NerdWallet’s editorial picks: Best credit cards for startups and new businesses
Before applying, confirm details on the issuer’s website.
Ink Business Unlimited® Credit Card
Best for: Best overall cash-back card for startups
5
Ink Business Unlimited® Credit Card
is a great choice for virtually every business owner, including new ones. It earns a simple, flat
1.5
% cash-back rate on every purchase, with no limit on how much you can earn. The sign-up bonus is outstanding for a cash-back card, particularly one with no annual fee:
Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.
There’s even an intro APR period for purchases. Read NerdWallet’s review of the
Ink Business Unlimited® Credit Card
.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
Best for: 0% intro APR
5
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
stands out for its 0% APR intro period:
0% intro APR for 15 billing cycles on purchases and balance transfers, and then the ongoing APR of 19.24%-28.24% Variable APR
. That’s a long runway for a new business owner. And on an ongoing basis, it’s a solid cash-back card:
Earn 3% cash back on eligible purchases at gas stations, office supply stores, cell phone service providers and restaurants. Earn 1% cash back on all other eligible net purchases
. Plus, the card offers a competitive welcome bonus and charges a $
0
annual fee. Read NerdWallet’s review of the
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
.
Ink Business Cash® Credit Card
Best for: Setting up an office
5
Ink Business Cash® Credit Card
offers 5% cash back on up to $25,000 spent at office supply stores and on internet, cable and phone bills. If you’re setting up an office for your new business, that could result in some serious rewards. (If not, then look elsewhere.) There’s also an introductory APR for purchases and an excellent sign-up bonus for a no-annual-fee cash-back card:
Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.
Read NerdWallet’s review of the
Ink Business Cash® Credit Card
.
American Express® Business Gold Card
Best for: Easy-to-manage bonus categories
5
American Express® Business Gold Card
has six bonus categories: advertising, gas stations, restaurants, software, transit and cell phone service. Whichever are your top two categories each month, that’s the spending you’ll earn bonus rewards on. That can translate into outstanding rewards, as long as your business spends money in those categories. If it doesn’t, the steep annual fee ($
375
) probably isn’t worth it. Only purchases made in the U.S. qualify for bonus categories. Read NerdWallet’s review of the
American Express® Business Gold Card
.
Capital One Spark Cash Plus
Best for: Charge card for startups
5
Capital One Spark Cash Plus
is an excellent option for business operators whose expenses don’t fall into the bonus categories on other business credit cards. You get a high, flat rewards rate —
2
% on every purchase — with no limit to how much you can earn. And you can earn a $
1200
welcome bonus if you hit certain spending requirements. Just make sure that you have enough revenue or outside investment to pay off your spending in full each month, as this is a charge card that doesn’t let you revolve a balance. (See rates and fees.) Read NerdWallet’s review of the
Capital One Spark Cash Plus
.
U.S. Bank Business Altitude™ Connect World Elite Mastercard®
Best for: Travel card for startups
5
U.S. Bank Business Altitude™ Connect World Elite Mastercard®
delivers impressive rewards on travel, no matter where you book it:
Earn 5X points on prepaid hotels and car rentals booked directly in the Rewards Center. Earn 4X points on travel, gas and EV charging stations on the first $150,000 in combined annual spend. Earn 2X points on dining, takeout, restaurant delivery and cell service providers. Earn 1X points on all other eligible spend.
There’s also a solid welcome offer and no annual fee for the first year ($
95
after that). Read NerdWallet’s review of the
U.S. Bank Business Altitude™ Connect World Elite Mastercard®
.
The American Express Blue Business Cash™ Card
Best for: New small businesses (spending less than $50,000 per year)
4.9
The American Express Blue Business Cash™ Card
boasts one of the better introductory APR offers among business credit cards:
0% intro APR on Purchases for 12 months, and then the ongoing APR of 18.49%-26.49% Variable APR
. Beyond that, you earn a strong
1%-2%
cash back. But that higher rate is reserved for your first $50,000 in spending — that’s why it’s a good choice for new small business owners who don’t expect to spend much more than that. There’s also a $
0
annual fee. Terms apply. Read NerdWallet’s review of
The American Express Blue Business Cash™ Card
.
Ink Business Preferred® Credit Card
Best for: Sign-up bonus
4.9
Ink Business Preferred® Credit Card
starts you off with one of the biggest sign-up bonuses of any credit card anywhere:
Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That’s $1,000 cash back or $1,250 toward travel when redeemed through Chase Travel℠.
You also get bonus rewards on travel expenses and common business spending categories, like advertising, shipping and internet, cable and phone service. Points are worth 25% more when redeemed for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. Read NerdWallet’s review of the
Ink Business Preferred® Credit Card
.
The Blue Business® Plus Credit Card from American Express
Best for: AmEx Membership Rewards
4.6
Capital on Tap Business Credit Card
Best for: Incorporated startups with fair credit
3.9
Capital on Tap Business Credit Card
issued by WebBank offers
1.5
% cash back on all purchases, no annual fee and the potential for a low APR. Two important notes, however: This card is not available to sole proprietors, which excludes the majority of businesses, and you’ll need at least six months of business history to qualify. Read NerdWallet’s review of the
Capital on Tap Business Credit Card
.
Best for: Corporate card with no personal guarantee
3.7
Ramp Card
does not require a credit check or personal guarantee — though you’ll need a registered business structure and a healthy bank balance (at least $75,000) to qualify. Plus, you’ll have to be able to pay off your balance in full every month. The corporate card offers unlimited
1.5%
cash-back rewards with no annual fee, plus access to expense management software, which lets you set card-level spending controls, collect receipts and track expenses. Read NerdWallet’s review of the
Ramp Card
.
