Business credit cards are designed for business accounts instead of personal bank accounts. These cards are available for businesses of all sizes which can help people to build a credit profile to improve their future borrowing terms.
If you are planning to start a small business, you might get benefit from opening a business credit card for yourself. And if you are worried about the issuance of the card, then you don’t have to worry about it. Most of the issuers have lenient qualification requirements and your application can be accepted whether you sell online items, freelance, or run a small business.
One of the most basic advantages of business credit cards is that it has the ability to keep your personal and professional expenses separate, which make things easier for you. Most business credit cards offer rewards, luxurious travel perks, insurances, and much more. In order to have a business credit card, you need to have excellent credit. The process for applying for a business card is similar to a standard credit card application. You can apply for it with or without an employer identification number, which makes it easy for you if you have a small business.
How Do Business Credit Cards Work?
One of the simplest and most attainable methods for supporting your company financially is applying for a business credit card. But before applying for it, you need to know how these cards work.
Business credit cards work same as the personal credit cards do, but they offer higher spending limits with better rewards programs. These little cards are intended to finance your business expenses. Generally, business credit cards have slightly higher interest rates than other traditional loans. The main reason behind this is that credit cards debt is usually unsecured.
These business cards are easy to use and easier to qualify for than other types of traditional loans. And they also have business-centric tools to track your spending in various categories.
There are various types of business credit cards, some have higher annual percentage rates, and some have lower annual percentage rates depending on the creditworthiness of your business. These cards also differ in reward structures to match different businesses’ needs.
After applying for the card, the issuer will request some important information about your business financials; your monthly income, and estimated monthly spending. However, before applying for it, it is necessary to get a firm understanding of your business and its spending needs.
5 Best Business Credit Cards Of 2022:
Following are the best business credit cards of 2022:
Number One: Capital One Spark Cash Plus:
The capital one spark cash plus offers 2% cashback on any type of purchase. Using this card you will score up to $3000 as a welcome bonus. furthermore, you will get $500 if you spend at least $5,000 within 3 months of issuance of the card, and $2,500 if you spend $50,000 and more within the first six months. This card is a straightforward cashback card and there is no predetermined spending limit.
Following are some of the major benefits of this card:
- If you spend more than $200,000 every year, you can get $200 as an annual cash bonus. You can get more benefits with capital one spark cash like,
- No present spending limit.
- No foreign transaction fee.
- Free employee cards.
- 2% cash back on every purchase.
Number Two: Ink Business Preferred Credit Card:
The Ink Business Preferred credit card by Chase is one of the best business credits cards of 2022 for small businesses. This business credit card is best, especially for the companies that spend huge amounts on travel, internet services, and social media search advertising every year. This business credit card has many benefits like; it offers a strong signup bonus, trip cancellation and interruption insurance, and cellphone protection.
Following are some of the reasons to apply for this card:
- It offers an incredible bonus of 100,000 rewards points after spending $15,000 within first three months.
- The annual fee for this card is only $95.
- It offers useful bonus categories for small businesses.
- It gives you cellphone, travel and purchase protection.
- No transaction fees.
- It monitors and protects your business.
Number Three: Divvy Business Credit Card:
The Divvy Business credit card is best for small businesses and for organizations that are growing so quickly. It is ideal for those who want to take control of their business spending. This business credit card is basically for those who have well to excellent credit. But if you have poor credit, don’t worry about it. Divvy business credit card also offers helpful features for those who have poor or no credit at all. The bad news about this card is that currently, it is not offering a signup bonus.
Following are the main benefits of Divvy business credit card:
- This card has no annual fee.
- No extra fees for requesting employee cards.
- No maximum limit on employee cards.
- You can create unlimited budgets with this card according to your business income.
- With Divvy employee cards, you can track the employee spending.
- This card earns rewards on all spending and quite generous in some categories.
- You can redeem your earned points through Divvy online platform.
Number Four: Brex 30 Card:
The Brex 30 card is a charge card for businesses and eligible corporations. This business card offers an interest-free credit line. This business credit card aims to provide a solution by issuing credit limits based on your business’s cash flow. Each purchase with this card must be paid off within 30 days; therefore it is not for those businesses which are looking to carry a balance. Payments will be automatically deducted from your linked business account. The eligibility of this card is based on spending patterns and sales volume, instead of credit score. This business card offers various rewards programs for those who make Brex their only business card.
Following are some of the major benefits of this card:
- No annual fees.
- Personal guarantee is not required.
- Surprising rewards for exclusive users.
- No transaction fees.
- Get discounts on Brex partnered companies.
Number Five: Ink Business Unlimited Credit Card:
The Ink Business Unlimited Credit Card is one of the best business cards of 2022 with no annual fee. Using this card for your business, you can get cashback in the form of chasing ultimate rewards points. This card is best especially for freelancers and small business owners. The bad news about this card is that it has no bonus categories and high balance transfer fees.
Following are the major benefits of this card:
- The sign up bonus on this card is $750
- No annual fees
- Low introductory APR for purchases.
- With fraud protection your transactions from this card will be monitored.
- Get various travel benefits with this card
- You will get cell phone insurance
Also Read: 5 Best Credit Cards For Students With Bad Credit Score
