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Bank of America® Business Advantage Cash Rewards Mastercard® credit card



Bank of America® Business Advantage Cash Rewards Mastercard® credit card 1

Evaluating Business Credit Card Provides

By: Robin Ratcliff, Tracy Brackman, and Laura Mohammad

In the event you’re a small enterprise proprietor, you in all probability don’t have time to type by means of a laundry record of enterprise playing cards and sophisticated rewards schemes. However should you’re searching for the correct card for your corporation, it pays to sweat the small print.

A very good enterprise card may help you make investments extra in your organization, easy out fluctuations in your month-to-month money movement and construct a greater credit rating for your corporation. It may additionally assist you manage your bills and monitor your workers’ spending.

Even higher, many of the most effective enterprise credit cards these days come filled with beneficiant rewards that assist you trim bills and revel in unique advantages. Right here, we have a look at:

Whether or not you need to perceive extra about the best way to correctly use a enterprise card or the best way to construct enterprise credit, we may help.

How enterprise credit cards work

Business credit cards are designed to be used by enterprise homeowners for enterprise use relatively than personal people who’ve playing cards for his or her private use. They’re typically used to construct an organization’s credit historical past, enhance its cashflow and maintain enterprise bills separate from private prices. Business credit cards can be found to companies of all sizes, together with sole proprietorships, they usually might or might not present up in your particular person credit report.

Business credit cards are nice instruments to prepare expenditures, earn rewards, and save on curiosity funds. Even when your corporation’s spending is modest, choosing the proper credit card can prevent massive sums of cash over time.

“All businesses, regardless of size, should have credit cards specifically designated for business use. You can even qualify for these cards as a sole proprietor,” says Ted Rossman, trade analyst. “Business credit cards offer excellent rewards and make it easier to track expenses and manage taxes.”

An essential distinction to notice: Small enterprise playing cards are totally different from company credit cards. Company playing cards are issued by just a few banks to firms which have a relationship with that financial institution, and are issued to the corporate as a complete relatively than to a person inside the firm.

best business credit cards of 2018’s greatest enterprise credit cards of 2018:

Business Credit Card Greatest For: Rewards Charge Annual Price Ranking
Ink Business LimitlessSM Credit Card Flat-rate rewards on enterprise purchases 1.5% limitless $0 3.6 / 5
The Blue BusinessSM Plus Credit Card from American Categorical Versatile credit restrict and lengthy intro 0% APR interval 2X $0 4.3 / 5
Bank of America® Business Advantage Cash Rewards Mastercard® credit card Business journey purchases and bonus for Business Advantage shoppers 3% at fuel stations and workplace provide shops** $0 2.5 / 5
Ink Business CashSM Credit Card Cash again with excessive rewards charge on workplace provides 5% on workplace provides, web* $0 3.4 / 5
Capital One® Spark® Cash for Business Free worker playing cards and limitless 2% money again 2% limitless $Zero intro for first yr; $95 thereafter 4.4 / 5
Ink Business Most well-likedSM Credit Card Signal-up bonus and excessive rewards on choose enterprise classes 3X on journey, choose enterprise classes $95 3.9 / 5
Capital One® Spark® Cash Choose for Business No expiration on rewards and small enterprise perks 1.5% limitless $0 3.7 / 5
CitiBusiness® / AAdvantage® Platinum Choose® World Mastercard® Worldwide enterprise and flights 2X on eligible AA purchases, choose enterprise classes $Zero intro for first yr; $99 thereafter 3.9 / 5
Capital One® Spark® Miles for Business Bonus miles and worldwide use 2X on all purchases $Zero intro for first yr; $95 thereafter 4.2 / 5
American Categorical® Business Gold Card Excessive rewards charges on enterprise purchases 4X in your 2 high spending classes*** $295 3.8 / 5

*Earn 5% money again on the primary $25,000 spent in mixed purchases at workplace provide shops and on web, cable and telephone providers every account anniversary yr
**As much as $250,000 every calendar yr, 1% after that
***As much as $150,000 yearly, then 1 level per greenback

Analysis methodology: what we thought-about

Business credit cards analyzed: 368

Standards used: Rewards classes, rewards charges, redemption choices and adaptability, sign-up bonus, customer support, small enterprise perks, annual charge, different charges and charges, safety, credit wanted, ease of software

Editor’s tackle the most effective enterprise credit cards

Ink Business LimitlessSM Credit Card

For small enterprise homeowners searching for an easy rewards construction, the Ink Business Limitless’s 1.5% again on all purchases is a pleasant possibility. There’s additionally a sizeable sign-up bonus of $500 after you spend $3,000 on purchases within the first Three months.

Whereas the continued rewards are decrease than that of the Spark Cash for Business, this card comes with no annual charge, whereas the Spark Cash for Business requires a $95 annual charge after the primary yr. The Ink Business Limitless additionally affords 0% intro APR on purchases and stability transfers for 12 months (then 15.24% – 21.24% variable), one thing you will not get with the Spark Cash for Business.

The Blue BusinessSM Plus Credit Card from American Categorical

This card has no annual charge, and you will get 2X factors on each buy as much as $50,000 every year. Then it is 1X level after that on all purchases. You may redeem them in a range of methods – journey, assertion credit, and extra.

Along with no-fee worker playing cards, you will have entry to the Spend Supervisor characteristic, which lets you add receipts and notes to your transactions, in addition to permitting you to label and switch your American Categorical knowledge to QuickBooks.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card

With its 3% money again at fuel stations and workplace provide shops (as much as $250,000 every calendar yr, 1% after that), the Business Advantage Cash Rewards card is ideal for enterprise journey and frequent street journeys in addition to common enterprise bills. It additionally affords 2% again at eating places and 1% on every part else, solidifying its standing as a flexible credit card.

Whereas its money again bonus is a lackluster $200, its required spend is a paltry $500 within the first 60 days of opening your account. Add to that, there isn’t any annual charge with this card. Whereas its 0% intro APR is just for purchases and just for 9 billing cycles (then 13.24% – 23.24% variable APR), it may possibly nonetheless turn out to be useful should you plan to hold a stability.

