Business Credit Cards for New Businesses

What is the best card for a new business with no credit history?

@WalletHub

May 13, 2016

Capital One Spark Classic for Business ( http://www.cardhub.com/d/capital-one-spark-classic-89c/ ) is one good option, as it doesn’t charge an annual fee and offers a range of business benefits such as year-end summaries, employee cards at no extra cost and experienced small business customer service. You may also want to check out a personal card such as the Capital One Platinum Card ( http://www.cardhub.com/d/capital-one-standard-platinum-83c/ ), which doesn’t charge an annual fee either.

It’s also important to note that your personal credit standing will have far more of an impact on your card choices than that of your business. You can learn more about that here ( http://www.cardhub.com/edu/business-credit-card-study/ ) as well as check your credit score for free on WalletHub: https://wallethub.com/free-credit-score/ .

Please let us know if you have any other questions! Best of luck!… read more

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I couldn't find a site for someone with poor credit. Where is it?

@WalletHub

March 8, 2016

Unfortunately, there are no business credit cards for people with poor credit. However, we recommend checking out our editors’ picks for the best personal credit cards for bad credit: http://www.cardhub.com/best-credit-cards-for-bad-credit/ .
Using a personal credit card will not increase your personal liability for debt, as you would be personally responsible for repayment with any card branded for business use. Furthermore, a personal credit card will actually give you the benefit of CARD Act coverage, which means the issuer will not be able to increase the interest rate on an existing balance unless you become 60 days delinquent: http://www.cardhub.com/edu/card-act-guide/ .

In addition, you may want to sign up for our sister site WalletHub for free daily updates to your credit score and full credit report: https://wallethub.com/join/ . Hope this helps. Please let us know if you have any more questions.… read more

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I would recommend a credit card for a first time business on an as-needed basis. Often times, cash isn't on hand for things a business needs. As a new business, getting money flowing so you can purchase these items isn't a feasible thing and often times a credit card is the only option. As long as it is kept for strictly business purposes, the credit card can be a great tool to help get off the ground when starting out. I recommend the Enhanced Business Gold Rewards Card from American Express for business owners with decent credit. It is a card from a excellent company where you know what you are getting into.… read more

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I feel that a credit card is not useful to new business owners. I find that a business, when it is first starting, should be interested in accumulating profits, instead of accumulating debt. In addition, should the business fail, the business owner is still liable for the debt, even if the business is closed. If you do get one, do not put personal expenses. Realistically, it would behoove a business owner to research other options for funding, such as government grants, as well as business assistance. However, if an emergency does come about with the business, I would suggest a business loan from a bank as a much better route than a credit card.… read more

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I feel that credit cards are useful but not for first time business owners. What if the business is not successful? Then the owner is stuck with a credit card bill and the fees. I think the company should build and grow first and then once they are secure enough then credit cards could be an option. There are programs available that assist first time business owners.

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I honestly believe that credit cards are useful but can be detrimental for new business owners. In my experience, I have relied little on credit and more on debit because credit builds incredible debt. Some cards are great for acquiring rewards but those still acquire debt too. Maybe the best benefit is that businesses can benefit from using credit cards instead of writing and mailing checks and dealing with the hassle of more paper-based transactions.… read more

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I would caution against getting a business card for your business unless it is warranted. First of all, It is based on your credit, not the business, so if you have bad credit, you may not get a card. If you do get one, do not put personal expenses. Many business owners co-mingle their grocery bills with those of the business, and get themselves in hot water. Also be realistic about your limits; you could be appropriating more than you are bringing in. In many cases a small business loan would probably be better.… read more

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Credit cards are definitely useful for business owners. I use the Ink Cash Business Card from Chase. I love this card because they give you a really large credit limit. This is really useful because can buy all the things you need for your business with the card. Business have several expenses so you would need a large credit line so you can charge them to your card. The Ink Cash Business Card also has a rewards program where you can earn cash back. If you use this for your business you will get cash back pretty fast because you’ll be gaining points quicker and can redeem for the $25 cash back option.… read more

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A friend of mine recently (about a year ago) opened his own business. He had saved for years and when he finally opened his doors he was strapped financially. The business was (is) doing well but there were a few minor costs that he didn't expect and I know we used a credit card to take care of the unexpected costs. His interest rate wasn't great but he paid off the cost quickly to avoid over paying by much. He also earned quite a bit of bonus cash because of the larger purchases which more than made up for the money he paid in interest. I tell this story because I think if used responsibly a credit card for small business owners can be a great asset and a safety net in certain situations. But it is important to be responsible with its use.… read more

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I think that credit cards are a great asset for new business owners, provided they are responsible enough to handle them. It's easy to let yourself fall into the trap that credit cards carry, which is to spend money frivolously – sometimes on things that just aren't necessary – without having the cash up front, only to find yourself drowning in debt later on. However, a responsible business owner may find that it's one of the most important tools in his/her arsenal. Starting off, it's easy to run out of money, and when it comes time to order necessary supplies, credit cards can be a life saver. A particularly notable card is the Gold Delta SkyMiles Business Credit Card from American Express. With an average interest rate, a low annual fee of only $95 after the first year, and a 30,000 mile bonus with the purchase of $1000 or more in the first 3 months, it's guaranteed to be a great card for any new business owner.… read more

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I think that it is a great business decision for new business owners to have a credit card. First of all it makes it a lot easier to track your expenses and inventory and keep it separate from your regular living expenses and transactions. As an accountant, I can personally attest to this! If a person is able to get a credit card with a high enough limit without using a bank for a business loan it is even better because many cards offer 0 interest rates for a promotional period. This gives you time to pay it off when your profits start rolling in as opposed to getting stuck with an interest rate from the bank right off the bat.… read more

Cou Pon @jay_soto_7

December 26, 2014

I agree that having a credit card for your small business comes in very handy in helping you stay organized. Just as long as you don't start mixing business with personal expenses. Credit cards can be a scary thing for some people but it's also a great way to build a strong foundation when it comes to responsibilites.

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Not only do I think that credit cards are useful to new business owners, but I believe that they are an essential part of any business that wishes to be financially responsible and stable. Because new business owners more often than not lack some capital, having a credit card to make important purchases is a great thing. Without a credit card, a business owner would have to either pay for all business purchases out of his or her own pocket or would have to look into getting a loan from a bank. For someone who is just starting a business, a card with zero interest for at least a few months would be for the best, since most businesses don't really start making any profits until a certain point.… read more

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I believe that credit cards are very helpful for new business owners. They are just getting started and the money that they need to get things going is hard to come by. Especially since they will be spending money before they will be taking in money. So it allows them to spend money and make payments.

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