Best Business Credit Cards for New Businesses

Are you looking for the Best Business Credit Cards for New Businesses? If Yes, You are at the right place.

In this article, We are sharing all the information about Best Business Credit Cards for New Businesses.

Getting the right credit card for your new business is important when you are just starting out. Startups and new business owners can use the best small business credit cards to expand their purchasing power, pay off big purchases, track expenses, and earn valuable rewards, among other things.

Businesses and startups just starting will need a different type of credit card than large corporations. An expense management tool, a 0% APR period, a welcome bonus, or ongoing rewards can help a fledgling business thrive.

Our list of the best credit cards in this category includes cards from various issuers. If you want to view the cards outside our list, compare them to other credit cards in this category. The credit cards on our list may not meet the unique needs of startups and new businesses.

What are Business Credit Cards?

Businesses can use business credit cards to simplify and make business operations more convenient with regular revolving lines of credit. Although they operate similarly, several things set business credit cards apart from consumer credit cards.

A business credit card and a personal credit card function similarly: Each has an unsecured line of credit and a grace period during which interest is not charged. If the balance is not paid within the grace period, fees may be charged, and interest may accumulate on the account. Business credit cards offer the same guarantees and convenience as consumer credit cards, but they are sometimes subject to different laws and regulations. Because of this, business credit cards do not always have legal protections, such as fraud liability limits.

Best Business credit cards provide rewards and perks much like consumer cards, but those rewards and benefits are often tailored to the needs of small businesses. Most business cards provide bonus rewards on office supplies, internet and phone service, and other categories that small businesses use more frequently. Many small business credit cards offer employee cards for no extra charge as a convenience.

A business credit card offers small business owners more purchasing power, rewards and benefits, and liability protection when proving that a business is, in fact, its entity with its financials (a convenience during tax season).

Can New Businesses Get Business Credit Cards?

New businesses can typically obtain business credit cards without revenue or an established credit history. However, business credit cards for new businesses require a good personal credit score—most cards require a FICO score of 690 or higher—since issuers approve based on personal credit scores rather than financial history.

A secured business credit card is the most suitable option if you do not have a credit history or bad credit could be better. Securing the card involves depositing cash with the issuer so they can freeze your funds if you cannot pay the balance.

Corporate credit cards are also available to professionally funded companies or those with a large business bank account. The approval criteria are based on the company’s finances and business credit score. Corporate credit cards do not require a personal guarantee, which offers some added protection to personal finances.

What are the Best Business Credit Cards for New Businesses?

There are many business credit cards available to startups. Business cards that work well for one company may only work well for one company. A business credit card can help cover costs (an average of $40,000 in the first year) and get your new business up and running if it offers the benefits you value most, gives you maximum value, and is affordable. 

Best Business Credit Card for New Businesses

Here are the Best Business Credit Card for New Businesses

Capital One Spark 2% Cash Plus

The Capital One Spark 2% Cash Plus is the best new business credit card because it offers 2 – 5% cash back and an initial bonus of $1,200 after spending $30,000 in the first three months. You can easily take advantage of these elite rewards, so running your new business can be straightforward in one regard.

There is a $150 annual fee, but managing the account carefully can be a wise investment. However, the card can only finance small business expenses over long periods.

Capital One Spark Cash Plus is a good choice if you have excellent credit and your spending habits are compatible with its rewards. This is a charge card, so you must pay the full monthly amount.

Rewards Details of Capital One Spark 2% Cash Plus

• The first time you spend $30,000, you’ll earn a one-time bonus of $1,200
•  You can earn unlimited 2% cash back everywhere – there are no limits or restrictions on categories
•  Cash back on Capital One Travel bookings for hotels and rental cars up to 5%
•  Earn unlimited 2% cash back on employee purchases with employee cards

Pros & Cons of Capital One Spark 2% Cash Plus

Pros

• The reward rate is high
•  Get a bonus of $1,200 when you sign up
•  There are no foreign transaction fees

Cons

• Fees for membership are high
•  Excellent credit is required
•  Monthly payment is due in full

U.S. Bank Business Altitude™ Connect World Elite Mastercard

A great new business credit card for travel rewards is the U.S. Bank Business AltitudeTM Connect World Elite Mastercard. First, spending $6,000 within 180 days will earn you 60,000 points. Additionally, you will earn 1 – 5 points per $1 spent. With most cards, you only get a fraction of the earning power.

An annual fee of $95 from the second year onward and a high interest rate. However, you can still save a lot of money by paying your bill in full every month. You may qualify for U.S. Commercial Bank Business Altitude Connect if you travel frequently for work and have good credit. The best way to earn bonus rewards is if your company’s top expenses include dining, gas, and electric vehicle charging.

