No matter the size or industry, startup businesses often face a lot of initial expenses, like investing in office equipment or traveling to meet investors. Having a business credit card allows you to cover the costs without dipping into your personal savings and can help you keep your business expenses separate from personal ones.
Applying for a business credit card can be simpler than applying for a small business loan, plus it can provide a continuing line of credit as long as you use the card responsibly. Many business cards also offer additional benefits and perks you can take advantage of as your business grows. A startup’s expenses can vary, so it’s important to choose a credit card that works for the needs of the business. Here’s how to choose the best one for yours.
If you’re a small business starting out, two things you’ll likely need are office supplies and the internet, which makes Chase Ink Business Cash a good choice. The credit card lets you earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year, then 1%.
You also earn 2% cash back on the first $25,000 spent at gas stations and restaurants each account anniversary year, then 1%. As a bonus, you can transfer rewards between your other Chase Ultimate Rewards cards (business or personal) for reward redemption.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% Intro APR on Purchases for 12 months
- Regular APR
- 18.49% – 24.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
If you’re a small business starting out, two things you’ll likely need are office supplies and the internet, which makes Chase Ink Business Cash a good choice. The credit card lets you earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year, then 1%.
You also earn 2% cash back on the first $25,000 spent at gas stations and restaurants each account anniversary year, then 1%. As a bonus, you can transfer rewards between your other Chase Ultimate Rewards cards (business or personal) for reward redemption.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% Intro APR on Purchases for 12 months
- Regular APR
- 18.49% – 24.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card* lets you tailor how you earn rewards. Considering freelancers’ expenses can vary depending on their specific clients or gigs, the added reward flexibility could be valuable.
The card lets you choose a 3% cash back category each month to pair with its static 2% cash back on dining on the first $50,000 in combined purchases each calendar year (then 1%).
The 3% rewards category defaults to gas stations and EV charging, making the card a great option for Uber or Lyft drivers. But you can choose to earn rewards at office supply stores, for travel, on TV or wireless services, computer services, or for business consulting. Plus, you get 1% cash back on all other purchases.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% for 9 billing cycles for purchases
- Regular APR
- 18.49% – 28.49% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 4% of the amount of each transaction
The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card* lets you tailor how you earn rewards. Considering freelancers’ expenses can vary depending on their specific clients or gigs, the added reward flexibility could be valuable.
The card lets you choose a 3% cash back category each month to pair with its static 2% cash back on dining on the first $50,000 in combined purchases each calendar year (then 1%).
The 3% rewards category defaults to gas stations and EV charging, making the card a great option for Uber or Lyft drivers. But you can choose to earn rewards at office supply stores, for travel, on TV or wireless services, computer services, or for business consulting. Plus, you get 1% cash back on all other purchases.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% for 9 billing cycles for purchases
- Regular APR
- 18.49% – 28.49% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 4% of the amount of each transaction
If your startup requires you to travel frequently, the Capital One Spark Miles for Business* could be the best business credit card for you. The card includes an application fee credit for Global Entry or TSA PreCheck, which saves you time and money on trips, and it helps offset the card’s $95 annual fee ($0 intro annual fee for the first year).
You can earn 5x rewards on hotels and rental cars booked through Capital One Travel, plus 2x miles on all other purchases with no limits. Plus, Capital One kick starts your entrepreneurial journey with a welcome bonus of 50,000 miles (equal to $500 in travel) when you spend $4,500 within the first three months from account opening.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 26.24% (Variable)
- Balance Transfer Fee
- $0 at this Transfer APR
If your startup requires you to travel frequently, the Capital One Spark Miles for Business* could be the best business credit card for you. The card includes an application fee credit for Global Entry or TSA PreCheck, which saves you time and money on trips, and it helps offset the card’s $95 annual fee ($0 intro annual fee for the first year).
You can earn 5x rewards on hotels and rental cars booked through Capital One Travel, plus 2x miles on all other purchases with no limits. Plus, Capital One kick starts your entrepreneurial journey with a welcome bonus of 50,000 miles (equal to $500 in travel) when you spend $4,500 within the first three months from account opening.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 26.24% (Variable)
- Balance Transfer Fee
- $0 at this Transfer APR
The U.S. Bank Business Triple Cash Rewards World Elite Mastercard®* stands out thanks to its 0% intro purchase APR for 15 billing cycles (then 19.24% to 28.24% variable APR). This makes it a perfect card for startups that may have extra expenses in the first year of business. Make a plan early on how you’ll pay off the card to avoid interest charges.