Ink Business CashSM Credit Card

The Ink Business Cash has a extremely sturdy sign-up bonus and 5% money again in widespread enterprise spending classes (workplace provide shops, web, cable, telephone). Contemplate this a go-to enterprise card should you spend most in these classes and don’t desire the trouble of an annual charge.

The sign-up bonus is $500 after a $3,000 spend inside the first Three months of card membership, and the 5% money again is on the primary $25,000 spent on these classes within the yr. You can even earn 2% again as much as $25,000 at fuel stations and eating places every year, making it a competitor of the tiered shopper money again playing cards, akin to Blue Cash On a regular basis and Bank of America Cash Rewards. It is 1% again on all different purchases, no limits.

Capital One® Spark® Cash for Business

In the event you do not need to fear about remembering what your bonus classes are, the Spark Cash is a good card – you get 2% money again on each buy. Couple that with a powerful sign-up bonus and quick access to extra worker playing cards, and you’ve got one of the strongest enterprise playing cards on the market.

This card has a $500 one-time bonus after a $4,500 spend in Three months – a excessive required spend, however a good bonus. With the flat charge for ongoing rewards, there isn’t any tinkering with rotating classes, and the two% again is kind of good. Lastly, worker playing cards come at no further price, and you’ll earn rewards from workers’ spend.

Stefanie O’Connell (private finance knowledgeable): “Unlimited 2 percent cash back on every purchase, a $500 sign-up bonus and simple cash back reward redemption make the Capital One Spark Cash for Business card an easy way to get rewarded for doing business on a daily basis.”
Daniel P. Ray (editor-in-chief at “With the Capital One Spark Cash for Business card, you don’t have to learn about complicated redemption plans. You just earn, and handsomely, with every purchase.”
Matt Schulz (chief trade analyst at CompareCards): “If you’re running a business, your to-do list is 100 miles long. What you want from a card is simplicity, flexibility and predictability. That’s why Spark Cash from Capital One is so great. It’s a simple cash back card that gets you 2 percent on everything you spend. Nice and easy, and you can use those rewards on whatever you think is best for your business.”

Ink Business Most well-likedSM Credit Card

The Ink Business Most well-liked has one of the most effective sign-up bonuses in the marketplace proper now, and it has nice rewards charges in widespread enterprise expense classes. This card is a no brainer should you spend quite a bit on promoting and need the bonus 25% in factors when utilizing the Chase Final Rewards portal to e-book journey.

Earn 80,000 factors (value $1,000 in journey by means of Final Rewards) after you spend $5,000 inside the first Three months of card membership. Additionally, earn 3X factors on journey, transport purchases, web, cable and telephone providers, and promoting purchases made by means of social media and search engines like google as much as a mixed $150,000 every year. Earn 1X level on all different purchases. You can even stand up to $600 per declare in cellphone safety in opposition to theft or injury for you or your workers listed in your cell invoice and if you pay with this card (max Three claims a yr, with a $100 deductible on every declare).

Capital One® Spark® Cash Choose for Business

This card has many of the Spark Cash’s advantages, together with no charge on worker playing cards and skill to earn rewards on workers’ spend. The Spark Cash Choose’s rewards of 1.5% again on all purchases have been trimmed when in comparison with the Spark Cash, however with out the added expense of an annual charge.

The one-time bonus can be decrease, at $200, though the required spend can be decrease, at $3,000 inside the first Three months. Rewards will not expire for the life of the account, and you’ll redeem your money again for any quantity.

CitiBusiness® / AAdvantage® Platinum Choose® World Mastercard®

A fantastic selection particularly for companies that require cross-country or worldwide journey, this card comes with a stellar sign-up bonus of 70,000 AAdvantage miles for spending $4,000 within the first Four months. You earn 2X miles not solely on eligible American Airways purchases, but in addition a quantity of key enterprise bills, together with at telecommunications retailers, cable and satellite tv for pc suppliers, automobile rental retailers, and fuel stations.

It additionally comes with the sort of premium perks you’ll count on, like most popular boarding on AA flights and free first checked luggage on home AA flights. The $99 annual charge is waived within the first yr.

Capital One® Spark® Miles for Business

This card affords 50,000 miles after a $4,500 spend inside the first Three months, in addition to 2X miles on all purchases. The $95 annual charge is waived the primary yr and there are not any overseas transaction charges.

One shock: Whereas the card carries a excessive rate of interest of 18.74% variable, there isn’t any stability switch charge, so this card might be a stable possibility if you’re consolidating debt and you intend to pay the stability off shortly.

American Categorical® Business Gold Card

For enterprise homeowners looking for excessive rewards on a range of purchases, the Business Gold Card is a good match. From 6 attainable classes, you’ll earn 4X factors on the two classes by which you spend probably the most in every billing cycle. These 6 classes embrace airfare bought instantly from airways and U.S. purchases in choose media promoting, fuel stations, eating places, transport, and choose laptop software program and {hardware}. All different purchases earn 1 level per greenback; notice that purchases within the aforementioned classes additionally drop to 1 level per greenback after the primary $150,000 spent every year.

There’s an annual charge of $295, however the rewards make the charge simply value it for companies with medium to excessive bills. The Business Gold Card additionally comes with some attention-grabbing welcome affords, particularly as much as 1 yr free of G Suite Fundamental and ZipRecruiter Normal.

Professionals and cons of enterprise credit cards

In case you are a small enterprise proprietor attempting to construct your credit historical past and develop your corporation, a enterprise credit card is usually a helpful device. However in addition they include potential downfalls.

Right here’s a abstract of the professionals and cons:


Enhance your money movement
If you must make purchases for your corporation earlier than your prospects pay you, utilizing credit cards is usually a sensible apply – so long as you’re assured of getting the funds to repay the stability. Business playing cards have a tendency to supply larger credit limits and extra versatile cost phrases to assist with money movement. Some playing cards even give enterprise homeowners versatile due dates to repay a stability.