Rewards Details of U.S. Bank Business Altitude™ Connect World Elite Mastercard

• The U.S. Bank Business Altitude ConnectTM World Elite Mastercard® is the world’s most rewarding business travel card.
•  If you spend $6,000 within 180 days of opening your account, you can earn 60,000 bonus points worth $600.
•  When you book hotels and car rentals through the Rewards Center prepaid, you’ll receive 5X points.
•  Get 4X points on combined annual spending of $150,000 for travel, gas, and electric vehicle charging stations.
•  Get 2X points for dining, takeout, restaurant deliveries, and cell phone service.
•  Spend on all other eligible items and earn 1X points.
•  The rewards you earn never expire.

Pros & Cons of U.S. Bank Business Altitude™ Connect World Elite Mastercard

Pros

• Rewards rate that is high
•  The bonus of 60,000 points at the beginning
•  The first year of membership is free
•  There is no foreign fee

Cons

• The second year’s membership fees
•  Limits on rewards spending
•  Purchases with no intro APR
•  There is no intro APR on balance transfers

Capital One Spark Classic for Business

This Capital One Spark Classic for Business credit card offers $0 annual fees and at least 1% cash back on all purchases for new business owners with no credit. The majority of other options will either offer rewards or a low fee, but both at different times.

Having a high-interest rate makes carrying a balance from month to month quite expensive. Capital One Spark Classic is a great option for small business owners with limited credit.

Rewards Details of Capital One Spark Classic for Business

• 1% cash back earned on every purchase for your business, anywhere, no restriction on categories or limits
•  Get unlimited 5% cash back on Capital One Travel hotel and rental car bookings.
•  Cardholders receive unlimited 1% cash back on all purchases using their employee cards.
•  Cash back rewards won’t expire for as long as your account remains active, and you can redeem them for any amount you like.

Pros & Cons of Capital One Spark Classic for Business

Pros

• There are no membership fees
•  There are no foreign transaction fees
•  You can qualify with a limited credit history
•  There is no security deposit required

Cons

• Regular APR is high

Brex Corporate Card for Startups

Brex Corporate Card for Startups is the best business credit card for new business owners without a personal guarantee. There is no annual fee on this card, and you earn 1 – 7 points per $1 spent on purchases. There is also an initial bonus of 30,000 points for spending $3,500 or 50,000 points for spending $9,000 within 30 days. Furthermore, unpaid balances on this credit card won’t be liable to you personally.

Since this is a charge card, you must pay the bill in full monthly. Brex Credit Card may be of interest if you are looking for a card for everyday business expenses that can be repaid by the due date each month, and the rewards suit your spending habits.

Rewards Details Brex Corporate Card for Startups

• When you spend $3,500 in 30 days, you’ll earn 30,000 points. When you spend $9,000 in 30 days, you’ll earn 50,000 points.
•  Brex Cash signup bonuses are worth up to 30,000 points if you meet milestones: 10,000 points for spending the first $3,000 and 20,000 points for connecting payroll.
•  Earn rewards on all card purchases. You don’t have to pay fees; just earn points—for instance, you receive 7x points in rideshare and 3x points in restaurants.
•  You can earn seven points for every dollar you spend on ridesharing, taxis, and travel booked through Brex Travel.
•  You can earn 3 points when you dine out and buy Apple products.
•  Whenever you subscribe to recurring software, you earn 2 points. Everything else earns 1 point per dollar.

Pros & Cons of Brex Corporate Card for Startups

Pros

• There is no membership fee
•  The reward rate is high
•  The bonus of 50,000 points at the start
•  There is no foreign transaction fee

Cons

• A full payment is required each month

Stripe Corporate Card

Stripe Corporate Card is the best credit card for new businesses and does not have a personal guarantee. This card entitles you to 1.5% cash back on every business purchase, and unpaid balances will not be your responsibility personally. Additionally, there is no annual fee.

Stripe Corporate Cards require excellent credit to be approved. This is a charge card, so you must pay the entire balance every month. With a Stripe Corporate Card, you’ll receive a flat rewards rate and no personal guarantee if you have excellent credit personally.

Rewards Details of Stripe Corporate Card

• Across all categories, you’ll earn 1.5% cash back on business purchases.
•  We never let you miss out on your cash-back rewards because your cash-back balance is automatically applied to your monthly bill.
•  The first year’s subscription will include 30% off Hubspot, 50% off Expensify, and $5,000 in credits for Amazon Web Services.

