Maria Adams, Credit Cards Moderator
@m_adams
A good first business credit card is the Ink Business Preferred® Credit Card. You’ll earn 100,000 points for spending $15,000 in the first 3 months. Another good option is the Capital One® Spark® Cash for Business. You get 2% cash back on all purchases. In addition, there’s a $500 for spending $4,500 in the first 3 months.
A first business credit card is beneficial not only because it allows you to separate your personal and business expenses. A business card often comes with a higher credit limit than a personal credit card. In most cases, activity on your business card won’t affect your personal credit report. However, you’re still personally liable for any debt incurred on a business credit card.
Business cards also come with better rewards. You can make the same purchases you normally would for your business and earn more points. Businesses can also distribute credit cards to employees as expense accounts. All eligible spending on an employee’s business card earns rewards toward your account.
Many good first business cards require good or excellent credit to qualify. However, your personal credit profile will a major factor in determining if you’re ultimately approved for a business credit card.
Here are some good first business cards:
- Chase Ink Preferred: Good (700+) credit required.
- Capital One Spark Cash: Minimum good (700+) credit required.
- Capital One Spark Classic for Business: Accepts limited credit (less than 3 years of credit history).
- HSBC Gold Credit Card: Minimum good (700+) credit required.
One glaring difference between business cards and personal credit cards is that business cards are excluded from protections under the Credit CARD Act of 2009. Most notably, an issuer can arbitrarily raise the interest rate on a business card balance. For personal credit cards, payment has to be at least 60 days before a higher interest rate kicks in. Fortunately, many of the major issuers have implemented some of the CARD ACT’s key provisions for their business cards.
Ultimately, you can check our editors’ latest picks for the best business credit cards for new businesses and weigh your options.
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How do I get my first business credit card?
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