Best Business Credit Cards to Build Credit
UPDATED: AUGUST 10, 2022
If you’re a new startup founder or small business owner, building your business credit score from scratch can be a challenge. You’re likely aware that having a good business credit score is the stepping stone for growing and expanding your business, and that banks and other credit lending institutions rely on this score as an indicator of your creditworthiness before deciding whether to extend you a business loan or line of credit.
So how do you get started?
One of the easiest and fastest ways for a business to build its credit score is by using a business credit card (not a personal credit card!). Using a credit card for everyday business expenses and making timely payments over time will help you build a strong credit history. However, for businesses starting anew or those with poor credit scores after some years in business, it can seem tricky to qualify for business credit cards with its myriad of financial requirements.
Remember that you need to build business credit with a small business credit card. You won't apply for a small business credit card with your personal credit score, as card issuers typically ask for your business's information and require that your business credit card only be used for business expenses. That's also something to keep in mind if you're planning on doling out employee cards: make sure those cardholders don't use the credit card for any personal expenses.
Not to worry — all it takes is finding the right business credit card that is suited to your business needs and current credit score.
A business credit card is a perfect credit builder for businesses that plan to grow in the future. It allows you to start with a smaller limit that you can use and pay off regularly. Over time, this business credit builder strategy will allow you to increase your limit, the number of cardholders in your company and the ways you use the card to pay for expenses.
If you are a new business owner, or your business has a poor or average credit score, here are seven business credit cards for you to consider.
Capital One® Spark® Classic for Business Credit Card
Ideally, the best business credit cards give its users additional lines of credit, low fees, discounts and rewards. For businesses with an average credit rating that don’t quite qualify for the top of the line credit cards, the Capital One® Spark® Classic for Business is a great option.
The Capital One business credit card is designed with simplicity in mind and is one of the easiest credit cards to get if you have less than stellar poor or fair credit. The biggest drawback of this business credit card is its high yearly annual percentage rate (APR) of 26.99% (variable). In addition to this, CapitalOne has some mixed reviews with small business owners. Even so, the card has some pretty cool perks.
Pros of the Capital One® Spark® Classic for Business
Here's all the good stuff about this business credit card.
- No introductory APR
- Unlimited 1% cash back rewards on purchases
- Can be applied by those with average credit score
- Free employee cards with spending limits
- No charges for balance transfer
Cons of the Capital One® Spark® Classic for Business
Here are the not so great things about this credit card.
- High yearly variable APR of 26.99% with a late penalty, 29.4% variable APR
Brex Business Credit Card
Brex is no longer offering its services to small businesses.
In place of Brex, may we suggest the Tillful Card? It pairs well with any bank account, although we’re partial to NorthOne and Nearside.
ℹ️ Need more info? Hop over to our business bank account guide.
If your business is a VC-backed startup, then Brex may still be a good fit for you. That said, we might be careful with a company that dropped such a large segment of their user base so quickly, especially in this economy (we're not alone here — lots of startups have been switching over to other providers).
Wanna proceed? The Brex business card (paid monthly) caters especially to startups, and doesn’t require you to guarantee the debt on the card.
Instead of approval hinging on your business credit score, its measure of creditworthiness depends on your cash balance, spending habits and investors. It also reports to credit bureaus, making it a potential great fit for new businesses with no credit.
Pros of the Brex Business Credit Card
Here's all the good stuff about this business credit card.
- Reports to business credit reporting agencies
- Able to track spending expenditure of multiple cards with automated expense tracking
- Great introductory rewards points, such as 5x points on Brex travel and 3x points for recurring software expenses
- Quick approval process with no personal credit checks required.
- Able to issue card to employees virtually
- Higher limits than most of the cards in the market
- No personal guarantee
Cons of the Brex Business Credit Card
Here are the not so great things about this credit card.
- Minimum balance of $50,000 bank account required to be approved
- On the monthly card, you are required to pay bills every 30 days since it’s a charge card
Bank of America Business Advantage Unlimited Cash Rewards Mastercard® Secured Credit Card
Say that three times fast. This secured business credit card from Bank of America is a good starter card for building business credit. It reports to all three major bureaus (Experian, Equifax, and Dun and Bradstreet). If your account is in good standing, then it reports to business credit bureaus only. However, any negative marks that your account incurs will also be reported to the consumer credit bureaus, and show up on your personal credit report.
