Whether you’re a sole proprietor or a limited liability company (LLC) owner, if you’re constantly working to grow your business, having a business credit or charge card can make your life a lot easier. The right card can give you a tool to track all of your business-related expenses in one place. You can also earn cash back and other rewards on every business purchase you make, like video and recording equipment or travel expenses. Plus, many business cards for startups and sole proprietors offer card perks like free employee cards and travel insurance.
If you’re considering purchasing a business credit card, you might want to find out which cards are popular and which ones are overlooked. Even if they’re not offered by major issuers, you might be wondering if it’s worth checking out some lesser-known business cards.
With that in mind, here’s a rundown of hidden business cards you might not know about, as well as key perks and features for anyone busy building their brand.
Hidden business card
The Karat Card* issued by Cross River Bank is a charge card designed for online content creators, from podcast hosts to social media stars. The card takes social followings into account in the underwriting process, so you may be approved for a higher credit limit based on your cash flow and social statistics. The card has no annual fee and can be upgraded to Karat’s bookkeeping service, Karat Books, for an additional fee.
The Karat Card doesn’t have a set rewards system. Instead, cardholders choose from eligible rewards categories that can change twice a year based on spending. From there, cardholders can earn 1x to 3x points per dollar spent. Points can be redeemed for cash back, merchandise, and special options like access to creator events or having their photo featured on billboards.
Because it’s a charge card, you must pay each statement in full.
The Brex card is a corporate card for startups and growing businesses. It is also a charge card, so you will have to pay the balance in full every month. In any case, this business card does not have a personal guarantee, and there are no annual fees or foreign transaction fees. This card also has the potential to offer a high credit limit based on your company’s revenue and how much you raise.
Business owners who choose this card can get unlimited employee cards for free and earn rewards on all business-related purchases. Cardholders can earn up to 7x points on select spending categories and earn an additional 1x points on certain spending categories when they switch to daily autopay with their Brex Business account. Points can be redeemed for travel, statement credits, transfers to hotel and airline partners, and more.
The BILL Divvy Corporate Card, which is also a charge card, offers benefits such as no annual fee, free employee cards, and unlimited virtual card numbers. Cardholders can also integrate their accounts with Divvy expense management software and set enforceable budgets for all cards linked to their accounts. Credit lines range from $1,000 to $5 million, making this card suitable for both small and large businesses.
This business card offers higher points rates for frequent spenders. For example, cardholders who pay their balance monthly can earn 2x points on restaurant and hotel spending, 1.5x points on recurring software subscriptions, and 1x points on everything else. However, businesses who pay their balance weekly can earn 7x points on restaurant spending, 5x points on hotels, 2x points on recurring software subscriptions, and 1.5x points on everything else. However, this higher points rate only applies to the first $5,000 in spending each month. After that, you earn points at the “everything else” multiplier on all purchases, regardless of purchase category. Points can be redeemed for cash back, gift cards, statement credits, and travel.
The Capital on Tap Business Credit Card from WebBank allows business owners to earn cash back and enjoy up to a $50,000 credit limit depending on creditworthiness. Earn 1.5% cash back on all purchases, or 2% if you switch to weekly autopay. There’s no annual fee, no foreign transaction fees on international purchases, and you can add unlimited employee cards to your account for free.
Unlike the other cards on this list, this card is a traditional credit card that allows you to carry a balance. Interest rates on this card range from 18.49 percent to 35.99 percent variable APR for new applicants, depending on your creditworthiness. This is a big range, but the minimum interest rate is below the current average card interest rate. This card requires a personal guarantee, which means you are personally responsible for any debts incurred by your business.
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. However, business credit cards are aimed at small businesses, sole proprietors, and entrepreneurs, and are only for business-related purchases and expenses.
With this in mind, there are many benefits to having a business credit card. For example, business cards can help you track your business expenses and get your taxes in order. They also usually come with rewards and various other perks for business cardholders.
Is a business credit card right for you?
The main reason business owners of all types apply for business cards is to get access to perks like higher credit limits, business-related discounts, and even rewards on business spending. This includes business owners with hundreds of employees, to sole proprietors who are looking for an easy way to separate business and personal spending.
While major card issuers like Chase and American Express currently offer some of the best business credit cards, there are benefits to choosing a card from a lesser-known issuer. For example, some of the cards we’ve selected don’t require a personal guarantee. Cards that require this type of guarantee mean that you, not just your company, are responsible for any debts incurred on the card.
Before getting a business card, analyze your business expenses. If your expenses are small, you may be able to handle them with a top-rated business checking account or high-yield savings account that offers a debit card. These cards may offer the security and protection you need without the hassle of getting a business credit card in your company’s name.
You can also find out if you qualify for traditional cards that offer cash back or other perks. The best rewards credit cards and small business credit cards can be used for short-term financing to start or expand your business, but you’ll likely need good to excellent credit to get the lowest interest rates and best perks.
If you need a higher credit limit, a better way to track business expenses, or need a credit card for your employees, a business credit card may better suit your needs.
How to choose a business credit card
To find the best business credit card for your needs, you need to:
- Take a look at your spending habits. Figure out what your business spends most on and look for cards that offer bonus rewards on the categories you spend most on.
- Compare annual fees and other charges. Consider business credit cards based on their annual fee, and be sure to check for any hidden fees, such as foreign transaction fees.
- Determine your ideal credit limit. Figure out how much your business spends each month and each year, then take a look at some of the best business credit cards with high limits.
- Check the eligibility requirements. Find out if the card you’re considering requires a personal guarantee or has a minimum credit score requirement, and look for a business credit card that lets you pre-qualify online without a hard pull that could affect your credit score.
- Choose the card that has the benefits and features you need most. After considering all the factors, choose a business card that offers the perks, features, and rewards that best suit your business.
Conclusion
Top credit cards from the likes of American Express, Capital One, and Chase have plenty of perks, but it never hurts to think outside the box, especially if you’re an influencer, content creator, or other independent contractor. Some lesser-known business cards come with better rewards programs and higher credit limits than others.
By comparing available business cards and seeing how they align with your company’s needs and goals, you can get the business cards that will help take your business to the next level.
*Information about the Karat Visa® Business Credit Card and Brex Card has been collected independently by Bankrate. Card details have not been verified or endorsed by the issuer.
