Every startup needs a launchpad, a way to gain momentum and reach new heights. While traditional loans might be the rocket fuel for established companies, a business credit card can be the initial spark for entrepreneurs without a track record.
Whether you’re a sole proprietor or a new LLC with plans for expansion, a business credit card can be a great asset. Business cards let you separate your personal and work expenses, earn rewards, build business credit, and more. They’re also popular with startups, which often have trouble qualifying for term loans but are likely to qualify for a credit card.
Every card is different, so it’s important to research your options and pick the right one for your new business. Here are some of the best business credit cards for startups.
What is a business credit card?
A business credit card is a type of card a company can use for business expenses. They work a lot like personal credit cards: Your business gets access to a line of credit and can make purchases, acquire cash advances, and handle balance transfers as needed.
Repayment is also flexible. You can make minimum payments each month, pay the entire balance, or do something in between. The credit line replenishes as you make payments, allowing you to borrow again without submitting a new application. Many business credit cards also come with rewards programs and valuable perks, along with the ability to build business credit over time.
Credit cards for startups require more collateral upfront. You’ll likely need to provide a personal guarantee that you (the business owner) are personally liable for paying the card balance if your business defaults.
How to choose a business credit card
- Consider business goals
- Add up fees and APR
- Assess rewards program
- Look for additional perks
- Check your credit
When comparing your options, here are a few areas to consider:
Consider business goals
Cards often have category-specific features that can help you meet your business’s goals. For example, if you want help managing cash flow, look for cards with detailed reporting features and individual spending limits on employee cards.
Looking to build savings? Find a card that provides cash back—you can add it to a business savings account.
Add up fees and APR
In general, credit cards tend to have higher annual percentage rates (APRs) than other types of debt—typically around 30%. But you’ll only pay interest if you carry a balance from one month to the next. If you think you’ll need to do this, choose a credit card with a low APR.
Review any fees and add those to your anticipated interest payments to figure out whether the benefits of using the card outweigh the costs.
Assess rewards programs
Many business credit cards offer rewards on different spending categories, whether it’s for travel, office supplies, or another expense. Startups might not have a spend history yet, but you can review your business budget and look for potential crossover with the cards you’re considering.
Some cards also offer welcome bonuses, where you earn points or cash after spending a certain amount within the first few months of account opening. This type of bonus could be a perfect fit for businesses with startup expenses.
Look for additional perks
Check out the other benefits the credit card offers, such as trip cancellation insurance, extra employee cards, or budget-tracking features. Many business credit cards come with these basic perks, while a few offer more luxurious benefits in exchange for high annual fees (e.g., airport lounge access, concierge services, or enhanced travel rewards and credits).
Check your credit
Since startups are brand new by nature, they usually haven’t established business credit or built a track record of profitability. For that reason, these card issuers often allow business owners to qualify based on their personal credit history.
Generally, having excellent personal credit and a strong payment history helps you qualify for cards with high credit limits, robust rewards programs, and benefits. There are also other business credit cards that cater to business owners with lower credit scores.
7 best business credit cards for startups
- Shopify Credit
- American Express Blue Business Cash Card
- Capital One Spark Classic for Business
- Ink Business Preferred credit card
- Business Platinum Card from American Express
- US Bank Business Platinum Card
- Business Advantage Unlimited Cash Rewards
1. Shopify Credit
Shopify Credit doesn’t require a credit check or personal guarantors, making it a strong option for startups with no credit history. Ultimately, it’s designed to provide you with a credit line based on your sales rather than your credit score; this means that as your business’s performance improves, your credit limit will increase. It also offers flexibility in how you pay your balance, allowing you to use a percentage of daily sales to settle the remaining amount.
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APR: None.
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Annual fee: None.
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Reward program: Up to 3% cash back on up to $100,000 in eligible purchases per year, 1% back on everything else.
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Benefits: Tailored credit limits that grow with your business, access to credit right away via a virtual card on approval, option to pay your balance from a percentage of daily sales, extended purchase protection, free employee cards, auto collision and damage waiver, travel and emergency insurance, and Norton LifeLock ID Navigator.
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Welcome bonus: None.