Pros & Cons of Stripe Corporate Card

Pros

• There is no membership fee
•  There is no foreign transaction fee

Cons

• There is no initial reward bonus
•  Excellent credit is required
•  A full payment is required each month

How to Get Best Business Credit Cards for New Businesses?

Both established and new businesses can apply for a business credit card. Most credit cards require the owner to provide a credit history and a guarantee of repayment. Even if your business is new, you will likely be approved if your credit profile matches the card you are applying for. 

An Employer Identification Number (EIN) is needed if you operate an incorporated business. If you are an unincorporated sole proprietor, you can use your social security number (SSN) instead. 

Should You Get the Best Business Credit Cards for New Businesses?

The advantages of owning small business credit cards are numerous. Firstly, you can segregate your purchases from your business expenses, which simplifies the preparation of accounting and tax returns. Most small business credit cards offer powerful expense-tracking features. 

A small business credit card can also be used as a short-term financing tool. Although it may appear to be a waste of money, credit cards can play a crucial role in smoothing out dips in your company’s cash flow. Long-term loans may have better rates, but credit cards can help you smooth out cash flow dips. In some cases, builders may need to purchase supplies and finish a project before their customers can pay, so they can use credit cards to finance the initial expense. 

A small business credit card can also provide valuable rewards, such as points and miles or cash back on purchases. 

Required Application Information for Best Business Credit Cards for New Businesses

It is necessary to provide personal and business information when applying for a business credit card. You will need to bring the following information when applying for your new business credit card:

• Tax ID number: Many entrepreneurs need a separate tax ID for their business, so they use their Social Security number.
•  The Business’s Name: Your new business does not need a legal name, but you can put it here if it does. If your name isn’t available, place your own instead.
•  The Legal Structure/Entity Type: Partnership, corporation, sole proprietorship or LLC. 
•  Your Business Address and Phone Number: If your business does not have a separate business line or street address, use your home address and mobile phone number.
•  Your Business’s Start Date
•  Business Revenue for the Year: You can use the previous year’s gross annual income (earnings before expenses and losses). If your business has no revenue yet, enter $0 on your application.
•  Type of Industry: The work you do in your business, such as transport, construction, or general services.

You will need to provide personal information about yourself and any individuals who own 25% or more of your business, including your address, date of birth, and Social Security number.

How to Choose Best Business Credit Cards for New Businesses

Some credit cards offer better rewards than others for business purchases, so it’s easy to become overwhelmed by the options.

You can help yourself find the right card for your needs and goals by considering the following questions.

• How Do You Like Your Rewards? Some credit cards offer cash back, but others offer transferable points much more valuable than a standard cash-back reward card. Your points can be redeemed for different values based on your chosen redemption method.
•  Where Do You Spend the Most? Credit card websites offer bonus categories for credit cards. Are you planning to use your credit card for any purchases? The bonus categories on your new credit card, such as advertising, office supplies, dining, or travel, are important.
•  Is the Card Worth the Fee? You should compare card fees and annual fees to ensure that the card will earn you enough rewards to cover its cost.
•  Will You Reap the Benefits? Find out what other cardholder perks your business, or you may be able to take advantage of. Business account employee cards with no extra charge, extended warranties, theft and damage protection, and baggage delay coverage are examples of no-extra-cost employee benefits.

FAQs

Can You Get a Business Credit Card with an EIN?

Yes. You can get Business Credit Cards with EIN Only. You can apply for a business credit card with your Employer Identification Number (EIN) or Social Security Number (SSN). Most business credit cards require a personal guarantee in case your business fails, so an SSN is usually required if you apply for a credit card. There are some exceptions.

Can I Get a Business Credit Card with Bad Credit?

There are still opportunities for people with bad credit to get a business credit card; however, you will be limited to secured or small unsecured cards. It is worthwhile to use these cards to help build or repair your credit so that you can eventually qualify for a better credit card if you choose one of these options.

How to Build up Credit as a Startup or Small Business?

To build your business credit, you’ll need to take several steps. First, incorporate your business with the right structure, such as a limited liability company, partnership, corporation, or S corporation. Next, obtain a tax identification number (EIN).

A business bank account must also be opened, and suppliers or vendors who can report their payment history and balances to a credit bureau must be contacted. To build your business credit, you should make your business payments on time and avoid excessive debt. 

Can You Get Guaranteed Business Card Approval?

Getting approved for a business card is never certain, but you can maximize your chances by applying only for cards designed for people with your credit profile. Those with excellent credit may be able to qualify for most cards, while those with good or fair credit may prefer the Capital One Spark 1% Classic*, which only requires fair credit.