If you are an entrepreneur and are starting a business, a startup-friendly credit card will provide you with many features that can benefit you. For starters, you can rely on your credit to open an account even before you get a tax ID and EIN.
Some of the best business credit cards for startups will offer various rewards of usually up to 5%, as well as a 0% APR period for up to nine months, or even longer. These are some of the criteria that you should take into consideration when choosing a business credit card.
You should also look at cards that offer ongoing interest rates around 13%. Qualification may only require a credit score of 670. These cards provide both initial and ongoing rewards, as well as some additional benefits such as extended warranty protections, rental car insurance, and other perks that may benefit your business.
That said, here is our pick of the ten best credit cards for startups in the US today in no particular order.
1. American Express Business Card
As the standard for American Express, their Business Card offers numerous benefits to startups. Even though it has a $109 annual fee, there are no spending limits and provide up to 51 days for repayments. By joining their Ascent reward program, you can earn up to 1.5 points for every dollar spent on all purchases and 0.5 points per dollar on utilities and insurance. You can use those points for airline travel expenses, hotels, and holidays, or you can accumulate them for larger, big-ticket items at davidjones.com.au
2. Brex Card for Startups
The Brex credit card is suited for early-stage tech companies with professional funding with a US EIN and a minimum of $100,000 in their corporate bank account. It requires no personal guarantees and has no impact on your credit score. Together with Experian, it provides reports on on-time payments.
It also offers advanced fraud protection, no foreign transaction fees, receipt-capture via text and email, and numerous travel benefits such as 7x on ridesharing services, 4x on travel, as well as 3x on restaurants, 2xon software subscriptions, and 1x on everything else, including big-ticket items.
3. Capital One Spark Cash Select
Capital One Spark Cash Select offers a 1.5% cash back on all spending with no limits, no annual fee, no balance fees, 0% APR for nine months and a 15 – 23% ongoing rate. It is an excellent card for businesses spending less than $19,000 per year which will avoid the annual fee. If you spend $3,000 in the first three months after opening the account, you will get a $200 cash bonus, a one-year extended warranty, as well as 90-day purchase protection against theft of damage.
4. Capital One Spark Miles Select
Unlike the Cash Select version above, Capital One Spark Miles Select is more focused on travel bonuses. But like Cash Select, Miles Select also offers a $200 cash reward on $3,000 spend in the first three months. Also, it provides 1.5x miles on all spending with no limits. You can book airfare or even cancel flights within 90 days. The card also offers 90-day purchase protection and one-year extended warranty protection.
5. Chase Ink Business Cash
The Chase Ink Business Cas card is also a good overall option for startups. It has no annual fee as well as 0% intro APR for the first 12 months. After that, the ongoing rate ranges from 15% to 21%. Also, it offers a 5% cash back on the first $25,000 spent on combined purchases in terms of office supply stores, internet, cable, and phone services. There is also a 2% cash back on the first $25,000 of total purchases at gas stations and restaurants, as well as a 1% cash back on all other purchases with no limits. As long as the account is current, these cash back reward points do not expire.
6. American Express Blue Business Plus
The American Express Blue Business Plus is a good option for startups looking for long-term financing. It offers a 15-month 0% APR and ongoing APR of about 13 to 21%. There are no annual fees and only has a $5 or 3% balance transfer fee. You get a two-times points on all purchases up to $50,000 per year and 1x points on everything after that. It provides two years of extended warranty and purchases protection for up to 120 days.
7. American Express SimplyCash Plus
The American Express SimplyCash Plus allows startups to pick which bonus spending categories earn top rewards. It will pay 3% on up to $50,000 in annual spending for the first year. Also, you will get 1% reward for one of the eight categories you pick (airfare, hotels, car rentals, gas stations, restaurants, social media advertising, shipping, or IT purchases.) There is also a 5% cash back on office supplies and wireless telephone services in the first year and 1% after that.
It provides 0% APR for the first nine months and a variable rate as low as 14.49% ongoing depending on credit. There are no annual fees, and while there is a credit limit, you can spend past it without penalty. You will also have extended warranty, purchase protection, and baggage insurance.
8. Bank of America Business Advantage Cash Rewards
With the Business Advantage Cash Rewards from the Bank of America, you have no annual fees, 3% cash back at gas stations and office supplies, 2% at restaurants, and 1% on all other purchases. There is no limit on cash rewards, and they never expire. If you make $500 in net purchases within the first 60 days, you will also get a $200 statement credit. There is a 0% intro APR and a variable rate of 13.49% to 23.49% going forward.
9. Bank of America Business Advantage Travel Rewards
Like with the other Bank of America credit card above, the Business Advantage Travel Rewards card is similar in terms of APR and has no annual maintenance fee. But instead of the $200 statement credit, you get 25,000 bonus points for $1,000 in net purchases within the first 60 days. You also earn 1.5 points for every dollar spent on all purchases, anywhere, as well as 3 points on travel purchases (car, hotel, airline) booked through the Bank of America Travel Center. These points don’t expire.
10. Capital One Spark Classic for Business
The Spark Classic card from Capital One is the only one on this list that’s available for business owners with a fair credit score of in between 580 and 659 pints. It’s still an unsecured card, it has no transfer or annual fees, and its initial APR is zero. It also provides 1% cash back on all purchases with no caps but has a high ongoing APR of 25.24%.
Each of these credit cards is best suited for entrepreneurs and startup owners, but all of them have their pros and cons in terms of what they have to offer. You need to know what’s most important to you and base your decision on that. Ongoing interest rates charged depend on your good credit and ability to repay all charged amounts.