Monitor and handle your corporation spending
Business playing cards assist you to maintain your corporation spending separate from private bills, and to see all your corporation purchases in a single place. Most enterprise credit cards will combine with Quickbooks, so you may simply add and observe your spending.

Problem playing cards to your workers with spending controls
Many enterprise playing cards will situation particular person playing cards to your workers free of charge, to avoid wasting your workers from having to cowl enterprise bills with their private funds. In case you are leery about workers misusing their playing cards, you may arrange spending limits and alerts for every person to maintain them in examine. One other bonus of worker playing cards: You get to gather the rewards on all their purchases.

Get rewarded on business-specific purchases
A enterprise credit card may help you reap substantial rewards on your corporation purchases, with bonus classes focused to widespread enterprise purchases. The Chase Ink Business Cash Credit Card, as an illustration, affords 5 % money again bonus on workplace provides, web, cable and telephone providers (on the primary $25,000 in mixed purchases every year).

Further sign-up bonus alternatives
In the event you’ve maxed out your alternatives to earn sign-up bonuses with a sure issuer, you could possibly gather an extra sign-up bonus by making use of for the enterprise model of a card – and sometimes with a bigger sign-up bonus than the non-public model of the card.


Much less consumer-friendly
Business playing cards are sometimes laden with options – akin to detailed expense monitoring and spending experiences – which may be overkill for the typical shopper. Additionally, as a result of they’re exempt from the patron protections provided by the federal Credit CARD Act, you is perhaps charged larger late charges or have your APR abruptly hiked up (although many issuers lengthen consumer-friendly phrases to their enterprise playing cards).

The right way to apply for a enterprise credit card

Chances are you’ll assume that it’s a must to be the proprietor of a enterprise with a number of workers and an workplace or retailer entrance to use for a enterprise credit card, however that merely isn’t true. Anybody who owns a aspect enterprise – akin to baby-sitting, yard upkeep, running a blog or consulting – that makes cash (or probably doesn’t even have an earnings but) can doubtlessly qualify for a enterprise card.

Right here’s what you’ll be requested for if you apply:

  • Your enterprise info
    You’ll want to produce some fundamental details about your corporation: The identify of your corporation (or your private identify, should you’re a freelancer), the sort of enterprise (partnership, company or sole proprietorship), your function within the enterprise, your corporation handle and telephone quantity, how lengthy you’ve been in enterprise, your quantity of workers, your annual enterprise income and your estimated month-to-month spend.
  • Your private info
    You’ll want to incorporate your private particulars on the applying as properly, together with identify, handle, contact info, Social Safety quantity, birthdate, mom’s maiden identify and family earnings.

Having a well-established enterprise, of course, helps your odds, however you could possibly qualify by simply supplying the above info. Listed below are a couple of different issues you are able to do to spice up your possibilities of qualifying:

  • Pay down debt
    Pay down your current card debt about 30 days earlier than making use of for a brand new card.
  • Record all of your earnings
    When making use of, be sure you record earnings earlier than taxes, and embrace earnings akin to pension, alimony and rental earnings.
  • Be trustworthy in your software
    Don’t make up pretend income for your corporation hoping to push your software by means of. If the financial institution double checks in your software and finds your software isn’t correct, you may get rejected.
  • Begin a relationship with the financial institution
    If you have already got a relationship with the financial institution, you’ve a higher probability of getting accepted for one of their enterprise playing cards. Begin a checking account for your corporation with the financial institution after which strive making use of for one of their playing cards.

How to decide on the most effective credit card for your corporation

Bank cards are among the many hottest varieties of credit for enterprise homeowners – actually, it’s the preferred amongst these not making use of for a line of credit. Some 44% say they frequently use playing cards, with the second most typical being a mortgage or line of credit at 38%, in accordance with the Federal Reserve’s 2017 Small Business Credit Survey.

There’s no one-size-fits-all enterprise credit card. Business’s credit wants can range enormously, and enterprise credit cards range together with these wants. As Ted Rossman factors out, “Choosing the right business credit card depends on what you’re looking for (cash back, free travel, low interest, etc.). There are lucrative sign-up bonuses to be had, and rewards on spending categories tailored for businesses (such as travel, technology, internet, phone, shipping and online advertising purchases).” Right here’s what you must contemplate in selecting the most effective card to your wants:

How do you need to use the card?

Your first step in selecting the correct enterprise credit card is figuring out what your wants are for a credit card.

  • Do you must make a purchase order and pay the debt off over time? In that case, then a card with a 0-percent APR on new purchases is perhaps a great way to go.
  • Do you want the card to create money movement for your corporation? You may have a look at a cost card or a credit card with extra versatile spending phrases, such because the American Categorical Plum card.
  • Are you searching for a card to start out constructing a credit historical past for your corporation? So long as the card issuer will report your good habits to the credit bureaus, any card will serve this goal.
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What are your spending habits?

Contemplate the quantity that you just’re more likely to cost every month, and whether or not you’re assured of paying your invoice off on the finish of the month. In the event you want the flexibleness to make very massive purchases, you may select a cost card, which doesn’t impose a credit restrict.

In the event you’re more likely to carry a stability in any respect, you may need to steer clear of a cost card as a result of you may incur a stiff penalty for not paying off your invoice, though American Categorical now has a program that lets you pay over time should you qualify. And, should you suppose you’ll want extra flexibility in paying off your stability, you may search for a card with a extra versatile deadline.

What varieties of rewards are you curious about?

In the event you suppose a rewards card is the best choice for you, the following step is to determine your choice for rewards.

  • Do you or your workers journey typically for enterprise, and are you loyal to a selected airline or lodge? You may contemplate signing up for a cobranded airline or lodge card, which might be extraordinarily rewarding for devoted prospects.
  • Or, if you’d like extra versatile redemption choices, you may contemplate a versatile factors card, such because the Chase Ink Business Most well-liked card.
  • In the event you’re searching for simplicity, a money again card might be your greatest wager – you may redeem your money again as assertion credit or have it deposited right into a checking account with out having to fret about the best way to use rewards factors.