One of the card’s other standout features is that there’s no cap on rewards. Earn 5% on prepaid hotels and car rentals booked through the Rewards Center, 3% on eligible purchases at gas stations, office supply stores, cell phone providers and restaurants, and 1% on other purchases.
- Intro Balance Transfer APR
- 0% intro on balance transfers for 15 Billing Cycles
- Intro Purchase APR
- 0% Intro APR for 15 billing cycles on purchases
- Regular APR
- 19.24% – 28.24% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
The U.S. Bank Business Triple Cash Rewards World Elite Mastercard®* stands out thanks to its 0% intro purchase APR for 15 billing cycles (then 19.24% to 28.24% variable APR). This makes it a perfect card for startups that may have extra expenses in the first year of business. Make a plan early on how you’ll pay off the card to avoid interest charges.
One of the card’s other standout features is that there’s no cap on rewards. Earn 5% on prepaid hotels and car rentals booked through the Rewards Center, 3% on eligible purchases at gas stations, office supply stores, cell phone providers and restaurants, and 1% on other purchases.
- Intro Balance Transfer APR
- 0% intro on balance transfers for 15 Billing Cycles
- Intro Purchase APR
- 0% Intro APR for 15 billing cycles on purchases
- Regular APR
- 19.24% – 28.24% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
If you’re embarking on a new business venture but your own credit is lacking, consider the Capital One Spark Classic for Business*. Business owners with a less than stellar personal credit history can earn 1% rewards with no expiration date for the life of the account and 5% cash back on hotels and rental cars when booked through Capital One Travel, all with no annual fee.
Be aware of the high 30.74% variable APR. It’s a good idea to get this card only to build credit and if you can pay your balance in full each month.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.74% (Variable)
- Balance Transfer Fee
- N/A
If you’re embarking on a new business venture but your own credit is lacking, consider the Capital One Spark Classic for Business*. Business owners with a less than stellar personal credit history can earn 1% rewards with no expiration date for the life of the account and 5% cash back on hotels and rental cars when booked through Capital One Travel, all with no annual fee.
Be aware of the high 30.74% variable APR. It’s a good idea to get this card only to build credit and if you can pay your balance in full each month.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.74% (Variable)
- Balance Transfer Fee
- N/A
If you don’t want to think about your business rewards credit card, the American Express Blue Business Cash Card could be your best solution. Earn 2% cash back on all eligible purchases up to $50,000 per calendar year, then 1%.
Rewards are applied directly to your credit card statement each month, reducing your total balance. Keep in mind reward credits do not apply toward your minimum balance payments.
The card also offers an introductory 0% APR on purchases for 12 months from account opening (18.49% to 26.49% variable APR thereafter), which means you can take time to get your business rolling without having to worry about interest charges.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% on purchases for 12 months from date of account opening
- Regular APR
- 18.49% – 26.49% Variable
If you don’t want to think about your business rewards credit card, the American Express Blue Business Cash Card could be your best solution. Earn 2% cash back on all eligible purchases up to $50,000 per calendar year, then 1%.
Rewards are applied directly to your credit card statement each month, reducing your total balance. Keep in mind reward credits do not apply toward your minimum balance payments.
The card also offers an introductory 0% APR on purchases for 12 months from account opening (18.49% to 26.49% variable APR thereafter), which means you can take time to get your business rolling without having to worry about interest charges.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% on purchases for 12 months from date of account opening
- Regular APR
- 18.49% – 26.49% Variable
With the potential for a higher credit limit and unlimited company cards, the Capital On Tap Business Credit Card* is perfect for a rapidly growing startup that needs flexibility.
The card allows you to set spending limits for employees and can automatically sync with accounting software, making it easier to manage your money. Earn 1.5% cash back on all purchases, with no limits and no annual fee.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 17.74% – 35.99% variable APR
- Balance Transfer Fee
- N/A
With the potential for a higher credit limit and unlimited company cards, the Capital On Tap Business Credit Card* is perfect for a rapidly growing startup that needs flexibility.
