Having a business credit card can make your life a lot easier because it lets you track all of your business expenses in one place. You also get cash back and other types of rewards on every purchase your business makes, and many business cards for start-ups, sole proprietors, and corporations even offer perks like business cards. employee benefits and travel insurance.
But which business credit card should you choose? If you’re looking for a business credit card, you might be wondering which cards are the most popular and which ones are you missing. You may even wonder if some of the lesser-known business cards are worth checking out, even if they aren’t offered by major issuers.
Hidden Gem Business Credit Cards
With that in mind, we wanted to highlight some of the hidden gem calling cards you may never have heard of. Here are four of the best options to consider, along with an overview of their key benefits and features.
Karat Black Card: Ideal for digital content creators and influencers
The Karat Black Card is for online content creators, from podcast hosts to social media stars. In fact, the card even includes subscribers in their subscription process, so you may be able to get approved for a higher credit limit depending on your audience size. Anyway, the Karat Black Card does not have a set rewards system and allows cardholders to request a custom program instead. From there, they can earn 1-5% cash back in three categories of their choosing, which can include options like ad spend, groceries, and travel.
The Karat Black Card does not charge an annual fee and does not charge any interest either. This is made possible by the fact that the card offers you a merchant cash advance which is repaid based on current and future earnings.
Brex 30 card: ideal for high credit limits
The Brex 30 Card for business promises credit limits that can be 10x to 20x higher than the competition. This card also offers two different payment options – a daily payment option that draws from a cash balance you deposit (similar to a secured credit card) and a monthly payment option that requires you to pay your balance in full. each billing period (similar to a credit card). Either way, there’s no personal guarantee for this business credit card and there’s no annual fee.
Business owners who choose this card can also get unlimited free employee cards and earn rewards on all of their business-related purchases. Specifically, cardholders earn 7X points on rideshare purchases, 4x points on purchases made through Brex Travel, 3x points on restaurants, 2x points on software purchases, and 1x points on other expenses.
Divvy Business Card: Best for Maximizing Rewards
The Divvy Business Card comes with no annual fee, with free employee cards and unlimited virtual credit card numbers. Applicants can also integrate their account with Divvy expense management software, and they can set applicable budgets for each card linked to their account. Lines of credit can also be up to $15 million, so this card is for both small and large businesses.
This business credit card also allows you to gamify the rewards process by increasing your rewards rate when you make frequent payments. For example, cardholders who pay their balance monthly will earn 2x points on restaurant and hotel expenses, 1.5x points on recurring software subscriptions, and 1x points on other purchases. However, businesses that pay off their balance weekly earn 7x points on restaurant spending, 5x points on hotels, 2x points on recurring software subscriptions, and 1.5x points on other purchases.
Capital on Tap business credit card: ideal for keeping a balance
The Capital on Tap business credit card allows business owners and entrepreneurs to earn money and enjoy credit limits of up to $50,000. All purchases earn cash back at a standard rate of 1.5%, and new cardholders can earn a $750 bonus when they spend $7,500 on purchases within three months of account opening . No annual fee is required and there are no foreign transaction fees on purchases made abroad.
Interest rates can also be as low as 9.99% depending on creditworthiness, so this may be a good card to consider if you have good credit and need to carry over a balance from time to time.
How do business credit cards work?
Business credit cards are similar to personal credit cards in that they extend a line of credit that you can borrow against. However, business credit cards are intended for small businesses, sole proprietorships, and entrepreneurs, and they are intended for business-related purchases and expenses only.
With that in mind, there are plenty of benefits to having a business credit card. For example, business cards can help you track your business expenses and stay organized for tax purposes, and they also allow you to earn rewards and enjoy a number of business cardholder benefits. .
Is a business credit card right for you?
The plethora of benefits associated with business cards is one of the main reasons why all types of business owners sign up. This includes business owners who have hundreds of employees to solopreneurs who just want a way to separate their business and personal expenses.
While many major card issuers such as Chase and American Express offer popular business credit cards, choosing a card from a lesser-known issuer has its advantages. For example, some of the cards we’ve covered in this guide don’t require a personal guarantee, and they tend to get you higher credit limits than other business cards.
How to choose a business credit card
To find the best business credit card for your needs, you should:
- Look at your spending habits. Figure out what your business spends the most and look for a card that offers bonus cash back or rewards in the top categories.
- Compare annual fees and other fees. Compare business credit cards based on their annual fees and be sure to check for hidden fees such as foreign transaction fees.
- Determine your ideal credit limit. Calculate how much your business spends each month and year, then look for cards that can offer credit limits within that range.
- Check eligibility requirements. Check to see if the cards you are considering require a personal guarantee or have a minimum credit score requirement. Also look for cards that allow you to be prequalified online without any impact on your credit score.
- Choose the card that has the benefits and features you want most. After considering all of these factors, select a business card that has the benefits, features, and rewards that best suit your business.
The bottom line
While the best business credit cards from American Express, Capital One, and Chase have a lot to offer, it never hurts to think outside the box. When you do, you’ll find that some business credit cards you’ve never heard of come with great rewards programs and higher credit limits than you’ll find elsewhere.
By comparing all the business cards available to you and seeing how they match your business needs and goals, you may end up with a card that can help take your business to the next level.
All information about Karat Black Card has been independently collected by Bankrate and has not been reviewed or endorsed by the issuer.
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