What varieties of spending do you do?

When you’ve settled on the sort of rewards that you just favor, it is best to have a look at how your corporation allocates its spending, to determine which card can be most rewarding for you:

Do you thoughts paying an annual charge?

Many enterprise credit cards include annual charges, and the charges are sometimes properly value it. In the event you run some calculations, you’ll typically discover that you just’ll get way more worth out of a card with an annual charge than a card with out one.

Comparability of Spark Cash and Spark Cash Choose, first yr…

Card Ongoing rewards Signal-up bonus Annual charge Complete at finish of 1st yr
Capital One Spark Cash Choose for Business 1.5%*$1,000 a mth*12 mths=$180 $200/$3,000 spend in Three mths $0 $380
Capital One Spark Cash for Business 2%*$1,000 a mth*12 mths=$240 $500/$4,500 spend in Three mths $95, waived first yr $740

As you will discover, the Spark Cash is worth it the primary yr as a result of of the waived annual charge and the upper sign-up bonus. However issues change within the second yr:

Comparability of Spark Cash and Spark Cash Choose, second yr…

Card Ongoing rewards Annual charge Complete at finish of 1st yr
Capital One Spark Cash Choose for Business 1.5%*$1,000 a mth*12 mths=$180 $0 $180
Capital One Spark Cash for Business 2%*$1,000 a mth*12 mths=$240 $95, waived first yr $145

As you may see, within the second yr, the card with no annual charge is a greater match with a decrease spend.

Contemplate the opposite advantages

Business credit cards typically include an extended record of advantages that may add appreciable worth to card on high of the card’s rewards program. Maintain an eye fixed out for options to trace and handle your spending, together with integration with account software program akin to Quickbooks, which might make life a lot simpler for you (or your account supervisor).

In the event you plan to situation playing cards to your workers, it is best to search for a card that lets you set spending controls and alerts in your worker playing cards. Additionally, playing cards typically include journey and buy protections that may add some insurance coverage to your subsequent journey or main enterprise buy.

The right way to evaluate two enterprise credit cards

The very best method to evaluating two enterprise credit cards is determined by how you plan to make use of the card. In case you are looking for a card to finance a big cost, you may evaluate the rates of interest on two playing cards (or the size of their introductory interval in the event that they each supply 0-percent financing) and the flexibleness of their reimbursement phrases. In case you are searching for a card to handle money movement, you may look at the flexibleness of cost phrases on two playing cards. Or, if you’re hoping to earn money again or journey rewards along with your credit cards, you may evaluate the worth of the rewards you can earn with every card.

Since enterprise rewards playing cards are a well-liked possibility, we’ll take a deeper dive into the best way to evaluate them:

Evaluating rewards values

Your first step is to calculate the rewards worth for the 2 playing cards. Mainly, you must estimate how a lot you’re more likely to spend in every of the card’s bonus classes over the yr, multiply that quantity by the rewards worth (don’t neglect to determine within the worth of factors if it’s a factors or miles card), add within the sign-up bonus and subtract the annual charge. It is best to use the next method:

Rewards worth = (Spend in class 1 x Rewards charge x Level worth) + (Spend in class 2 x Rewards charge x Level worth), and many others. + Signal-up bonus – Annual charge

For instance, within the following desk we calculate the rewards earnings for a cardholder who spends $48,000 on a card in a yr, with 6 % of their spending allotted to workplace provides, web, cable and telephone providers ($2,880); 12 % to eating out ($5,280); 11 % to fuel station purchases ($5,760); and 71 % to different varieties of purchases ($34,080).

For this explicit cardholder, the Capital One Spark Cash card – although it doesn’t supply any bonus classes — comes out forward, due to its excessive charge of 2 % money again on each buy:

Rewards worth within the first yr ($48,000 spend)

Capital One Spark Cash
Chase Ink Business Cash
2% x $48,000 + $500 sign-up bonus – $Zero annual charge (waived first yr) = $1,460 (5% x $2,880) + (2% x $5,280) + (2% x $5,760) + (1% x $34,080) + $500 sign-up bonus – $Zero annual charge = $1,205.60

Over the long run, the Capital One Spark Cash card proves to be the higher worth. Even once we add within the annual charge within the second yr, our mannequin cardholder nonetheless earns a bigger quantity of money again with the Capital One Spark Cash card:

Rewards worth within the second yr ($48,000 spend)

Capital One Spark Cash
Chase Ink Business Cash
2% x $48,000 – $95 annual charge = $865 (5% x $2,880) + (2% x $5,280) + (2% x $5,760) + (1% x $34,080) – $Zero annual charge = $705.60

Evaluating different options

You also needs to check out the playing cards’ different options earlier than you determine which one to go together with. As an example, you must contemplate how straightforward it’s to earn and redeem rewards with the playing cards.

The Capital One Spark Cash card and the Chase Ink Business Cash card are each easy, versatile playing cards, however the Capital One Spark Cash card comes out forward in redemption flexibility. In contrast to the Chase Ink Business Cash card, the Capital One Spark Cash card doesn’t set any limits on the money again you can earn and there’s no minimal threshold to redeem your money again. You may redeem any quantity at any time, and you’ll even set your account to mechanically redeem your money again, as soon as it reaches a specific amount:

Evaluating redemption flexibility

Bank of America® Business Advantage Cash Rewards Mastercard® credit card 2
Capital One Spark Cash
Chase Ink Business Cash
  • Do awards expire? No
  • Redemption choices: Cash again, reward playing cards, donations
  • Limits on money again? No
  • Minimal redemption quantity: Redeem any quantity of money again at any time (and set thresholds to mechanically redeem your money again)
  • Do awards expire? No
  • Redemption choices: Cash again, journey, reward playing cards, Amazon factors, experiences
  • Limits on money again? $25,000 buy restrict for every bonus class
  • Minimal redemption quantity: $20

