Function Over Flair
If you're a small business owner looking to apply for your first business credit card, remember ... function over flair!
A business credit card is not intended for show and tell!
In the startup or infancy stage, you don't need a fancy card with a hefty annual fee unless you can get the most bang for your buck (read: the benefits & rewards will actually pay for themselves year over year). You can always apply for a different card as your business grows and your business needs change and align with those types of cards.
Consider cards with no annual fee + cash back (usually comes in the form of a statement credit) + benefits & rewards that align with your business needs (read: rewards that your business can actually use).
Many cards include sign up bonus offers so be sure to shop around for the best offers but again the card must align with your business needs.
There may be a case where the right card for your business comes with an annual fee. Aim for a low annual fee and be sure the benefits & rewards can pay for that annual fee year over year.
Some cards may waive the annual fee for the first year but that doesn't justify signing up for a card that doesn't align with your business needs. You don't want to be canceling cards annually plus this may hurt you in the long-term.
Business credit cards are intended for legitimate business purchases. Do not use business credit cards or co-mingle them with personal expenses. Most cardholder agreements include language that specifically states business credit cards are to be used for business purchases. Plus, co-mingling business and personal expenses risks piercing the corporate veil.
Note liability on business credit cards is typically joint and several. Don't rack up expenses on a business credit card that you can't afford and can't pay in full at the end of each statement period.
To start your search for a business credit card, consider the card issuers of any personal credit cards you carry. Many card issuers have a business unit and offer business credit cards. An existing cardholder relationship may offer a simplified application and approval process plus a more favorable credit line provided you have a solid personal credit history.
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Looking for a business credit card with cash back, expanded buying power, and no annual fee?
Check out the American Express Blue Business Cash Card. Sign-up using our referral link for a bonus offer.
Limited time offer! Terms & conditions apply. See offer for details.