According to small business owners, this card seems to be pretty good about upgrading to an unsecured credit card with consistent responsible use (one year or longer). It has a minimum deposit of $1,000 to secure the credit line, and features 1.5% cash back rewards. It also lets you carry a balance, with an APR of 24.49% as of September 2022.
According to Bank of America, eligibility is at least partially based on your personal credit score. However, the security deposit acts as your guarantee.
Pros of the Bank of America Business Secured Credit Card
Here's all the good stuff about this business credit card.
- Reports to all the major business credit bureaus
- 1.5% cash back rewards
- Can be upgraded to unsecured
Cons of the Bank of America Business Secured Credit Card
Here are the not so great things about this credit card.
- Minimum $1,000 deposit
- Reports negative marks to your personal credit
FNBO Business Edition® Secured Mastercard® Credit Card
This is another secured business credit card, but offered by First National Bank of Omaha (FNBO). The FNBO Business Edition® Secured Mastercard® Credit Card has higher requirements than the Bank of America secured credit card. It has a $2,200 minimum deposit, which gets you a $2,000 credit line. The security deposit is 110% of the credit line amount, rather than the more common 100%. It also has a $39 annual fee.
The one perk of deciding to go with these higher minimums is that FNBO does allow you to earn interest on the deposit (a perk that Bank of America does not have). It also has a slightly lower APR than the Bank of America card at 22.49% APR, as of September 2022.
FNBO is not as clear about which credit bureaus it reports to, though it does state that it “may report” in the terms and conditions. We can note that most banks report to all bureaus. Though there is no personal guarantee, FNBO reserves the right to pull personal credit reports from all three major bureaus (TransUnion, Experian, Eqiufax).
Pros of the FNBO Business Edition® Secured Credit Card
Here's all the good stuff about this business credit card.
- Earn interest on your security deposit
Cons of the FNBO Business Edition® Secured Credit Card
Here are the not so great things about this credit card.
- $39 annual fee
- High minimum deposit at $2,200
- Unclear credit reporting structure
Chase® Ink Business Unlimited® Card
If rewards and cash back programs are a top priority for you, the Chase® Ink Business Unlimited® will likely be the business credit card of your choice. The best part about this card is its generous $750 sign-up bonus if you spend $7,500 in the first three months after account opening (as of the last update of this article). Since Chase reports your account activity to business credit bureaus, this card sets the perfect base for you to build your business credit history. This card also opens the portal to Chase Ultimate Rewards, which can compound your travel rewards, get you bonus points, give you access to credit card offers, and more.
Pros of the Chase® Ink Business Unlimited® Card
Here's all the good stuff about this business credit card.
- Unlimited fixed rate 1.5% cash back rewards on all business purchases
- No annual fee
- No intro APR for up to 12 months
- Allows you to transfer rewards and points to other Chase Ink business credit cards
Cons of the Chase® Ink Business Unlimited® Card
Here are the not so great things about this credit card.
- 5% balance transfer fee
- APR will be charged on balance transfer
Blue Business Cash™ Card from American Express
This card could be another suitable option for businesses with no credit history that are looking for an appropriate business card to start their businesses. The main selling point of the Blue Business Cash™ Card from American Express is that it allows you to spend higher than your credit limit. The card’s Expanded Buying Power feature adjusts with your use of the card, your payment history, credit record, and other factors.
Though Expanded Buying Power is a nice perk, do keep in mind that high credit usage could lower your credit score. It’s also important to ensure your payment is made on or before it is due in order to build and maintain good credit.
Pros of the Blue Business Cash™ Card from AmEx
Here's all the good stuff about this business credit card.
- 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%, applied automatically to your statement
- 0% APR for first 12 months
- Ability to spend above credit limit
- Extended warranty by up to one year
Cons of the Blue Business Cash™ Card from AmEx
Here are the not so great things about this credit card.
