Entrepreneurs place value on every single dollar they make — both through their core business competencies and through “bonuses” they earn on their credit cards. This is especially vital for small companies and startups, where every little bit of money you generate can make a big difference. So it’s important to take great care in choosing your small-business credit card — and in this article, we’ll round up some of the most promising contenders.
Understanding the different types of credit cards
The best way to think about credit cards is in terms of a few major categories: flat-rate reward, zero percent APR, and fair credit being the most essential. Here’s an explanation of each type of card, and our pick for the best card in each field.
Flat-Rate Reward Cards: The great thing about a flat-rate reward card is that you’re always going to earn back the same amount of money, no matter what kind of purchase you’re making. There is no tiered reward structure in place, which makes this a good option for small-business owners who just want to have one card at their disposal.
Our pick: As for a specific flat-rate reward card, we like the Capital One Spark Cash for Business. We like it for its simplicity: This card offers unlimited 2 percent cash back — a pretty smart deal for any entrepreneur to consider.
Zero Percent APR Cards: The zero percent APR card comes with no annual fee and is a smart option for when you need to make a major inventory purchase. Earning cash-back rewards while enjoying a long period of debt-free interest provides a lot of flexibility, which is something small companies thrive on.
Our pick: The Chase Ink Business Cash card offers everything you want in this category: a lengthy interest-free period, flexible reward structures and no annual cost to worry about. Again, we like it because it’s simple.
Fair Credit Cards: This last category consists of cards that are extremely cheap to maintain, so long as you’re able to pay off the balance each month. For smaller-scale purchases, this is a great way to borrow money for your business.
Our pick: The one we like most in this field is the Capital One Spark Classic — though just be sure you don’t plan to carry a lot of debt on this card. Ideally, you’ll have this one for small, month-to-month borrowing and a card from one of our other categories for longer-running debt.
Choosing the perfect credit card
There’s no one right way to settle on a credit card, and in fact, your business might benefit from having a couple different ones. We urge you to read through all the details on any card before you sign up and to think about how it will work for your small business. These three recommendations are ones to start with, but there are plenty of other great cards out there that are worth your consideration.
About the author
Amanda E. Clark is the president and editor-in-chief of Grammar Chic Inc., a full-service professional writing company. She is a published ghostwriter and editor, and she's currently under contract with literary agencies in Malibu, California, and Dublin. Since founding Grammar Chic Inc. in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative, business and academic fields. The company accepts a wide range of projects; often engages in content and social media marketing; and drafts resumes, press releases, web content, marketing materials and ghostwritten creative pieces. Contact Clark at www.grammarchic.net.