2. American Express Blue Business Cash Card
The American Express Blue Business Cash Card keeps costs low for startups, offering a 0% intro APR, no annual fee, and a $250 welcome bonus with a low spending requirement.
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APR: 0% for the first 12 months, then 17.49% to 25.49% afterward.
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Annual fee: None.
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Reward program: 2% cash back on up to $50,000 in purchases per year, then 1%.
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Benefits: Car rental loss and damage insurance, extended warranty on eligible purchases, access to special events, Global Assist hotline, and more.
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Welcome bonus: $250 after spending $3,000 within the first three months.
3. Capital One Spark Classic for Business
The Capital One Spark Classic for Business credit card accepts a “fair” credit rating—typically a credit score between 580 and 669—making it a good fit for business owners with a limited credit history.
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APR: 29.74%.
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Annual fee: None.
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Reward program: Unlimited 1% cash back on every purchase, 5% on hotels and rental cars booked through Capital One Travel .
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Benefits: TSA PreCheck or Global Entry credit, no foreign transaction fee, budget-tracking features, and more.
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Welcome bonus: None.
4. Ink Business Preferred credit card
The Ink Business Preferred credit card blends a generous package of rewards and benefits with a relatively low annual fee.
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APR: 20.24% to 26.24%.
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Annual fee: $95.
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Reward programs: Three points for each dollar you spend on shipping, advertising, internet, phone services, and travel. The rate applies to the first $150,000 in combined purchases in these categories each year. Unlimited one point per dollar spent on all other eligible purchases.
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Benefits: Higher value when you redeem points through Chase Travel, free employee cards, no foreign transaction fees, travel insurance, ability to build business credit, and more.
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Welcome bonus: 90,000 bonus points after spending $8,000 within three months of account opening. This bonus is worth $1,125 when you redeem for travel through the Chase Travel portal.
5. Business Platinum Card from American Express
The Business Platinum Card from American Express has no preset spending limit and plenty of travel-related perks. This makes it a good option for companies planning major expenses and routine business trips.
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APR: 18.49% to 27.49%.
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Annual fee: $695.
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Reward programs: Five points per dollar spent on flights and prepaid hotels booked through AmexTravel.com, one and a half points per dollar spent on eligible business purchases, and one point per dollar spent on all other eligible purchases.
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Benefits: Statement credits, status upgrades, American Express Global Lounge Collection access, expense management tools, and more.
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Welcome bonus: 150,000 Membership Rewards points after spending $20,000 in eligible purchases within three months of account opening.
6. US Bank Business Platinum Card
US Bank Business Platinum Card lacks a rewards program, but it’s a good fit for businesses that might carry a balance and want to limit overspending.
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APR:0% for 18 months, then 16.99% to 25.99%.
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Annual fee: None.
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Reward programs: None.
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Benefits: Employee card controls and extended payment plans.
7. Business Advantage Unlimited Cash Rewards
The Business Advantage Unlimited Cash Rewards card is a secured credit card. Bank of America will periodically review your account and may move you from the secured card to a regular card after you show responsible use. This helps you establish business credit.
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APR: 27.49%.
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Annual fee: None.
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Reward programs: Unlimited 1.5% cash back on all purchases.
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Benefits: Travel insurance, free access to your business credit score and credit report, expense management tools.
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Welcome bonus: None.
Best business credit cards for startups FAQ
What is the best business credit card for startups?
Not all credit cards work for every startup. The right card for you depends on your business goals, typical expenses, and whether you think you’ll carry a balance from month to month.
Can a new LLC get a business credit card?
Yes. If an LLC hasn’t built business credit yet, the business owner may qualify for a card account based on their personal credit.
Can I apply for a business credit card with no revenue?
Yes, but when you apply, the credit card issuer will likely ask about your personal income. When you build your business revenue, you can report it to the card issuer later and see if it will reevaluate your credit limit.
What credit score do you need for a business credit card?
Most card issuers do a hard credit check and generally prefer good credit or better (i.e., a FICO score of 670 or above). If you have less-than-ideal credit, you can apply for a secured card, where your deposit functions as your credit limit.