Once you have a look at the playing cards’ options, you may see that the Chase Ink Business Cash card, whereas it does have comparable account administration options to the Capital One Spark Cash card, doesn’t have the identical depth of journey and buy protections. After all, the Capital One Spark Cash card comes with a $95 annual charge. Mainly, you’re paying a premium for all the additional options:

Bank of America® Business Advantage Cash Rewards Mastercard® credit card 2
Capital One Spark Cash
Chase Ink Business Cash
  • No charge for worker playing cards
  • Quarterly and year-end summaries
  • Cell app sends you alerts and helps you handle spending on the go
  • Integrates with QuickBooks, Quicken and Excel
  • Reductions on enterprise purchases with Visa SavingsEdge
  • No overseas transaction charges
  • Buy safety
  • Prolonged guarantee
  • Worth safety
  • Automobile rental insurance coverage
  • Misplaced baggage reimbursement
  • Journey accident insurance coverage
  • Journey and emergency help
  • Roadside dispatch
  • VIP entry and particular occasions
  • Emergency card providers
  • No charge for worker playing cards
  • Set particular person limits on worker playing cards
  • Cell app sends you alerts and allows you to snap and tag receipts on the go
  • Buy safety
  • Prolonged guarantee
  • Automobile rental insurance coverage

As you may see from our instance, a card with an annual charge can typically be an excellent worth, relying in your spending habits and whether or not you’re doubtless to make use of all of the options. However who says it’s a must to select only one enterprise rewards card? Signing up for a number of rewards playing cards and juggling them to earn further factors within the playing cards’ bonus classes might be a good way to maximise your rewards.

The right way to correctly use and handle a enterprise credit card

A enterprise credit card is usually a highly effective device for rising your buying energy and constructing your corporation credit historical past, however it may possibly additionally include critical liabilities. Listed below are some suggestions that will help you keep away from the pitfalls:

Learn your card’s phrases and circumstances

Since enterprise playing cards aren’t regulated by the CARD Act, it is best to take a detailed have a look at your card’s phrases and circumstances and monitor any adjustments to phrases and circumstances that are available in your electronic mail. Maintain an eye fixed out for adjustments in rates of interest, due dates or charges.

Solely use your card for enterprise bills

Don’t put your private spending on your corporation credit card. Mingling your bills makes it more durable to trace your corporation spending. Plus, it may possibly make you personally liable if somebody sues your organization.

Maintain workers in examine

Put limits and alerts in your workers’ credit card accounts and set up clear guidelines on how workers can use their playing cards.

Restrict who you give worker playing cards to

Don’t simply hand out playing cards to each worker in your organization. Restrict playing cards to accountable workers who want playing cards to make purchases on a frequent foundation. This can assist maintain your bills in examine, simplify account administration and restrict the chance of an worker occurring a spending spree.

Use your card frequently and pay the stability in full

By placing a stability in your card every month and paying it off by the due date, you may shortly enhance your corporation credit rating by making a report of well timed funds.

Spend solely on what you want

Don’t let your card’s rewards program tempt you into placing further purchases on the card. Cost solely what you must every month.

Monitor your spending fastidiously

Use your credit card’s expense reporting options to maintain shut tabs in your spending. Search for alternatives to chop bills.

Anticipate your money movement

Work out forward of time what your money movement goes to be by means of the month. See should you can negotiate your due date along with your credit card issuer in order that it falls on a date the place you should have funds to repay your stability. Make massive purchases proper after your assertion closes so you’ve loads of time to repay the stability.

Make a plan to repay a big buy forward of time

Ensure you have a plan in place to repay the quantity that you just borrow in opposition to your credit line, so you may pay it off shortly and keep away from excessive curiosity charges, penalties or probably incurring a debt you may’t afford to repay. Keep away from carrying a stability previous the due date should you can, for the reason that curiosity might be very pricey.

Take benefit of buy protections

Buy tools along with your credit card to increase the card’s buy protections to it. You may probably save your self quite a bit of cash if the worth goes down, or your tools malfunctions or will get misplaced or stolen.

Use your account administration options

Take benefit of all of the options your issuer affords to simplify your account administration. Arrange automated alerts to your card and your workers’ playing cards, arrange autopay to be sure you meet your cost due date and hyperlink your account to your accounting software program so you may simply obtain all of your bills.

Deduct curiosity out of your taxes

In the event you do occur to incur curiosity from carrying a stability on a enterprise credit card, be sure you notice it in your tax kind – it counts as a enterprise expense.

How do you construct enterprise credit?

To construct a credit historical past for your corporation, you must set up that your corporation is a separate entity from your self and take steps to guarantee that your corporation’ spending exercise is being tracked by enterprise credit bureaus. Listed below are some steps you may take to create a credit historical past for your corporation:

Begin a enterprise checking account

A checking account will assist you set up your corporation as a monetary entity. Make sure you use it responsibly – maintain an sufficient stability in it and don’t bounce checks.

Make sure that your corporation is on the credit reporting radar

Register for a DUN quantity by means of Dun and Bradstreet to determine a credit historical past with them. For Experian and Equifax, set up a LLC so you may get an EIN and arrange a telephone line with a listed quantity.

Use D&B Credit Builder

If some of your vendor accounts do not make it onto your credit report, you should utilize D&B’s Credit Builder service to supply constructive cost info to your credit report. You may present D&B along with your distributors contact info, then D&B will contact them to confirm your cost historical past.

Strengthen your private credit historical past

Unlikely although it might appear, constructing your private credit rating is one of the primary steps to constructing a credit historical past for your corporation. A very good private credit rating may help you purchase your first traces of enterprise credit. Additionally, your private credit historical past will doubtless be thought-about down the road together with your corporation credit historical past if you apply for added loans.

