaurants, flights, shipping, phone services, etc.

Coordinate Spending

Startups can take advantage of 0% introductory rates by purchasing equipment, office furniture, or making other purchases and paying off the balance without paying interest.

Take Advantage Of Additional Benefits

Business credit cards may include extended coverage and insurance on certain purchases or travel and auto rental insurance. Other perks include itemized receipts and syncing purchases with specific accounting software.

#CaminoTip
There’s no best credit card for your startup business, the choice depends on your needs and the requirements of each one.

What Do I Need To Apply For A Business Credit Card? Requirements

When applying for business credit cards for startups, you should expect to provide the following information.

  • Business legal name
  • Your legal name
  • Contact information. Personal and business mailing addresses and phone numbers which for sole proprietors may be a home address
  • Business bank account information
  • Business structure. Typical entity types include sole proprietorship, partnership, limited liability corporation, and corporation.
  • Industry type
  • Number of years in business
  • Taxpayer ID number: Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number(ITIN) if accepted
  • Annual business revenue
  • Other income
  • Monthly business expenses
  • Business and personal credit history. The credit card company will run a credit check using your SSN or EIN if you have one.
  • Personal guarantee. Credit card companies may or may not require collateral. 
Camino Financial loans have minimal requirements

Other Approval Rules Credit Card Issuers Impose On Applicants

Each credit card issuer may limit its risk by placing guidelines on its approval standards. A credit card issuer may set limits on how many total cards you can have at one time to include both personal and business credit cards. 

Other card issuers may reject applicants for a new card depending on how many they’ve opened in a specific time frame or put an application on hold when you have several pending credit requests. 

A credit card lender may restrict welcome bonuses to “once per lifetime” to prevent applicants from opening and closing accounts just to earn a reward or let you open as many accounts as you prefer with them. 

How To Get A Business Credit Card For A New Business: Steps To Apply

Follow these steps when applying for business credit cards for startups.

  1. Be prepared. Know what your personal and business credit scores are before applying. You can get a free annual report from any of the 3 major credit bureaus.
  2. Decide on which credit card to apply for. You must research several business credit cards for startups so you can apply for the one that’s right for you and provides the most benefits.
  3. Gather the information you need. Use the list above detailing what you need to apply for business credit cards for startups. Have everything in front of you before you apply. 
  4. Complete the application. Complete every line and section of the application. Review the information thoroughly before you submit it.
  5. Wait to hear from the credit card company. Once you apply, the credit card company may provide an approval decision immediately or contact you later. 
  6. Receive the card and activate it. Once approved, you should receive your business credit card within 7 to 14 days. Activate the card when you receive it to start making purchases and take advantage of card rewards. 

Tips To Make The Most From A Business Credit Card

Using a business credit card wisely reaps the highest rewards.

Take Advantage Of Rewards

Business credit cards for startups may offer:

  • cashback on purchases
  • free employee cards
  • travel bonuses
  • no foreign transaction fees
  • a 0% introductory rate
  • and other advantages when making purchases

Get every benefit that’s coming to you to increase business profit.

Pay Off The Balance Each Month

Making minimum payments indicates to credit bureaus that you may have cash flow problems. You establish a favorable credit history by paying the balance in full each month and aren’t charged interest on the unpaid amount.

Keep Business And Personal Expenses Separate

Established businesses know it’s a bad idea to commingle personal and business expenses. The reason it’s called a business credit card is that you only use it to make business purchases.

#DidYouKnow
Because a business card separates personal and business expenses, you simplify accounting and maximize legitimate tax deductions.

Don’t Max Out Your Spending Limit

You should only spend 30% of your available credit at most. For example, if your card limit is $1,000, then spend about $300 each month to keep your credit utilization at an acceptable level.

Create Individual Spending Limits

If you permit employees to use your business credit card, set an amount for each employee that doesn’t exceed 30% of your card’s total credit limit.

Short Term Business Loans vs. Credit Cards 

Understand The Fees Credit Cards Charge

You can keep money in your wallet by understanding credit card fees and choosing a credit card that doesn’t charge certain fees.

For example, you will save money as long as the business credit cards for startups don’t charge an annual fee. Additionally, the same applies when a card issuer doesn’t charge foreign transaction fees which can be as much as 3% for every international purchase. 

Some credit card companies offer free employee cards, although it’s possible to pay $45 to $300 for each employee card issued. 

You will only pay interest on a balance carried forward and no interest as long as you pay off your account each billing period.

With a 0% introductory APR, you won’t pay interest during that period, but you will have to make the minimum payment each month.

