Which Card Is Best For My Business
The right card for your business will depend largely on how you define your business and how you believe the credit card will serve you in making work-related purchases. Do you travel often for your business? Do you take clients out for frequent meals? Do you buy products in bulk from specific companies that may participate in rewards programs?
These are the kinds of routine purchases to take into account. What will you use the credit card for most often and how large will your average spending sums add up to? The answers to all these questions will help you find the best business card for your business. Here are some cards that might fit your businessâ needs.
How To Choose The Best Business Credit Card
You should always choose a credit card that best suits yours and your businesss needs and wants. Consider the following factors when picking a business credit card:
- Annual fee. Many business credit cards have hefty annual fees attached. There are plenty with no annual fee too, although these tend to have fewer perks.
- This is the interest rate charged on outstanding credit card debt. Remember, the advertised APR only has to be offered to 51% of applicants, so you may be offered a higher rate if youre deemed a particularly risky applicant.
- 0% interest deals. Some business credit cards will offer an introductory 0% interest rate deal on purchases, balance transfers or both. This opportunity to borrow money without paying interest could be particularly useful to those who have just started a business. But, make sure to pay off your balance before the 0% interest deal ends, as the APR will shoot up thereafter.
- Rewards. Many business credit cards include cashback deals as a way to entice new customers. Its also incredibly common for business credit cards to offer air miles or retail reward points as a perk for spending. If you travel overseas a lot for business, these cards might be particularly beneficial.
- Foreign transaction fees. If a lot of your business spending takes place overseas, a card that charges no foreign loading fees could appeal.
Which Rewards Are Important To You
You should also take into consideration the kind of spending you make. For example, if you spend a lot of money on travel for business, then The Business Platinum Card® from American Express might be the best card for you, as it offers 5 points per dollar spent on flights and prepaid hotels booked with Amex Travel. In other words, the more you spend on travel, the more youll be rewarded.
Its also a good idea to check out possible reward expirations, minimum redemption amounts and earning limits for cards before making your final decision.
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Business Credit Card Requirements
So, now that we have a better sense of why you should get a business credit card, lets continue by discussing the requirements involved to actually apply for a business credit card. After all, if youre aware of the business credit card requirements and prepare them before you start an application, youll save yourself in both time and hassle.
First, if youre wondering what types of businesses are eligible for business credit cards, the answer is many types. Essentially, if you sell items or services for a profitâand have a reason for needing a business credit card, such as purchasing materialsâyou have a shot at qualifying for a business credit card.
This being said, then, lets break down 11 of the most common business credit card requirements youll need to know to complete an application. As you might imagine, some of these business credit card requirements are more straightforward than others, and the creditor will weigh some of these factors more heavily than others to determine your eligibility. Nevertheless, depending on the specific card and application process, youll likely need some, if not all of the following:
Check Your Personal Credit Score
Generally, you will need to personally guarantee a business credit card, and credit card companies will evaluate your loan application based in part on your personal credit history.
If your credit card score needs buffing up, spend three to six months working on lowering your the percentage of your available credit you use and making sure you pay your bills like clockwork. Itll make it easier to get a business credit card.
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Delta Skymiles Reserve Business American Express Card: Best For Delta Air Lines Flyers
If Delta Air Lines is your preferred carrier, the Delta SkyMiles Reserve Business American Express Card can significantly enhance your travel experience both on the ground and when flying the airline.
Youll be treated to elite-like benefits such as complimentary seat upgrades when available, access to Delta Sky Clubs when flying the airline and more. If you are trying to earn Delta Medallion elite status, this card provides you with the opportunity to earn valuable Medallion Qualification Miles through spending and help you move up the rungs of the elite-status ladder. Other key benefits include your first checked bag free, priority boarding and savings on in-flight purchases. and priority boarding.
- Lounge benefits when flying Delta the same day access to the Delta Sky Club and Amex Centurion lounges.
- Annual round-trip companion certificate good for travel in Main Cabin, Comfort+ or even first class each year upon card renewal. This benefit alone can easily exceed the cost of the cards the $550 annual fee .