Apply for a small enterprise credit card

Earlier than you’ve constructed up your corporation credit historical past, you should utilize your private credit historical past to qualify for a enterprise credit card. Your exercise on the card needs to be reported to all of the enterprise credit bureaus. Use it typically and be sure you pay your invoice on time and in full every month.

Make your funds on time

Constant and immediate funds are the one most-critical think about a enterprise credit report. Diligently paying all of your accounts on time will go a great distance towards demonstrating your potential to handle loans.

Streamline your invoicing

To be sure you could make your personal funds on time (and reduce your want for money movement), make sure that your personal prospects paying you in a well timed method. Ship out your invoices as quickly as a service is carried out and encourage your prospects to pay on time.

Use enterprise credit as a substitute of private credit when you may

Shift your spending to your corporation accounts and repay your stability in time to strengthen your organization’s credit report.

Ask for a credit line improve

Request credit line will increase in your current accounts – it will enhance your credit-to-debt ratio and thus your general credit rating.

What is an effective credit ranking for a enterprise?

Credit scoring for companies is a bit totally different (and extra sophisticated) than scoring for shoppers. Private FICO scores vary from 300 to 850 whereas enterprise credit scores typically vary from zero to 100. There are three main enterprise credit rating bureaus – Dun & Bradstreet, Equifax and Experian – they usually all construction their rankings otherwise. Right here’s a fast abstract for you:

Dun & Bradstreet affords three scores in its credit report:

  • Paydex rating – An indicator of the timeliness of your funds. The rating ranges from zero to 100. A rating above 80 signifies funds made inside phrases.
  • Business credit rating – Exhibits the chance of a extreme delinquency in your payments within the subsequent yr. The rating ranges from 101 to 670, with a decrease rating representing the next chance of a delinquency. A rating above 450 is sweet and above 482 is great.
  • Monetary stress rating – Predicts the chance of your corporation failing inside the subsequent yr. The rating ranges from A rating above 1509 is sweet and above 1570 is great.

Equifax affords 4 scores in its credit report:

  • Credit info – Measures your delinquency threat based mostly on constructive and unfavorable info in your credit file. The rating ranges from 20 to 70, with decrease scores being higher.
  • Fee index – Exhibits the timeliness of your funds to distributors and collectors. The rating ranges from zero to 99. A rating decrease than 30 (i.e., your funds are normally made within the first 30 days) is greatest.
  • Business delinquency rating – Exhibits the chance of a extreme delinquency in your payments within the subsequent yr. The rating ranges from 101 to 992. A better rating is best.
  • Business failure rating – Predicts the chance of your corporation failing within the subsequent yr. The rating ranges from 1,000 to 1,610. A better rating is best.
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Experian affords a single rating in its credit report:

  • Business credit rating – A complete ranking of your creditworthiness, based mostly in your credit historical past, together with balances and excellent loans, cost habits, whether or not you’ve any liens in opposition to you, judgments or bankruptcies in opposition to your corporation and the scale and age of your corporation. The rating ranges from zero to 100. A rating larger than 50 is sweet.

Word, if you’re intending to use for a enterprise credit card, you’ll additionally want to take a look at your private FICO rating, since card issuers use your private credit historical past to find out your credit worthiness. A FICO rating of 700 is taken into account good, whereas 750 and above is taken into account wonderful.

How do I discover my enterprise credit rating?

Yow will discover your corporation credit rating by visiting the Dun & Bradstreet, Equifax and Experian web sites. You may examine your corporation credit historical past for gratis. You’ll have to pay a charge to see your credit scores — $61.99 to your Dun & Bradstreet rating, $99.95 to your Equifax rating and $39.95 to your Experian rating.

Do enterprise credit cards construct private credit?

Often not. Business credit cards sometimes aren’t recorded in your private credit report until your account turns into significantly delinquent – but it surely is determined by the issuer. Capital One, as an illustration, does report all of the exercise on your corporation playing cards to shopper credit bureaus, however Bank of America doesn’t.

Right here’s a abstract of credit reporting insurance policies for the main issuers:

Issuer Studies to private credit bureaus?
American Categorical Sure. However solely unfavorable info.
Bank of America No.
Citi No.
Capital One Sure. Capital One flags all knowledge despatched to private credit bureaus as “small business” so bureaus can incorporate the info into their experiences accordingly.
Chase No. However will if account turns into significantly delinquent.
U.S. Bank No. However will if account turns into significantly delinquent.
Wells Fargo No.

A enterprise card vs. a shopper card

Whereas shopper and enterprise playing cards have a lot in widespread, enterprise playing cards are focused to small companies and have distinctive options that will make them much less helpful for somebody who doesn’t personal a enterprise. Listed below are the important thing variations:

Greater credit limits and extra versatile cost phrases

Business playing cards typically have higher phrases than shopper credit cards. Business playing cards steadily include larger credit limits, and a few playing cards – such because the American Categorical Plum card – might supply versatile cost phrases to assist companies preserve money movement.

Richer rewards

Business homeowners, who are likely to spend extra closely on their playing cards than private cardholders, are plum targets for credit card issuers. Business playing cards typically characteristic very beneficiant bonuses to lure in enterprise homeowners.

Solely enterprise homeowners can apply

In contrast to private playing cards, that are just about open to anybody with a excessive sufficient credit rating, enterprise credit cards require you to personal a enterprise to use. Fortunately, the definition of a qualifying enterprise is permissive – any aspect job by means of which you earn earnings might qualify as a enterprise.

Rewards focused towards enterprise purchases

Business credit cards have a tendency to focus on their bonus classes towards widespread varieties of enterprise purchases, akin to journey, eating and workplace provides.

Business-related options

Business playing cards additionally have a tendency to return with options that assist enterprise homeowners handle their credit card spending, akin to expense monitoring, integration with Quickbooks and the power to situation worker playing cards with spending limits and account alerts.

Construct enterprise credit

Business credit cards report back to enterprise credit bureaus, and are very helpful for constructing a credit historical past for your corporation.

