The Top 5 Business Credit Cards for Startups to Build Credit
Starting a new business comes with its own set of challenges, one of which is building business credit. Having good business credit is crucial for securing loans, getting better terms on leases, and even obtaining contracts. Building credit for your startup can take time, but one way to accelerate the process is to use a business credit card responsibly. In this article, we’ll take a look at the top 5 business credit cards can help startups establish strong credit.
1. Chase Ink Business Cash
The Chase Ink Business Cash card is an excellent option for startups, offering 5% cashback on office supply stores and phone, internet, and cable TV services. There is no annual fee for this card and you can earn up to $500 cashback on qualifying purchases during the first three months. The card also comes with a 0% introductory APR for 12 months on purchases and balance transfers. This card can be an excellent tool to help startups invest in their early stages.
2. Capital One Spark Cash for Business
The Capital One Spark Cash for Business card offers unlimited 2% cashback on all purchases, and it comes with a $500 cash bonus after spending $4,500 within the first three months. There are no annual fees, and the card offers a 0% introductory APR for the first year. This card is an excellent choice for startups that need to make large purchases for office equipment or travel.
3. American Express Business Platinum Card
The American Express Business Platinum Card is a high-end business credit card with a $595 annual fee, but it can be worth it if you need to travel frequently. The card offers 5X Membership Rewards points on flights and prepaid hotels booked through amextravel.com. It also offers a statement credit for Global Entry or TSA PreCheck application fees. The card also includes access to airport lounges, valuable travel benefits such as baggage insurance, and more.
4. Discover it Business Card
The Discover it Business Card is a great option for startups that need to build business credit but also want to earn rewards. The card offers 1.5% cashback on all purchases, and Discover will match all cashback earned in the first year. Additionally, cardholders can earn up to $2,000 in statement credits per year for purchases at gas stations and restaurants. There is no annual fee for this card, and it offers a 0% introductory APR for the first year.
5. Wells Fargo Business Secured Credit Card
For startups that have no credit or poor credit, the Wells Fargo Business Secured Credit Card can be a great option. This card allows companies to build credit by pledging cash collateral equal to their credit limit. There is an annual fee of $25 per card, but the card offers cashback rewards and a 0% introductory APR for the first 12 months.
In conclusion, startup companies can develop business credit by using a credit card responsibly. By selecting the right card, they can earn rewards and other benefits while building a positive credit profile. The aforementioned cards are some of the top business credit cards on the market and they can help entrepreneurs establish credit, invest, and grow their companies.
