Compare business credit cards for startups
Many business credit cards offer helpful benefits for startups.
Running a startup is never easy. You’re juggling multiple priorities at any given moment — including, of course, your startups finances.
A business credit card can be your best friend for covering last minutes expenses. There are plenty of cards on the market catering to small businesses, so compare the annual fees, benefits and rewards to find the best card for your spending needs and financial situation.
How to compare business credit cards for startups
To choose the best business credit card for your startup, compare these features:
- Charge card vs credit card. You’ll need to decide whether a credit card or a charge card is right for your business. A charge card can be a handy way to keep out of debt, since you’ll need to pay off the balance in full each month, but a credit card can be helpful when you need extra time to cover the balance in full.
- Unsecured, secured or prepaid card. There are plenty of unsecured business credit cards on the market that offer strong perks and rewards. If you have no or low credit however, a secured or prepaid card may be all that you’re eligible for. These two types of business cards aren’t typically listed online, so you’ll need to contact a provider to find out if they offer secured and prepaid business cards.
- Annual fee. When cash is tight, you might not want the expense of an annual fee. There are a couple of no annual fee business cards on the market, though you’ll earn more powerful rewards with cards that charge an annual fee.
- Signup bonus. If you anticipate lots of purchases in the next few months, you could breeze past the spending requirement for a card’s signup bonus.
- APRs. Interest rates are important, especially if you think you’ll be carrying a balance from month to month. Few business credit cards have low APRs, so your choices may be limited.
- Rewards. A card with strong rewards can pay for itself. If your card has tiered rewards, check that your startup has significant expenses in the right categories. If your expenses are spread evenly throughout many categories, you might get more out of a flat-rate rewards card.
- Interest-free period. Planning on carrying a balance between billing cycles? A longer interest-free period can come in handy and help you hold onto your money for a little bit longer.
Your startup business faces unique challenges, which some credit cards can address more effectively than others. Before applying for a small business credit card, compare your options to find the best credit card for your needs. Consider rewards points, cash back, purchase and cash advance APRs and an annual fee you can afford when comparing cards. Plus, don’t forget to compare both charge cards and credit cards – this can be a great way to narrow down cards and find the right one for your business’ cash flow needs.
If you have no or poor credit, you may prefer to apply for a secured or prepaid business card. Your choices are limited, but a couple of providers offer these types of business cards if you reach out directly to them and inquire.
If you’d like to compare a wider range of small business cards, visit our comprehensive guide to business credit cards.