- This card earns 15,000 Medallion Qualification Miles when you spend $30,000 on purchases in a calendar year, up to four times per year.
The Business Credit Card Application Process
When you apply for a small business credit card, your application will go through several stages.
The Application Stage. Once youve gathered the required information, the business credit card application process becomes much easier. You can apply in person through your preferred credit card issuers local branch office or fill out an online application.
The questions will revolve around your business structure, revenue, and personal information during the application process. Note that if another person has an ownership of 25 percent or more in your business, youll be required to provide their information too.
The verification stage. Once youve submitted your application, expect the provider to check your personal credit with one or more of the three major consumer credit bureaus, Equifax, Experian, and TransUnion, to obtain your credit score, payment, and debt history. They will also look at your reported income to make sure you can afford a credit card.
The decision stage. Your credit history and the submitted information will be analyzed to see if it fits the credit card issuers eligibility requirements. If your credit score isnt excellent, then the card you qualify for may have lower perks and higher interest rates. Cards with higher perks have stricter standards.
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Choose A Card That Suits Your Needs
The business credit card type that best suits your business needs will often align with how you plan to make repayments.
- Interest-free period this type of business credit card gives you a period of time where you pay no interest on purchases. It can help with your short-term cash flow if you have a gap between when your bills are due and when you receive payment from customers.
- Low rate this card type may suit if you may need to carry a balance over from month to month and want to minimise the amount of interest paid.
- Awards these cards can be suitable should you choose to pay your total balance in full each month and want to earn rewards for using your card. They usually have higher annual fees than other card types.
All CommBank business credit cards offer up to 55 days interest free on purchases, except the Business Low Rate card. The CommBank Business Credit Card selector tool can help you choose a card.
Capital One Spark Cash Plus: Best For Unlimited Business Cash Back
The Spark Cash Plus is a simple yet rewarding business card option. Youll earn 2% cash-back rewards on all your purchases, guaranteeing that youre earning a solid return no matter the purchase. As long as you keep your account open, your rewards never expire. You can also redeem your cash back in any increment, helping you keep your operating expenses low and adding more value year after year.
- The Capital One Spark Cash Plus is a charge card, meaning theres no preset spending limit. This is great for business owners who may have to charge lots of expenses on their card or need to go above their typical credit limit.
- No foreign transaction fees.
For more details, read our Capital One Spark Cash Plus review.
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What You Need To Apply For A Business Credit Card
Every credit card issuer has a different application, but most will ask for applicants to supply the following information:
Business information. You will need to provide the following information about your business including its legal business name, mailing address and phone number. You may also need to provide the industry type of your business and its legal structure such as corporation, LLC, non-profit or sole proprietorship. Other common questions include how long youve operated your business and how many employees you have.
Revenue and Tax information. You will likely be asked a few questions about your business finances. This can include your companys annual revenue, and the amount you expect to spend each month on business expenses. Youll also be asked to supply your companys employer identification number . If you dont have an EIN, you can supply your Social Security Number instead.
Personal information: You will be required to enter your legal name, contact information, total annual income, and your Social Security Number. This is so that the credit card issuer will use this information to check your personal credit score.
Find Out If You Prequalify For A Card
If you prequalify for a credit card, this usually means your credit score and other financial information matches some of the initial eligibility criteria to open a card. Getting prequalified doesn’t guarantee an approval but it does improve your chances. Most prequalification offers will appear in your online or mobile banking, or you might get a letter in the mail. To learn more about whether or not you prequalify for a card, call us anytime at .
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Which Bank Should You Use For A Business Credit Card
Each credit card issuer has different requirements and offers for their business credit cards. You’ll want to research what’s available from several different banks. This could include the large banks that serve the entire nation or regional banks local to your specific area.
You may want to start your research with the bank that holds your company checking account.
What To Look Out For In A Business Credit Card
Although business credit cards provide plenty of advantages, there are a few potential downsides. For example, business credit cards with the most perks can charge high annual fees. If youre unsure about how often youll be charging or whether or not youll really use the perks, consider a business credit card with no annual fee.
