Small business credit cards have become popular over the past few years. These cards are also preferred by entrepreneurs who don’t qualify for traditional business loans.
Credit cards are useful when used wisely. Thus, you have to avoid making purchases the business can’t afford.
Compared to consumer cards, small business credit cards have higher spending limits. They also have a lot more rewards programs. Some even have additional benefits like attractive balance transfer promotions and low APRs. Some of the business credit cards come with annual fees. However, you need to have a good credit history to qualify.
Qualifying for a business credit card is unlike the qualifications required for consumer credit cards. Some laid-back issuers will only require you to submit your social security number. They’ll also expect you to confirm in writing that the card will only be used for business purposes.
Other issuers are a lot stricter. They’ll expect:
- Financial statements
- The federal employer identification number
- Evidence of incorporation
Failure to prove that you own an incorporated business with legitimate cash flow is a reason for disqualification.
It’s important to ensure you repair your credit to increase your credit score. That’s because it qualifies you for lower interest rates and better terms. You must do this whether you need a loan for personal reasons or to grow your business.
The issue with credit repair is that it’s like improving your professional network. Entrepreneurs start thinking about it only when it matters. But it’s crucial to know that, that’s not a situation that can get corrected overnight. So it’s time you start to repair your credit like the pros. Yes, do it now before you start needing it.
The best thing about this is that it’s not that difficult to repair your credit score. You can easily follow the following process to successfully repair it:
- Review your credit reports
- Dispute negative marks
- Dispute incorrect late payment entries
- Politely request help from creditors in case of any negative comments on your credit report
- Increase credit limits
- Open another credit card account to increase your credit card utilization ratio
- Pay outstanding balances
- Pay off high-interest accounts
- Ride some great credit coattails
- Keep your ‘old’ credit cards
- Pay every bill on time
Small Business Credit Cards
Entrepreneurs know that every penny counts when making purchases. The use of credit cards is a gratifying strategy for businesses. The cards come with many benefits including travel protections, cashbacks, and loyalty points.
To get the best credit card, you need to determine which of the benefits you value most. In this article, we discuss some of the small business credit cards. I believe you’ll find some of them suitable for your company.
1. Ink Business Unlimited Credit Card
This is a business reward card that allows entrepreneurs to earn unlimited 1.5% cashback with each purchase. An entrepreneur gets to earn a bonus of $750 cash back when they spend $7,500 on purchases in the first 3 months.
This card maximizes cashback by way of ultimate rewards points. The reward points can get redeemed for gift cards, cash, and travel purchase.
The Ink Business Unlimited Credit Card has no annual fee. This makes it a good choice for entrepreneurs who’d have a hard time earning sufficient rewards to offset an annual levy.
With this business credit card, you will not get charged for employee cards. This is beneficial for entrepreneurs who plan to add unauthorized users to their accounts.
2. Ink Business Preferred Credit Card
This card is one of the top picks for small businesses. This card has programs that reward specific categories like digital advertising and travel.
The card comes with a bonus and benefits expected from premium credit cards, which by the way, cost a lot more. There is also no waiver on its $95 annual fee in the first year.
With this card, you get to earn 3 points for every $1 you spend on telecommunication purchases. You also earn 1 point for every $1 spent on other purchases above the $150,000 spending limit.
Cardholders can redeem accumulated points for a range of goods and services. The alternatives include general merchandise, travel, gift cards, and much more.
3. Blue Business Cash Card
This card provides a profitable 2% cashback rate for the first $50,000 in spending every year. Purchases over $50,000 will earn you unlimited 1% cashback.
This popular credit card with no annual fee works well as a general-purpose credit card. It has a 0.0% introductory APR on purchases for one year from the day of the account opening. Thereafter, the APR will have a variable rate of between 13.24% – 19.24% depending on your creditworthiness.
This card allows you to enjoy flexible buying power whenever the business needs it. Due to that flexibility, you can spend beyond your credit limit to get work done.
The card doesn’t require you to pay an annual fee, making it beneficial for budget-conscious entrepreneurs. New card members earn a $250 statement credit once they make purchases worth $3,000 during the first 3 months.
4. The Business Platinum Card
The business platinum card’s annual fee currently stands at $695. This is unlike several other small business credit cards with no annual fee charged. Entrepreneurs that are not well-established will find this annual fee expensive. But, if you can take advantage of the benefits, you’ll realize that it’s a worthy investment.
Cardholders who can spend $15,000 in the first three months get to earn 120,000 membership reward points. Once a cardholder meets the minimum spend threshold, they get to have at least 135,000 membership rewards points. With a value of two cents per point, that’s roughly $2,700.
The card also allows you to transfer your membership reward points to several travel partners. This is great especially for entrepreneurs who travel frequently.
5. Spark Cash Plus
This small business credit card has an excellent early spend bonus. It comes with a generous rewards program. It has an unlimited spending limit that’s determined by your spending history and credit score.
All purchases on this card will earn you unlimited 2% cashback, with no restrictions. When a cardholder racks up some cash back, they can redeem it in any amount. An entrepreneur can earn up to a $200 cash bonus for spending at least $200,000 a year.
The spark cash plus has an annual fee of $150. It doesn’t come with any balance transfer fees or foreign transaction fees. Neither will you get charged for extra employee cards.
Cardholders are provided with summaries of their periodic spending. The summaries contain detailed, categorized, and itemized looks at the company’s spending. That includes your employee’s spending if applicable.
The sharing economy has changed what it means to be in business. Being an entrepreneur is now as simple as renting out your extra bedroom for short stays on Airbnb. It could also be setting up a personal website promoting your freelance skills.
You no longer need to have employees or a physical office. It’s because of that, that solopreneurs don’t realize they need business credit cards.
If you’re not in business currently but plan to do so in the future, It shouldn’t be as difficult as you think. Just ensure you have a reliable small business credit card from a reputable company.