For small business owners, the line between personal expenses and business expenses is blurry. After all, so much of your personal time, money, and effort goes into your business, and your business can be your life! Plus with all of the work that goes into running a small business, it may seem easiest to just use your current credit card for whatever expense becomes necessary to keep your business running. But if you use your personal credit card for business expenses, you could be missing opportunities to earn rewards! Here are the top reasons why you should get a small business credit card.
1. Keeping Track of Business Expenses
Come tax time, it’s important to know which expenses are for your business and which are personal. Your business expenses can be tax deductible, after all! If you’re using the same credit card for both business and personal, it’ll be much harder to separate your finances, and you could end up making a costly mistake. Why take the risk? Getting a small business credit card and using it only for business expenses will keep your accountant happy – and could let you earn rewards at the same time!
2. Building Business Credit
Did you know that businesses have a credit report, just like people do? Getting a small business credit card and using it responsibly helps to build your business’s credit history. This can set your business up for success if you ever need additional credit, want to lease equipment, or buy a building!
3. Rewards Targeted for Businesses
No two businesses are alike, but many businesses have something in common: the necessity for expenses such as office supplies, utilities, advertising, and more! Small business credit cards have unique rewards categories that often target common business expenses. Therefore, using a small business credit card can allow you to earn additional rewards in these categories more than a personal credit card would. Take a look at your budget and see you’re spending in a category that earns big with a small business credit card!
4. Credit Cards for Employees
Depending on the size of your small business, you might need to hire employees. Many business credit card accounts have the option to get employee cards at no additional cost, allowing your employees to make necessary business purchases. You can track employee spending, set credit limits for employees, and more! Giving your own personal credit card to your employees is risky, and doesn’t allow you track spending for individual employees. That’s why it makes sense to get a small business credit card account.
Are you ready to get a small business credit card? Check out some of our favorite options below!
American Express® Business Gold Card
- Annual Fee: $295 ($375 if application is received on 2/1/24 or later)
- Intro Offer: 70,000 points if you spend $10,000 on eligible purchases during the first 3 months after account opening.
- Rewards: 4x Membership Rewards® points on the two categories that your business spent the most in each month; 1x points on other purchases
- Other Perks: No limit on the amount of points you can earn and points don’t expire as long as your account is in good standing.
The American Express® Business Gold Card matches the spending habits of your business by allowing you to earn 4x the Membership Rewards® points on the two categories that your business spends the most in each month for up to the first $150,000 spent during the calendar year. This is great if your spending habits change frequently and you don’t want to be stuck with a card that doesn’t offer high rewards in certain categories. Plus you can still earn 1x points on other eligible purchases. If you use your rewards points on travel, you can get 25% of your points back if you book eligible flights on American Express Travel (for up to 250,000 points back each calendar year). However, you won’t get points back for non-travel related redemptions, making this card a better choice for those who travel frequently. Terms Apply.
The Business Platinum Card® from American Express
- Annual Fee: $695
- Intro Offer: 120,000 points when you spend $15,000 on eligible purchases during the first 3 months after account opening
- Rewards: 5x Membership Rewards® points on prepaid hotels and flights booked on AmexTravel.com; 1.5x points on eligible purchases of $5,000 or more everywhere, or at US construction material and hardware suppliers, shipping providers, and electronic goods retailers and software and cloud system providers, for up to $2 million on purchases per year; 1x point per dollar spent on eligible purchases
- Other Perks: Airport lounge access; Ability to unlock more than $1,000 in credits annually on a variety of business purchases.
The Business Platinum Card® from American Express is a luxury card that offers impressive perks such as airport lounge access at over 1,400 airports, the ability to unlock more than $1,000 in credits annually on a variety of business purchases, and generous earning capabilities for rewards. If you have to travel frequently for your small business, then getting a business card with great travel rewards such as The Business Platinum Card® from American Express can provide a huge bonus. With The Business Platinum Card® from American Express, you can earn 5x the Membership Rewards® points on prepaid hotels and flights booked on AmexTravel.com! Plus you can also earn 1.5x points on eligible purchases of $5,000 or more everywhere, or at US construction material and hardware suppliers, shipping providers, and electronic goods retailers and software and cloud system providers, for up to $2 million on purchases per year, and 1x point per dollar spent on eligible purchases. The annual fee is pricy: $695. But with its rewards earning capability and travel perks, The Business Platinum Card® from American Express can turn your work trip from boring to luxury! Terms Apply.
