Why Every Small Business Owner Should Consider a Business Credit Card
KEY POINTS
- Personal and business expenses are best kept separate.
- Credit cards are reusable lines of credit and can be free when used right.
- A good rewards card can help you save on business expenses.
Managing your finances as a small business owner is a whole different world from dealing with your personal budget. Everything from how you bank to how you file taxes changes when you run a business.
One thing remains the same, however: credit. Just as everyone should have at least one personal credit card in good standing, I think every small business should have a credit card, too. I'll cover a few great reasons to consider a small business credit card. But first, check out this top pick if you're in the market for a small business credit card.
A small business card for everyone
You can find a lot of great small business cards out there that suit almost any kind of business you may run. But there is one business card that I think most, if not all, small business owners can benefit from: Chase Ink Business Cash.
On Chase's Secure Website.
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On Chase's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR on Purchases
Purchases: 0% Intro APR on Purchases, 12 months
Balance Transfers: N/A
Regular APR
18.49% - 24.49% Variable
Rewards Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.
Earn 5% cash back in select business categories
Annual Fee N/A
$0
Welcome Offer Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.
Earn up to $750 bonus cash back
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A card with no annual fee and a 5% cash back rate on common spending categories for a savvy business owner? Chase delivers -- and you can even earn a particularly generous welcome bonus and enjoy travel and purchase protections with this card.
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- Big cash back sign-up bonus
- Office supply store rewards
- Internet, cable, and phone service rewards
- 0% intro APR offer
- No annual fee
- Low caps on bonus categories
- No balance transfer offer
- Foreign transaction fee
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- Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- 10% Business Relationship Bonus If you have the Ink Business Cash card plus a Chase Business Checking account on your first card anniversary
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- 0% introductory APR for 12 months on purchases
- Member FDIC
This rewards card lets you earn big on office supplies and internet, cable, and phone services, plus you'll get bonus rewards on gas station and restaurant purchases. It has no annual fee, an awesome welcome bonus, and even offers perks like purchase protection and rental car insurance coverage.
Now, let's backtrack and talk about why a small business credit card could be a great idea for you.
Keeping finances separate makes life easier
The single best thing you can do to keep your business finances organized is ensure they're separate from your personal finances. (As much as possible -- these lines can get blurry when you run a business from home.)
Why a Business Credit Card Could Transform Your Small Business
These business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.
Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.
Offer | Our Rating | Welcome Offer | Rewards Program | APR |
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Ink Business Unlimited® Credit Card
Apply Now for Ink Business Unlimited® Credit Card
On Chase's Secure Website. |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Earn $900 bonus cash back Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. | Earn unlimited 1.5% cash back on every purchase Earn unlimited 1.5% cash back on every purchase made for your business |
Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 18.49% - 24.49% Variable |
Ink Business Cash® Credit Card
Apply Now for Ink Business Cash® Credit Card
On Chase's Secure Website. |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Earn up to $750 bonus cash back Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening. | Earn 5% cash back in select business categories Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. |
Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 18.49% - 24.49% Variable |
Having a dedicated business credit card where you can put purchases that are firmly in that "business" category makes it so much easier to keep track of expenses. This goes double when you have a small business bank account you can also use to pay that business credit card!
Plus, many issuers won't report small business card activity to your personal credit (unless you default). This means your regular business purchases won't impact your personal credit scores.
Credit cards are reusable (free) financing
Many businesses have inconsistent income; it's rare that you'll know exactly what you're going to make every week. You may even have drought-and-deluge income that leaves you with a tiny budget in between larger paydays.
In any of these cases, your business credit cards can be there for you. You can charge necessary expenses, then pay off your balance in full when the invoices come in. If you pay your statement balance in full by your due date every month, you won't be charged interest.
Many great small business cards even come with intro 0% APR offers. These can give you months, if not a year or more, of 0% interest on new purchases.
All you need to do is make at least your minimum payment before your due date and you won't accrue interest during the promo period. (Once the intro period ends, your remaining balance will start to accrue interest at the go-to rate.)
You can earn rewards on your business purchases
Much of the reason for me opening small business credit cards is because of the awesome purchase rewards. Business rewards cards offer some bonus categories you can't get from personal cards -- categories that are tailored to your business needs.
For example, some business cards offer bonus rewards on advertising or shipping purchases. You can even get card perks for your business, like car rental insurance for business trips.
Plus, like personal cards, many business cards come with valuable welcome bonuses. This opens up a lot of extra bonuses for folks who may be running out of eligible welcome bonuses on their personal cards.
A reliable small business credit card can be a great tool for any business owner. It can help you keep your finances organized, navigate inconsistent pay, and even earn rewards on your business expenses.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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