Best for: Startups with venture funding
3.1
Brex Card
and its associated spend management platform are designed for well-capitalized startups — new businesses will likely need an equity investment or a referral from an existing customer to qualify, plus at least $50,000 in cash. But if you qualify, the
Brex Card
earns rewards and doesn’t require a personal guarantee. Like Ramp, the corporate card it’s linked to sophisticated spend and expense management software that may help startup founders keep a closer eye on their finances. Users can earn
1x-7x
cash back on their spending. Read NerdWallet’s review of the
Brex Card
.
Capital One® Spark® Classic for Business
Best for: Sole proprietors with fair credit
3
Capital One® Spark® Classic for Business
isn’t going to wow anyone; there’s no sign-up bonus and the APR is high. What makes this card valuable is that it’s available to business operators with fair credit, who don’t have a lot of options in business credit cards.
Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
Best for: New business owners with bad credit
This card has not been rated by NerdWallet.
This is one of a handful of secured credit cards that caters to businesses. You’ll have to put down a security deposit of at least $1,000, and your available credit line will be equal to your deposit. But using the card and making on-time payments can help build your business credit over time — plus, you’ll earn 1.5% cash back rewards. Bank of America automatically reviews secured accounts and you can upgrade to an unsecured card if your credit history improves.
How to choose the best card for your new business
Follow these steps to find the right business credit card for your startup.
-
Weigh the annual fee against potential rewards. Some credit cards charge annual fees, but those cards also tend to offer more generous rewards on travel or other types of spending. If the rewards outweigh that cost, paying a fee may be worth it (plus, the annual fee may be tax deductible). But you can also choose from a number of business credit cards with no annual fee so your new business has one less expense.
-
Look for a long intro period. A business credit card with a 0% APR introductory offer can help you pay off startup expenses over time — 12 or more billing cycles, in some cases — without owing interest on the balance you roll over.
-
Consider a charge card. Business charge cards typically have no preset spending limit, making them a good option for startups with big expenses and cash on hand. With a charge card, you’ll typically have to pay off your balance in full every month, though some — the Ink Business Premier® Credit Card, for example — will let you finance certain purchases. So only opt for a charge card if you’re confident your cash flow can reliably keep pace with your expenses.
-
Find rewards that match your spending. Some cash-back business credit cards offer a flat rewards rate on all your company’s spending, regardless of what you’re buying. Others offer higher rewards rates in categories like travel or gas — or on spending with specific companies, like Amazon or Lowe’s. Choose a card that’s likely to align with your purchasing patterns.
🤓 Nerdy Tip
Many business credit cards let you combine rewards from the same issuer — including points earned on personal cards — and potentially increase the redemption value. For example, transferring points from the
Chase Freedom Unlimited®
to an
Ink Business Preferred® Credit Card
increases their value by 25%. Each issuer has its own rules. Learn about yours in NerdWallet’s guide to combining credit card points.
Can new businesses get business credit cards?
Why should startups use business credit cards?
But if you’re going to finance a new business with credit, there are some distinct advantages to doing so with a business credit card.
The biggest one is that it keeps your business and personal finances separate. All business owners, even freelancers and sole proprietors, should avoid using the same credit card for personal and business spending. You could choose a personal credit card and dedicate it solely to business expenses, or you could start using a business credit card right away.
But that’s where another key difference comes into play: personal cards affect your personal credit score regardless of how you use them. If you’re using your card a lot to front business costs (and potentially carrying debt as a result), that kind of utilization can weigh down your credit score. And a lower score could affect aspects of your life beyond your business, increasing your costs for things like housing, cars and insurance.
🤓 Nerdy Tip
It’s especially important for LLC owners to keep their business and personal finances separate. If you mix the two, your creditors could later argue that your LLC and personal finances weren’t really separate, which means you could lose the protection an LLC offers to your personal assets. Read our picks for the best business credit cards for LLCs.
Other business card benefits for startups
-
Access to financing. New businesses generally don’t qualify for business loans due to their lack of a track record. Business credit cards offer startup funding that can help you cover costs while you build revenue. Credit cards are one of the most expensive forms of financing due to their high interest rates, though, so look for a 0% intro APR period if you want to spread out big expenses.
-
Business credit history. In general, card issuers report the use of a business credit card (and the payment of your bill — whether on time or late) to business credit bureaus, helping to create a credit profile specific to your business. Your business credit score can help you qualify for other types of financing in the future.
-
Employee cards. Most business credit cards issue employee cards for free. Usually, you can control when and where employees use those cards — which can be a good way to empower your employees to make business purchases without putting your cash at risk.
-
Expense management software. Some corporate cards, like Ramp and Brex, come with built-in expense management software that can help you set budgets for specific projects, keep track of expenses, collect receipts and create unlimited virtual cards for your team.
-
Rewards for spending. New businesses often face a number of startup costs. A business credit card can earn you cash back or points for those purchases you have to make anyway. Some cards even offer bonus categories with bigger rewards on expenses like office supplies or advertising that you may need to invest in to get up and running.
-
Credit card perks. In addition to rewards, many credit cards come with perks like rental car insurance and discounts at select vendors.
How do new small businesses establish credit?
Registering your business, getting an EIN and applying for an identification number with business credit firm Dun & Bradstreet can also help you build business credit.
The American Express Blue Business Cash™ Card
, see this page.
American Express® Business Gold Card
, see this page.
The information related to the Capital One® Spark® Classic for Business has been collected by NerdWallet and has not been reviewed or provided by the issuer or provider of this product or service.