Ink Business Cash® Credit Card
- Annual Fee: $0
- Intro Offer: $900 Bonus Cash Back if you spend $6,000 on eligible purchases during the first 3 months after account opening
- Rewards: 5% Cash Back on the first $25,000 spent in combined purchases at Office Supply Stores and on Phone Services, Cable, and Internet during each Account Anniversary Year; 2% Cash Back on the first $25,000 spent in Combined Purchases at Restaurants and Gas Stations during each Account Anniversary Year; unlimited 1% Cash Back on other purchases.
- Other Perks: 0% Intro APR for 12 months on new purchases (with reg_apr,reg_apr_type thereafter)
The Ink Business Cash® Credit Card allows you to earn 5% cash back on office necessities such as supplies, phone, cable, and internet, on the first $25,000 spent annually, and all for no annual fee! In addition, you can earn 2% cash back on the first $25,000 spent annually at restaurants and gas stations, and an unlimited 1% cash back on other purchases. If you spend $6,000 on eligible purchases during the first 3 months after account opening, you can also earn an additional $900 bonus cash back! Those who are planning on making big purchases for their small businesses may also want to take advantage of their 0% Intro APR for 12 months on new purchases (with reg_apr,reg_apr_type thereafter). The downsides of this card? Those who anticipate spending more than $25,000 may be deterred by the cap, and you have to earn a minimum of 2,000 points before they can be redeemed. But for the amount of rewards you can earn and with no annual fee, the Ink Business Cash® Credit Card is a great choice for small businesses!
Capital One Spark Miles for Business
- Annual Fee: Waived for the first year, then $95 Annually
- Intro Offer: 50,000 miles if you spend $4,500 on purchases during the first 3 months after account opening.
- Rewards: Unlimited 5x miles on rental cars and hotels booked through Capital One Travel; Unlimited 2x miles on every purchase, everywhere
- Other Perks: Miles don’t expire for the life of the account; Free employee cards; Get a statement credit for either the Global Entry Application Fee ($100) or the TSA PreCheck® application fee ($85).
If your business doesn’t spend heavily in any one particular category, then you might want a card with a decent unlimited earning rate with no category restrictions. That’s where the Capital One Spark Miles for Business card shines, with 2x miles on every purchase, everywhere! Plus you can also earn an unlimited 5x miles on rental cars and hotels booked through Capital One Travel. And because miles earned using the Capital One Spark Miles for Business card are flexible, you can redeem them for any travel-related purchase, or transfer them to one of over 15 different loyalty programs! The annual fee for this card is waived for the first year, but after that, it will be $95.
Ink Business Preferred® Credit Card
- Annual Fee: $95
- Intro Offer: 100,000 points if you spend $8,000 on purchases during the first 3 months after account opening.
- Rewards: 3x Points per $1 spent on the first $150,000 in Travel and other select categories for each account anniversary year; Unlimited 1x Points per $1 spent on all other purchases
- Other Perks: Points have 25% more value when redeemed for travel purchase through the Ultimate Rewards portal
With a 25% bonus when you redeem points for travel purchases through the Ultimate Rewards portal, the Ink Business Preferred® Credit Card helps you get even more value from your points! Just the intro offer alone is a value of $1,000 cash back, or $1,250 when redeemed for travel in the Ultimate Rewards portal. This covers the cost of the annual fee more than ten times over! But if travel isn’t your thing, you can still redeem your points for cash back or gift cards. If you want an extra bonus when you redeem your points for travel, consider the Ink Business Preferred® Credit Card!
Capital One Spark Cash Plus
- Annual Fee: $150
- Intro Offer: $1,200 if you spend $30,000 during the first three months after account opening
- Rewards: Unlimited 5x miles on rental cars and hotels booked through Capital One Travel; Unlimited 2x miles on every purchase, everywhere
- Other Perks: Your $150 annual fee is refunded each year that you spend at least $150,000; Free employee cards
The Capital One Spark Cash Plus card allows you to earn an unlimited 5x miles on rental cars and hotels booked through Capital One Travel, plus an unlimited 2x miles on every purchase, everywhere! There are no limits or category restrictions to earning, which makes it a great card for businesses that spend evenly in multiple categories. Plus as an intro offer, you can earn $1,200 if you spend at least $30,000 during the first 3 months after account opening. And if you spend at least $150,000 annually, you get your $150 annual fee refunded! A $150 annual fee is rather mid-range for business credit cards, but getting it refunded is excellent. You’ll have to pay the balance of your Capital One Spark Cash Plus card in full every month; therefore, it has no APR, and may not be the best card for those looking to make large purchases and benefit from an intro APR, or pay the purchases off over time. But with the other perks this card has, it can definitely be a useful spending tool for your business!
Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post. The content on this page is accurate as of 5/2/2023; however, some of the offers mentioned may have expired.