Pay special attention to when the introductory period ends so you pay the balance in full, or you’ll have to pay the applicable variable APR.

Other standard credit card fees include late payment, cash advance, balance transfer, returned payment, and over-the-limit fees.

Before you apply for business credit cards for startups, make sure you understand what fees the company charges, which they should list in their terms and conditions agreement.

Is A Startup Business Credit Card Right For Me?

Getting help to pay startup expenses keeps you from using personal funds to pay for purchases. Even better, if you haven’t established business credit, a startup business credit card can help you do that when you use it responsibly.  

These credit cards can help reduce your business’s cash flow and ultimately increase your business’s overall profit by taking advantage of cashback rewards on business-related expenses and sign-up bonuses.

But the truth is that business credit cards for startups are not the only financial products at your disposal.

Explore other types of short-term financing if you have poor credit and can qualify for a fixed, lower rate by getting a small business loan. 

Get a business credit card when:

  • You want to pay for regular smaller expenses
  • You will take full advantage of bonus rewards

Get another financial product when:

  • You want to make a substantial purchase
  • You want a financial product with lower rates

#DidYouKnow
A startup business loan could be an incredible option for you.

Your Financing Decision Just Got Easier

The best credit card for a small business startup might seem like a quick way to provide working capital to establish and launch your business. However, they may fail to provide sufficient cash flow or build a credit history in the long term.

A small business loan is a smarter option providing more significant benefits to businesses just getting started.

A Camino Financial startup loan could be exactly what you’re looking for. Not only do we provide fast funding, but throughout the loan process, our motto “No Business Left Behind” motivates us to help clients achieve their business goals.

We also offer educational and financial resources to our members.

We invite you to apply today, discover how we’re different, and obtain the funds you need so your business excels. 

Apply now!

 

FAQs

What’s the best credit card for startup businesses?

There’s no one-size-fits-all answer.

The best business credit card is the one that matches your bonus and credit limit needs and has requirements you can meet.

Can startups get business credit cards?

If the applicant meets the credit card company’s minimum requirements, like credit history, they should get a business credit card.

Can you get a business credit card if you have an LLC?

The structure of your business shouldn’t affect your credit card application. In other words, you can get business credit cards for LLC startups.

Keep in mind that only authorized officers of LLCs can apply for a business credit when they’re legally permitted to sign the credit card application on behalf of the company. The LLCs operating agreement lists the officers.

How do small businesses establish credit?

Here are some ways to build business credit and personal credit:

  • Having a business bank account
  • Setting up a business line of credit with vendors and supplies
  • Paying bills on time
  • Making timely loan payments
  • Paying off a business credit card balance each month
  • Not spending more than 30% of their credit limit

What is the easiest business credit card to get?

Applicants with good credit and meet other minimum requirements should qualify for the American Express Blue Business Cash card.

What credit score do you need for a business credit card?

Business credit cards usually require a good credit score of 650 or higher to get the best interest rates.

Can I get a business credit card with bad credit?

It’s possible to have a bad credit score and get approved; however, credit card companies charge the highest rates to applicants considered the riskiest.

What are some business credit cards for startups with bad credit?

If you have a bad credit score, you could consider these cards:

  • Wells Fargo Business Secured Credit Card
  • OpenSky Secured Visa Credit Card
  • Credit One Bank Platinum Visa for Rebuilding Credit
  • Capital One Platinum Secured Credit Card

As you’ll notice, if you have bad credit, unsecured business credit cards for startups are your best alternative.

Can I use a business credit card for personal expenses?

You could, but it’s not a good idea since you’re establishing credit for your business. When you mix personal and business expenses, lenders won’t see you as a business professional.

Plus, mixing expenses makes it harder to sort out which purchases are your business’s.

Do I need an EIN to get a small business credit card?

Not really.

Your business can be a sole proprietorship, which operates using the owner’s SSN or ITIN.

Some sole proprietors get an Employer Identification Number, so their business appears more professional among suppliers and clients, but you don’t need one to apply for a business credit card.

What are the best business credit cards for startups with fair credit?

These are some of the best cards you can access with fair credit:

  • Capital One Spark Classic for Business
  • OpenSky Secured Visa Credit Card
  • Wells Fargo Business Secured Credit Card
  • Business Edition Secured Visa Credit Card

Why use a business credit card for my new business instead of my personal credit card?

Separating your business and personal expenses enables you to track your business expenses by setting up spending categories. Then, you can take legitimate tax deductions on your tax return.

Plus, business credit cards for startups establish credit specifically for your business to help you qualify for future loans.

 

Check if you
qualify for a loan

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