Could not go in your private credit report

Relying on the issuer, a enterprise credit card account might not seem in your private credit report. Some issuers, akin to Capital One, report all your corporation credit exercise, some solely report delinquencies and a few issuers don’t report to private credit bureaus in any respect.

No shopper protections

Shopper protections, such because the credit CARD Act of 2009, typically don’t apply to enterprise credit cards. With a enterprise card, you may doubtlessly be topic to instantaneous charge hikes, fluctuating due dates and excessive late charges and overlimit prices. (Nonetheless, most issuers voluntarily lengthen the identical protections to their enterprise credit card prospects.)

Business credit cards vs. enterprise cost playing cards

Business credit cards and enterprise cost playing cards are similar to each other – you should utilize both kind of card to make purchases in opposition to a line of credit, which needs to be paid both partially or in full by the top of the month. There are key variations between the 2, nevertheless:

  • Bank cards have a preset spending restrict, which you aren’t allowed to go over with out being penalized or having your card declined.
  • Cost playing cards don’t have a preset spending restrict. This offers companies the flexibleness to make a big buy with out having to request a credit improve. (Issuers should still impose an general cap on how a lot you spend, nevertheless.)
  • Bank cards assist you to carry a stability switch month to month. You’re charged curiosity in your stability should you don’t pay it in full ranging from the top of your grace interval, and you may owe a penalty should you don’t make a minimal cost in your stability.
  • Cost playing cards penalize you should you don’t pay your stability in full on the finish of the month. You may be penalized sharply should you don’t repay the invoice in your cost card on the finish of the month – round Three % of whole stability. Additionally, your issuer might droop your credit.

A cost card often is the higher strategy to go for your corporation, since they provide extra spending flexibility they usually have much less affect in your credit rating, since there isn’t a debt-to-credit ratio. Nonetheless, they may also be tougher to qualify for. A enterprise credit card often is the higher possibility should you want a card with a decrease barrier to entry and in addition if there’s a chance you may carry a stability from month to month.

Main enterprise applications

Whether or not you’re on the look ahead to enterprise loans or journey enterprise playing cards, the main banks’ enterprise applications are value a glance.


Business playing cards

There are additionally associate small-business playing cards with Southwest, United and Marriott, all with bonuses and ongoing factors or miles. These embrace boosted rewards for loyalty, akin to 5X factors on Marriott purchases, and Southwest Fast Rewards Premier Business Credit Card affords 6,000 factors each anniversary.

Additionally provided are checking, service provider providers and enterprise lending.


Accessible merchandise, relying in your space, embrace Chase Complete, Chase Efficiency and Chase Platinum. You may earn $200 again with qualifying actions.

Service provider providers

Not solely does Chase be sure you can settle for funds on-line, by means of cell and every part in between, however the financial institution additionally affords the most recent in safety.

Business lending

Choices embrace enterprise traces of credit, enterprise time period loans, SBA financing, industrial actual property financing and tools financing.


Business playing cards. Lending. Connecting with QuickBooks. American Categorical options potentialities you will love.

Playing cards

Small enterprise and company playing cards abound with this model, permitting you to earn rewards each from your personal bills and people of your workers. Handle bills with Spend Supervisor and sync transactions with Connect with QuickBooks.

Business Funding

Capital One

Whether or not you are searching for a journey enterprise card or a checking account with a beneficiant bonus, Capital One affords selections.

Small Business Bank

The small enterprise choices are infinite with Capital One.There’s Business Limitless or fundamental checking, with as much as a $1,000 bonus, and retailers can save as much as 0.15% on processing charges. You can even get 1.75% APY for 12 months on Business Advantage Financial savings and as much as $7,500 off closing prices in your industrial actual property mortgage (promotional charge will expire 365 days after account opening; upon expiration, normal rate of interest in impact as of that date will apply to all the stability). There’s additionally Escrow Categorical, 401(okay) options for your corporation and, of course, playing cards.

Spark Playing cards

The Spark playing cards supply a bunch of journey and buy advantages, together with buy safety; prolonged safety; save as much as 15% at taking part retailers by means of Visa SavingsEdge; journey and emergency help; and auto rental collision injury waiver. Additionally get a quarterly and year-end abstract; worker playing cards at no extra price; downloadable buy information; and no overseas transaction charges.

Bank of America Business Advantage

Business Advantage affords a plethora of enterprise instruments and choices, together with checking; credit cards; service provider providers; and Merrill Edge for enterprise and private retirement planning.


You may select between Business Fundamentals Checking, which is sweet in case your common month-to-month stability is underneath $5,000, and the Business Advantage Checking, which is an possibility when your common month-to-month stability is greater than $15,000.

Playing cards

Earn an announcement credit, money again, factors, or get a all-time low variable APR to your stability transfers. For instance, the Business Advantage Cash Rewards Mastercard affords 3% again on fuel stations and workplace provide shops (as much as $250,000 every calendar yr), and the Business Advantage Journey Rewards Mastercard affords 25,000 bonus factors (if you spend $1,000 in internet purchases inside 60 days of your account opening).

Service provider providers

All kinds of Clover level of sale merchandise can be found, akin to Clover Go for meals vehicles, farmer’s markets and different companies and not using a storefront, or Clover Station for retailers who want enterprise administration options along with cost processing akin to eating places and retail.

Merrill Edge

Use Merrill Edge to your retirement wants and get monetary savings with tax benefits; get aggressive pricing; have extra choices; and achieve entry to specialists. You should use Merrill Edge for 401(okay)s, particular person 401(okay)s, SEP IRAs or SIMPLE IRAs.

Frequent enterprise credit card rewards classes

The bulk of enterprise playing cards include a factors or miles-based rewards program that give you a selection of redemption choices – together with journey, merchandise and reward playing cards – in alternate to your miles or factors. Of the 368 enterprise credit cards we analyzed, we hand-picked 40 playing cards for in-depth particular person critiques. 28 out of these 40 enterprise playing cards in our critiques database embrace a points- or miles-based rewards program. Out of these, 4 assist you to gather airline miles, which you’ll be able to redeem for airfare and different airline rewards, three are cobranded lodge playing cards that supply lodge nights in alternate to your factors and 21 are common rewards playing cards that supply all kinds of redemption choices.

