Having a business credit card can make life considerably easier since it lets you track all your business-related spending in one place. You also get to earn cash back and other types of rewards on every purchase your business makes, and many business cards for start-ups, sole proprietors and corporations even offer perks like free employee cards and travel insurance.
But which credit card for businesses should you choose? If you’re in the market for a business credit card, you may be wondering which popular cards are out there and which ones you may be missing out on. You may even wonder if some of the lesser known business cards are worth checking out, even if they’re not offered by the major issuers.
Hidden gem business credit cards
With that in mind, we wanted to highlight some of the hidden gem business cards you may not have ever heard about. Here are four of the best options to consider, as well as a rundown of their major perks and features.
Karat Black Card: Best for digital content creators and influencers
The Karat Black Card* is geared to online content creators, from podcast hosts to social media stars. In fact, the card even includes followers in its underwriting process, so you may be able to get approved for a higher credit limit based on your audience size. Either way, the Karat Black Card does not have a set rewards system and allows cardholders to request a customized program instead. From there, they can earn 1 percent to 5 percent cash back in three categories of their choosing, which can include options like ad spending, groceries and travel.
The Karat Black Card does not charge an annual fee, and it doesn’t charge any interest, either. This is made possible due to the fact the card offers you a merchant cash advance that is paid back based on current and future revenue.
Brex 30 Card: Best for high credit limits
The Brex 30 Card for businesses promises credit limits that can be 10x to 20x higher than the competition. This card also offers two different payment options — a daily payment option that pulls from a cash balance you deposit (similar to a secured credit card) and a monthly payment option that requires you to pay your balance in full every billing period (similar to a charge card). Either way, there is no personal guarantee for this business credit card, and there is no annual fee.
Business owners who choose this card can also get unlimited free employee cards and earn rewards on all their business-related purchases. Specifically, cardholders earn up to 8X points for payments made every day and up to 7X points on eligible purchases with monthly payments.
Divvy Business Card: Best for maximizing rewards
The Divvy Business Card* comes with no annual fee, free employee cards and unlimited virtual credit card numbers. Applicants can also integrate their account with Divvy expense management software, and they can set up enforceable budgets for every card tied to their account. Credit lines can also be for up to $15 million, so this card is geared to both small businesses as well as larger corporations.
This business credit card also lets you gamify the rewards process by boosting your rewards rate when you make frequent payments. For example, cardholders who pay off their balance monthly will earn 2X points on restaurant and hotel spending, 1.5X points on recurring software subscriptions and 1X points on other purchases. However, businesses who pay off their balance weekly earn 7X points on restaurant spending, 5X points on hotels, 2X points on recurring software subscriptions and 1.5X points on other purchases.
Capital on Tap Business Credit Card: Best for carrying a balance
The Capital on Tap Business Credit Card lets business owners and entrepreneurs earn cash back and enjoy credit limits up to $50,000. All purchases earn cash back at a standard rate of 1.5 percent, and new cardholders can earn a $200 bonus when they spend $15,000 on purchases within three months of account opening. No annual fee is required, and there are no foreign transaction fees on purchases made abroad.
Interest rates can also be lower (starting at 17.74 percent) than the average credit card rate, based on creditworthiness, so this might be a card to consider if you have good credit and need to carry a balance from time to time.
How do business credit cards work?
Business credit cards are similar to personal credit cards in the fact they extend a line of credit you can borrow against. However, business credit cards are for small businesses, sole proprietorships and entrepreneurs, and they are meant for business-related purchases and spending only.
With this in mind, there are many benefits that come with having a business credit card. For example, business cards can help you track your business spending and stay organized for tax purposes, and they also let you earn rewards and enjoy any number of business cardholder perks.
Is a business credit card right for you?
The plethora of perks that comes with business cards is a major reason all types of business owners sign up. This includes business owners who have hundreds of employees all the way down to solopreneurs who just want a way to keep their business and personal spending separate.
While many of the major card issuers such as Chase and American Express offer popular business credit cards, picking a card from a lesser known issuer has its advantages. For example, some of the cards we profiled in this guide don’t require a personal guarantee, and they tend to let you secure higher credit limits than other business cards.
How to choose a business credit card
To find the best business credit card for your needs, you should:
Look at your spending habits. Figure out what your business spends the most on, and look for a card that offers bonus cash back or rewards in the top few categories.
Compare annual fees and other fees. Compare business credit cards based on their annual fees, and make sure to check for hidden fees like foreign transaction fees.
Determine your ideal credit limit. Figure out how much your business spends every month and every year, then look for cards that may offer credit limits in that range.
Check for eligibility requirements. Check whether cards you’re considering require a personal guarantee or have a minimum credit score requirement. Also look for cards that let you get prequalified online without any impact to your credit score.
Choose the card that has the benefits and features you want the most. After all these factors are considered, select a business card that has the perks, features and rewards that make the most sense for your business.
The bottom line
While top business credit cards from American Express, Capital One and Chase have plenty to offer, it never hurts to think outside the box. When you do, you’ll find that some business credit cards you have never heard of come with exceptional rewards programs and higher credit limits than you’ll find elsewhere.
By comparing all the business cards available to you and seeing how they align with the needs and goals of your company, you can wind up with a card that can help you take your business to the next level.
*All information about these cards has been collected independently by Bankrate and has not been reviewed or approved by the issuer.