The card allows you to set spending limits for employees and can automatically sync with accounting software, making it easier to manage your money. Earn 1.5% cash back on all purchases, with no limits and no annual fee.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 17.74% – 35.99% variable APR
- Balance Transfer Fee
- N/A
If you are launching an e-commerce business, the Chase Ink Business Preferred Credit Card may be the card for you. It offers 3x points for every dollar spent on travel, shipping, advertising with social media sites and search engines, and internet, cable and phone services up to $150,000 in combined purchases each account anniversary year, and 1x after that. You also earn 1x points on all other purchases.
Even with the $95 annual fee, this card could pay for itself in the first year of your e-commerce business. Plus, you have the benefit of combining points with your other Chase business or personal credit cards through the Ultimate Rewards portal, or transferring points at a 1:1 rate to Chase travel partners.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 21.24% – 26.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
If you are launching an e-commerce business, the Chase Ink Business Preferred Credit Card may be the card for you. It offers 3x points for every dollar spent on travel, shipping, advertising with social media sites and search engines, and internet, cable and phone services up to $150,000 in combined purchases each account anniversary year, and 1x after that. You also earn 1x points on all other purchases.
Even with the $95 annual fee, this card could pay for itself in the first year of your e-commerce business. Plus, you have the benefit of combining points with your other Chase business or personal credit cards through the Ultimate Rewards portal, or transferring points at a 1:1 rate to Chase travel partners.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 21.24% – 26.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
What’s a business credit card?
Like a personal credit card, a business credit card lets you charge expenses and pay for them at a later date -- to avoid interest charges and credit card debt, you should pay off your balance in full and on time each month. However, the best business credit cards offer benefits that are advantageous for startups.
Business credit cards typically let cardholders earn rewards, such as bonus cash-back categories for office supplies or internet service, that can be helpful for new businesses. They may also offer an introductory 0% APR and higher credit limits that can help give a startup business time to establish itself while still covering initial costs.
Some cards integrate with your accounting software to make it easier to track business expenses. You also may be able to get linked employee cards that let you set spending limits.
Pros and cons of business cards for startups
Before getting a business credit card, consider these benefits and drawbacks.
Pros
Separates business expenses from personal expenses
Helps with tracking and managing expenses for your business
Helps build a credit history for your business
Can earn rewards tailored to your business
Option to get employee cards that you can manage
Cons
You’re typically personally responsible for the debt, even if the business fails
If you don’t pay the card on time or run up a balance, it could hurt your personal credit score
How does a startup qualify for a credit card?
The age of your business doesn’t matter -- any business, including a startup or a solo entrepreneur, can qualify for a business credit card. If you don’t have a business credit history, the lender will use your personal credit score and credit history to help evaluate your creditworthiness.
By getting a business credit card, you’ll be able to start developing a credit profile for your business. But remember that there’s a good chance you’ll still be personally liable for any debt incurred on business credit cards.
Who should get a business credit card?
If you have a business of any type, it’s worth considering a business credit card. You don’t have to have a corporation, business license or an LLC to open a business credit card. Even if you are a sole proprietor or gig worker and file your taxes as “self-employed” on your personal tax forms, you can still get a business credit card.
A business credit card helps you separate business and personal expenses to track profitability. You also may be able to deduct interest on business expenses for tax purposes.
Can you use your personal credit card for your startup business?
There are no rules or laws that say you can’t use a personal credit card for your startup business. But it’s typically not the best choice for business owners.
Ideally, you won’t carry a balance and pay interest on your business credit card. But if you do, interest on business expenses is tax deductible. This applies whether you use a business or personal card, but it’s much easier to track if you use your business card only for business expenses.
Besides the tax savings, there are other reasons not to use a personal credit card for business expenses:
- It’s harder to track expenses for accounting purposes.
- It weakens your personal and business legal protections if you mix expenses.
- It won’t help build business credit.
- You may miss out on specific business card rewards and benefits.
- You can’t get linked employee cards; you’d have to add them as authorized users on your personal card.
How to choose a business credit card for your startup
Choosing a business credit card is similar to choosing a personal credit card, including weighing the costs and benefits a card can offer your business:
- Check the eligibility requirements. Check for pre-approval offers first to find out which cards you’re eligible for without hurting your personal credit score. Note that pre-approval does not necessarily guarantee approval.