Cash again playing cards, that are well-liked amongst enterprise homeowners due to their simplicity and excessive worth of money again rewards, are much less widespread. They represent 12 out of the 40 enterprise credit cards.

Frequent enterprise rewards classes

  • Factors/miles: 28
  • Common rewards: 21
  • Cash again/assertion credit: 12
  • Airline miles: 4
  • Resort nights: 3

So far as bonus classes for spending go, journey and transportation is by far the most typical bonus class among the many playing cards in our overview set. 17 out of 40 playing cards embrace a bonus class for journey and transportation purchases. Gasoline station purchases can be a well-liked bonus class, as is eating and leisure purchases (12 playing cards). Flat-rate rewards playing cards – which supply the identical rewards charge on each buy – are additionally quite common, constituting 13 out of the 40 playing cards in our overview set.

Spending bonuses for enterprise credit cards

  • Journey and transport: 17
  • Gasoline: 14
  • Flat-rate: 13
  • Eating and leisure: 12
  • Workplace provides: 11
  • Telecommunications: 9
  • Pc and web: 6
  • Different: 4
  • Utilities: 2

The right way to maximize credit card rewards for your corporation

  1. Use credit cards for many of your corporation purchases
    Leverage your corporation buying to earn rewards for your self. Hyperlink all of your payments to your credit card account (however first make sure that they don’t cost finance charges). Additionally, maintain an eye fixed for purchases that may earn further rewards in a bonus class, akin to eating or workplace provides.
  2. Give playing cards to your workers
    As an alternative of reimbursing your workers for his or her purchases, give them worker playing cards by means of your account and encourage them to make use of them for each business-related buy so you may earn the rewards from their purchases.
  3. Juggle rewards playing cards
    Rotate your credit cards so to earn further rewards in all their bonus classes.
  4. Maintain a detailed eye on deadlines and charges
    Make sure that to pay your invoice in full and on time, in order that rates of interest and penalties don’t eat into your income or nullify your rewards.
  5. By no means carry a stability
    Business rewards playing cards have a tendency to hold excessive rates of interest, so you must particularly cautious to not carry a stability.
  6. Use purchasing portals to stack rewards
    You should use on-line purchasing portals akin to Ebates and Swagbucks to earn further money again on high of your card rewards. You can even earn bonus rewards by by means of an issuer’s purchasing portal, such because the Chase Final Rewards mall.
  7. Get bonus factors by means of a program associate
    Some enterprise rewards playing cards allow you to earn bonus factors by means of associate retailers or journey companions. As an example, by means of the American Categorical OPEN program, you may choose to earn a 5 % low cost or 2 factors per greenback on purchases constructed from a choose record of retailers. Additionally, the Starwood Most well-liked Visitor program has a couple of journey companions that supply bonus Starpoints to elite SPG members.
  8. Maintain observe of spending classes and cost due dates
    Including sticky notes to your playing cards to maintain observe of their spending classes, and utilizing spreadsheets to trace your cost deadlines and progress on spending thresholds can maintain quite a bit of rewards worth from falling by means of the cracks.

Or obtain an app that tracks all this info for you. Our Pockets app helps you handle all of your credit card accounts and tells you which ones card to make use of on the time of buy.

What different advantages and perks do enterprise playing cards supply?

Business credit cards sometimes include the identical journey and buy protections as their shopper counterparts in addition to business-specific options which are better-suited to the wants of small enterprise homeowners:

Greater credit limits

Business playing cards include excessive credit limits – normally of $50,000 or larger – which makes them ideally suited for making massive purchases. Some playing cards, such because the American Categorical SimplyCash Plus card, even assist you to exceed your credit restrict when you must make a big buy.

Expense monitoring

The flexibility to trace and handle enterprise spending is mostly a must have for enterprise homeowners. Most enterprise credit cards include expense-tracking options, akin to apps that permit you snap pictures of your receipts and file them on the go, spending experiences, yearly summaries and the power to designate an account supervisor to handle all of it for you.

Integration with accounting software program

Integration with QuickBooks and different varieties of accounting software program is one other widespread characteristic, which may help automate your bookkeeping.

Worker playing cards with spending controls

Business credit steadily assist you to situation playing cards out of your account to your workers – normally free of charge, however generally for a charge – and to arrange particular person limits for every card together with account alerts that will help you maintain a detailed eye in your workers’ card use.

Business reductions

Many enterprise credit cards embrace applications – akin to VisaSavings Edge, Mastercard Straightforward Financial savings and American Categorical OPEN – which offer you a small low cost with a choose record of retailers. The quantity and selection of retailers varies enormously by program. You will get a big financial savings should you occur to buy steadily with a service provider.

Buy protections

You’ll discover the same old buy protections on your corporation credit card, together with insurance coverage in opposition to theft and injury for objects bought along with your card, prolonged guarantee, value ensures and the power to return any merchandise inside a chosen time-frame for a full refund. These protections are particularly helpful should you want buy costly tools for your corporation.

Journey protections

In the event you or your workers do quite a bit of touring for your corporation, you could possibly make good use of the journey protections that steadily come on enterprise credit cards. Journey protections typically embrace journey cancellation insurance coverage, journey accident journey delay insurance coverage, insurance coverage for misplaced and delayed baggage and automobile rental insurance coverage.

Robin Ratcliff is the managing editor for critiques on Earlier than, she labored as a analyst and editor, and nonetheless brings that very same analytical rigor to her card suggestions immediately. You may attain Robin at
Tracy Brackman is a credit card information editor at, writing breaking information tales on card updates and new card launches. You may attain Tracy at
Laura Mohammad is an editor and author at She frequently covers the most effective credit cards and works to convey you probably the most up-to-date evaluation and recommendation. You may attain Laura at

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