Here are the best business credit cards for self-employed small business owners – and a breakdown of how each could help you with your business.
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Best Business Credit Cards for Self-Employed
Business credit cards work differently than personal credit cards. For example, many banks do not report these balances, transactions, or even the credit lines to your personal credit report.
This can be extremely beneficial when you’re first getting your small business or side hustle off the ground.
During these tough economic times, having access to credit before you need it is wise and proactive. Keeping this in mind, now is the perfect time to explore getting a business credit card. Each of these cards offer you perks, benefits, and spending power for your business.
Best Business Credit Card for Everyday Spending
My favorite business credit card right now is the American Express Blue Business Plus. This card is good for people looking for 0% introductory APR on purchases and balance transfers for up to 12 months.
I used this card last year for one of my rental units. We redid the kitchen countertops, sink, and dishwasher. Having 0% introductory APR allowed me to use my AMEX Blue Business Plus to complete that remodel then payoff the balance without owing any interest.
This card earns you two American Express Membership Reward points on your first $50,000 in purchases each year. You earn one point on purchases after that. I nearly forgot to mention one of the best features of this card—no annual fee.
Membership Reward points are good for cash back or can be transferred to AMEX travel partners. You also get purchase and travel protections. Overall, this is my favorite business credit card for everyday spending.
Some report American Express is more likely to approve you if this is your first business credit card. They require good to excellent personal credit for approval, which means 690-850. They also check your personal credit during the application process to verify identity.
Best Business Credit Card for Category Spending
The second card is the Chase Ink Business Cash. This card is excellent for people who have large spend in specific categories. You earn 5% cash back on your first $25,000 in purchases each year at office supply stores and on internet, cable, and phone services.
The cash back earned is in the form of Chase Ultimate Reward points. You can use these points towards travel partners, gift cards, or paying yourself cash back.
You also earn 2% at gas stations and restaurants on your first $25,000 each year. Then 1% on all other purchases with no limit. If your business spending can maximize these categories, then you can earn thousands in Chase UR points each year.
The Chase Ink Business Cash is perfect for small business owners who are always driving, eating meals out, and make lots of office supply purchases.
I love this card because there’s no annual fee and a new cardmember offer of $750 bonus cash back after you spend $7,500 on purchases in the first three months. That’s a 10X return on your purchases. Also, there’s 0% introductory APR for 12 months on all purchases.
I suggest getting this card if you have plans to invest in your business. You can make a large purchase then maximum points earned while giving yourself 12 months 0% introductory APR. That offers the flexibility to focus on making your business successful while paying off your balance without owing interest for 12 months.
Chase requires good to excellent personal credit for approval, which means 690-850. They also check your personal credit during the application process to verify identity.
Best Business Credit Card for Cash Back
The American Express Blue Business Cash card is excellent for people who like to keep it simple. You earn cash back that’s automatically credited to your statement each month.
You earn 2% cash back up to $50,000 per calendar year, then 1% after. Time is money, right? If you don’t want to think about which card to use, then the AMEX Blue Business Cash is for you.
There’s no annual fee and 0% introductory APR on purchases for your first 12 months.
I cannot tell you how many people I talk credit cards with, and they dismiss anything that’s complicated right away. They want to keep it simple with straight cash back. Well, the AMEX Blue Business Cash automates cash back earnings and redemption, so it doesn’t get simpler than that.
AMEX requires good to excellent personal credit for approval, which means 690-850. They also check your personal credit during the application process to verify identity.
How to Fill Out a Business Credit Card Application
I’ve helped thousands of people learn about business credit cards on this site. If you’re worried about the application process for American Express, then I’m here to help.
Sometimes, Chase can be more difficult in terms of approval, especially if this is your first business credit card. However, I can help you walk through the process and know what to expect when you’re ready to apply.
Okay, let’s recap. American Express offers excellent no annual fees business credit cards for self-employed business owners. While they require good to excellent personal credit, you may have a better chance of approval compared to other lenders.
Chase’s Ink line of business credit cards offers amazing signup bonuses in conjunction with 0% introductory APR. I didn’t even mention it before, but there are many travel business credit cards issued from Chase that might be perfect for those who travel for work.
If you’ve never applied for a business credit card before, then keep in mind how a business line of credit can help keep you afloat during downturns. Whether you’re waiting for payments to come in or you’re making an investment in the future of your business, business credit cards give you need access to funds when you need them most.
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As always, I’m Rich and until next time.
“RichSmithEDU.com has partnered with CardRatings for our coverage of credit card products. RichSmithEDU.com and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered. I am not a financial advisor. The information I share is for educational purposes only and shouldn’t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.”