Of course, every card you get must be handled properly, and management takes time and attention. You should work to maintain a low balance so fees dont eat into your proceeds, and always pay your monthly bill on time and in full to protect your credit rating.
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What Credit Score Do You Need For A Business Credit Card
Most business credit cards require a in the good-to-excellent range. Thats a FICO credit score of 670 to 850. If your credit score falls outside that range, you may be able to qualify for a business card for people with less-than-stellar credit. But business credit cards for people with fair or bad credit tend to focus more on . As a result, you wont get the same rewards or features that come with other credit cards.
Read more about business credit scores:
Find The Right Credit Card For Your Business
If you have a high enough score to qualify for a card, youll want to start considering which business credit card best suits your needs. Take the following factors into account:
- The interest rates and annual fees vary between cards. You may be able to find a card with a promotional APR that enables you to borrow money without interest for a period of time, but youll want to make sure you can pay off your balance before the true interest rate takes effect.
- Foreign transaction fees. If your business operates in several countries or currencies, a card that waives foreign transaction fees could be useful.
- Rewards and bonuses. Many cards have ongoing perks as well as introductory bonuses that could make them appealing depending on your businesss particular spending patterns.
If your credit score doesnt enable you to qualify for a traditional business credit card, there are secured business credit cards that can help you further establish your businesss credit before reapplying. These cards work similarly to other secured credit cards, which require a deposit equal to the cards credit limit.
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What Happens If One Of My Employees Or I Lose A Business Credit Card
If your business card is lost, stolen, or if you notice unauthorized use on your account, you can request a replacement card:
- Visit our mobile app and select “Replace My Card” on the main menu
- Visit wellsfargo.com/replacemycard
- For Business Platinum Credit Card and Business Secured Credit Card, call 1-800-225-5935. For Business Elite Signature Card, call 1-800-231-5511.
Decide Which Business Credit Card Is Right For You
There are a variety of options for business credit cards on the market, so before you can actually apply for a business credit card, youll need to explore your different options to determine which card is best for your business.
How do you know which business credit card is right for you?
Ultimately, the right credit card for your business will be one that you think youll qualify for, that has the features and rewards youre looking for, and that will help you achieve your financial goals.
With this in mind, here are some features to keep in mind as you sort through your choices:
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Why You Can Trust Bankrate
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here’s an explanation for how we make money. The content on this page is accurate as of the posting date however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
How To Check Your Business And Personal Credit Scores
Credit card issuers consider both your business and personal credit history and credit score when they evaluate your application for a small business credit card. Applying for a credit card will cause a hard inquiry on your credit report, which can have a slight, short-term negative effect on your credit score. To help minimize this impact, be selective and apply for a card designed for your so you’re more likely to get approved.
Most small business credit cards are targeted to people whose credit scores are good or excellent, which translates to a FICO® Score of 670 or higher. There are some cards for those with lower credit scores, but they tend to have higher annual percentage rates and offer fewer rewards or perks.
Checking your business and personal credit scores will help you identify business credit cards for which you’re likely to qualify. You can buy a one-time copy of your Experian business credit report and credit score or sign up for Experian’s business credit monitoring services to access your report and score any time. You should also get a free copy of your personal credit report, review it for accuracy and check your personal credit score.
If your scores aren’t where you want them to be, improving them before you apply for a business credit card could help you qualify for a card with lower interest rates and better rewards. Paying down credit card debt, making payments on time and reducing your can all help to improve your credit.
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How To Get A Business Credit Card: A Step
Luckily, a huge part of figuring out how to get a business credit card is understanding the business credit card requirements listed aboveâand therefore, once youve done that, youve handled a significant part of the application process already. With this in mind, then, lets break down the actual steps necessary to apply for a business credit card:
Do You Qualify For A Business Credit Card
If you get a 1099 instead of a W-2 for work that you do, such as driving for Uber and Lyft or freelancing part-time, you are conducting business activities that would likely qualify you for a business card.
However, conducting business activities isn’t limited to people who receive a 1099. Own a rental property? Sell stuff on eBay or Etsy? These activities generate taxable income and are also business activities, meaning there’s a good reason to keep your finances separate with business banking services like a credit card.
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