- Decide which rewards are valuable to your business. Are travel rewards useful for your jet-setting startup or would cash rewards be more helpful?
- Compare welcome offers. You could be leaving hundreds of dollars on the table if you choose a card with a welcome offer that doesn’t fit your spending habits. Make sure you’ll meet the spending minimums without overspending to earn the bonus.
- Check the APR. If you know you’ll have expenses upfront, you can save money on interest charges by using a card with an intro 0% APR, so compare introductory periods. If you think there’s a chance you’ll carry a balance, pay attention to the regular APR, as it could add up to thousands of dollars a year in finance charges.
- Compare the fees. If you plan to travel internationally, look for a card without foreign transaction fees. You can avoid late fees by making on-time payments, but you should still be aware of them. If there’s an annual fee, make sure the rewards you’ll earn are worth the cost.
- Consider other perks that could help your business. Does the card provide purchase protection, travel insurance or other benefits that could be valuable to your business now or in the future?
How to make the most out of your startup business credit card
Follow these tips to make the most of your new credit card:
- Use the card responsibly to help your business build credit. Pay your bills on time and in full to keep credit utilization low and strengthen your startup’s payment history.
- Use the intro APR period to cover upfront expenses. Starting a business can be expensive. If you have a 0% intro APR, you can delay laying out money until you start showing a profit, ideally.
- Redeem rewards strategically. Consider how using your rewards could help you pay down your balance, save on travel expenses or reward your employees. Find out if there are expiration dates so you don’t waste any rewards.
- Take advantage of business-specific perks. Compare what other perks a business card offers that could help your startup, like money management tools. If you have employees or want to plan for future employees, consider a business credit card that offers free employee cards.
How to apply for a business credit card
You can follow the links above or apply directly on the credit card issuer’s website. Here’s a helpful guide for how to apply for a business credit card; you’ll need the following to get started when applying for a business credit card:
- Your legal business name and the name you want printed on the card
- Your business address, phone number and email
- Your federal tax ID number (or Social Security number if you’re a sole proprietor)
- The type and structure of your business
- Annual business revenue and expenses
- The number of employees
FAQs
If your personal credit ranks as poor to fair, you may want to consider a secured business credit card. But there are also unsecured cards that are available if you have less than stellar credit, including the Capital One Spark 1% Classic.
The Chase Ink Business Cash Credit Card lets you earn rewards in categories that startup businesses often need, including purchases at office supply stores, gas stations and restaurants, as well as other helpful perks and benefits for new businesses.
If you have bad personal credit or no credit history, you can get a secured business card and make the monthly payments on time to begin building your credit. If your personal credit score isn’t where you want it to be, here are some expert tips to help you raise your credit score.
If you don’t pay your business credit card payments on time, it can damage your personal credit score. You will usually have to sign a personal guarantee, which holds you personally liable for charges on your business credit card.
Some issuers will also report your business card credit utilization and payment history to the three credit bureaus (Experian, TransUnion and Equifax), which means it can be used to calculate your personal credit score. In that case, on-time payments and a low credit utilization ratio can help your personal credit score.
You can use a business credit card for personal expenses. But this will make it harder to track your business purchases and profitability. It also makes reporting harder at tax time and can weaken your legal protections by mixing personal and business expenses. It’s always best to keep personal and business funds separate.
Methodology
CNET reviews credit cards by comparing them across set criteria. For this review, we looked specifically at perks and rewards tailored to business owners of every size.
We also evaluated benefits, balance transfer offers and introductory APRs, as well as interest rates.
Other cards we researched
- Ink Business Unlimited® Credit Card
- Bank of America® Platinum Plus® Mastercard® Business card
- Capital One Spark Cash Select
- Ink Business Premier® Credit Card
- American Express® Business Gold Card
- U.S. Bank Business Leverage® Visa Signature® Card
*All information about the Bank of America Business Advantage Customized Cash Rewards Mastercard, Capital One Spark Miles for Business, U.S. Bank Business Triple Cash Rewards World Elite Mastercard, Capital One Spark Classic for Business and Capital On Tap Business Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