- 2% cash back on annual spending for only up to $50,000
Store Cards
If you’re brand new to business and to building business credit, then opening business accounts with stores you frequent will probably be easier and render better results than trying to apply for more “traditional” business credit cards right away. Since these accounts will have to be used for business expenses only, think about where you spend the most money for supplies, and other business goods.
Sam’s Club Store Card
The store card for Sam’s Club is a very popular option among new business owners. It’s a great choice because Sam’s Club carries a very wide array of products, from office furniture to appliances, food, and other essentials. Anecdotally speaking, many new businesses have luck getting approved for the Sam’s Club card.
Circle K
Pretty much every small business owner needs gas! Most gas station companies offer business credit cards. Circle K is a popular choice, but you could also look into opening an account with Shell, Chevron, or whichever station is most convenient in your area. While getting a gas card won’t let you buy as many different types of things as say, a Sam’s Club card, it does help you establish a tradeline, which can help you build business credit (and later qualify for a traditional business credit card).
Pros of Store Business Credit Cards
Here's all the good things about store cards at Sam's Club & Circle K.
- Usually easier to get approved for than traditional business credit cards
- Build business credit
- Most of the time, no APR or annual fees
Cons of Store Business Cards
Here are the not so great things about these store cards.
- Most of the time, you’re limited to using the card in-store only
- Most accounts do not allow you to carry a balance
- You’ll have to manually check to see if the store credit card reports to the credit bureaus (although most major ones do)
AtoB
The AtoB card is designed specifically for fleets. It is primarily a fuel card, but can be “unlocked” to cover other costs associated with fleet maintenance, such as repairs. From their site, it’s unclear what the criteria for this would be. Keep in mind that “fleets” aren’t limited to trucking — if you have company vehicles that you use to run your business, then AtoB could help you financially manage that aspect of your business.
Pros of the AtoB Card
Here's all the good stuff about this card.
- 5 cent flat discount on fuel, at all gas stations
- $0 fees, no APR
- Low minimum requirements
- Reports to Experian
Cons of the AtoB Card
Here are the not so great things about this card.
- 7 day billing period
- Credit line is not always very high
- Limited in spend scope capabilities
CapitalOnTap
CapitalOnTap is a good choice for a beginner unsecured credit card. It does a soft credit pull on your personal Experian score and doesn’t have very high requirements when it comes to your business credit history. The minimum requirements are at least six months in business and at least $2,500 per month in revenue.
Pros of CapitalOnTap
Here's all the good stuff about this business credit card.
- Monthly billing period, with 15 day grace period
- 1.5% unlimited cash back
- $0 annual fee (for a limited time)
- Reports to Experian and SBFE
Cons of CapitalOnTap
Here are the not so great things about this credit card.
- Requires more than 6 months in business
- Requires $2,500 in revenue per month
Tillful Card
Because who would we be if we didn’t push our pride and joy? We love Tillful Card for obvious reasons, but also because we built it with and for you. Tillful Card is a secured business credit card designed for business credit building. It reports to Experian (Equifax and Dun & Bradstreet coming soon) and has a minimum deposit of $500 (which you can raise over time with new deposits). The security deposit creates your credit line. There are no fees, and it’s ideal for new businesses. We definitely suggest pairing it with some store cards and/or vendor accounts so that you can properly round out your business credit file.
Pros of the Tillful Card
Here's all the good stuff about this business credit card.
- No minimum business requirement and no bank account balance minimums
- Easy for new businesses and those with no business credit to get approved
- 1.5% rewards
- Reports to Experian, with Equifax and Dun & Bradstreet coming soon
Cons of the Tillful Card
Here are the not so great things about this credit card.
- Secured card with a $500 minimum deposit
- Cannot carry a balance
Summary
Overall, there are many great credit card options available in the market for startups and small business owners. The key is to look into multiple aspects of what the card has to offer to see if it can help you maximize rewards and meet your goals. This way you get a credit card tailored to your business needs while building a strong credit score. Once you choose the ideal card for your business, take care of your credit score by keeping your credit utilization down, maintaining good payment habits, and spending within your financial means.
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