How to choose the best business start up credit cards for your needs?

When starting a new business, one of the biggest hurdles is often securing financing. Traditional business loans can be difficult to reach, especially for new businesses without an established credit history. Fortunately, there is an alternative option that many entrepreneurs are turning to: business start up credit cards.

These credit cards are designed specifically for startups, with features and benefits that cater to the unique needs of start-ups.

We will discover the criteria for choosing business start up credit cards, the benefits they offer, and some of the best options on the market.

Criteria for choosing business start up credit cards

When starting a new business, it can be tempting to rely on personal finances to get it off the ground. However, this can quickly become overwhelming and limit the growth of your business. Business start up credit cards can provide a helpful solution for financing your venture.

Credit Score

Your credit score is one of the most critical factors in determining your eligibility for a business start up credit card. The higher your credit score, the more likely you are to be approved for a card with a higher credit limit and better rewards.

Therefore, before applying for a business credit card, it is essential to check your credit score and ensure that it is in good standing.

How to choose the best business start up credit cards for your needs?

Fees

Credit card companies charge several fees, including annual fees, late payment fees, and balance transfer fees. When choosing a business start up credit card, it is crucial to consider these fees and how they will impact your overall costs.

Look for cards that have no annual fees, low late payment fees, and reasonable balance transfer fees.

Rewards

Many cards offer cash back rewards, points, or miles that can be redeemed for travel, merchandise, or statement credits.

When selecting a card, consider which rewards program offers the most significant benefits for your business. For example, if you frequently travel for business, a card that offers miles or hotel points may be the best option.

Interest rates

Interest rates can have a significant impact on your business's bottom line, especially if you carry a balance on your credit card. When comparing business start up credit cards, look for cards that offer a low introductory interest rate or 0% annual percentage rate for the first few months.

After the introductory period, ensure that the standard interest rate is competitive with other credit cards on the market.

Credit limit

The credit limit on your business start up credit card will determine how much you can spend each month. It is essential to choose a credit card with a credit limit that is sufficient for your business needs.

At the same time, you should be careful not to choose a card with a limit that is too high and will lead to overspending.

In short, when selecting a card, you should consider your credit score, fees, rewards, interest rates, and credit limit.

By taking these factors into account, you can find the best business start up credit card for your needs and help your business grow and thrive.

4 benefits of business start up credit cards

Business start up credit cards offer several benefits that can be especially helpful for new businesses.

Here are some of the key advantages:

Build credit history

Using a business credit card responsibly can help establish a credit history for the business. This can be especially important for new businesses that don't have an established credit profile.

Separate your personal and business expenses

Using a business credit card can help keep personal and business expenses separate. This can be helpful for tax purposes and for tracking business expenses.

Access to credit

Start-up credit cards can provide a source of credit for new businesses that may not yet qualify for a traditional business loan.

Be offered rewards and perks

Many business credit cards offer rewards and perks, such as cashback, travel rewards, and discounts on business expenses.

Best business credit cards for startups in 2023

Starting a business can be expensive, and many entrepreneurs require some form of financing to get their ventures off the ground.

With so many options available, it can be challenging to choose the best business credit card for your startup.

Here is the top list of 5 business credit cards for startups in 2023.

Capital One Spark Cash for Business

It offers unlimited 2% cashback on all purchases.

If you spend $4,500 within the first three months of opening the account, you'll receive a $500 cash bonus.

Chase Ink Business Cash

It offers a $750 cash bonus when you spend $7,500 within the first three months of opening the account.

Additionally, you'll earn 5% cash back on office supplies, internet, cable, and phone services, up to $25,000 per year.

You'll also earn 2% cash back on gas stations and restaurants, up to $25,000 per year, and 1% cash back on all other purchases.

American Express Blue Business Cash Card

It offers 2% cash back on all purchases, up to $50,000 per year. After that, the cashback rate drops to 1%.

There is no annual fee, and you'll receive a 0% APR on purchases for the first 12 months.

Discover it Business Card

The Discover it Business Card offers 1.5% cash back on all purchases, with no limit to the amount you can earn. Additionally, at the end of the first year, Discover will match all the cashback you've earned, effectively doubling your rewards.

Brex Corporate Card for Startups

The Brex Corporate Card for Startups offers a unique rewards program, with 7x points on rideshare, 4x points on travel, 3x points on restaurants, and 2x points on recurring software purchases.

In addition, there is no personal guarantee or credit check required to obtain the card. However, the card has a $5,000 minimum balance requirement, and there is no sign-up bonus.

In general, consider your business's spending habits and needs when selecting the best business credit card for your startup.