Believe it or not, but some of the best business credit cards aren’t business credit cards at all. Rather, it’s often in a small business owner’s best interest to use a personal/general use credit card. The reason for this somewhat confusing fact is the imbalanced application of the Credit Card Act of 2009. This law gave various protections to consumer credit cards, the most notable being the provision prohibiting credit card companies from increasing interest rates on credit card balances unless payment is at least 60 days delinquent. However, despite so-called business credit cards holding consumers personally liable, they were not extended such protections. As a result, the business credit card landscape has changed drastically, necessitating a new approach to spending from small business owners.
New Business Credit Card Landscape
Small business owners can use one of two strategies for their credit card use.
First, they can use two credit cards — a personal credit card for purchases that will lead to a revolving monthly balance and a business credit card for all other purchases. While some business owners might be tempted to only use personal credit cards, it’s important to remember that business credit cards provide certain benefits that personal cards do not. More specifically, they offer better tracking and reporting capabilities as well as the freedom to set up customizable credit limits for each employee card.
Alternatively, and quite interestingly, small business owners can simply use a Bank of America business credit card for all of their spending needs. As alluded to previously, so-called business credit cards are more closely connected with individual consumers than they are with individual corporations. Therefore, though it has yet to take place, CARD Act protections should be applied to what we refer to as business credit cards. Bank of America, displaying foresight and a dedication to customer service, proactively made this change. As a result, a Bank of America small business credit card provides debt stability and business utility, along with the simplicity of using a single credit card.
Here are the best small business credit cards for each strategy.
Two-card Strategy
Best Credit Cards for Business Owners to Revolve Debt
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Citi Platinum Select – 0% APR on balance transfers and purchases for 21 months; discounts on travel, gift cards and merchandise.
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Citi Diamond Preferred Card – 0% APR on both purchases and balance transfers for 21 months.
- Discover More Card – Even though Discover is accepted at fewer retail locations than Visa or MasterCard, that does not matter because small business owners should use this card for transferring existing debt, not for spending. This card has the longest 0% introductory balance transfer term on the market, a promotional offer of 0% for 24 months.
Best Business Credit Cards for All Other Purchases
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American Express SimplyCash – No annual fee, 5% cash back on wireless services and office supply purchases, 3% cash back on gas purchases, 1% cash back on everything else.
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Plum Card from American Express – This product is a charge card, which means any balance must be paid in full each month. The Plum Card provides 1.5% cash back on all purchases. It has no first year annual fee and a $185 annual fee thereafter.
- Ink Cash Business Card – No annual fee; $100 initial cash back bonus; 3% cash back on purchases made at office supply stores, gas stations, hardware stores, home improvement stores and restaurants up to $2,000 per billing cycle; 1% cash back on all other purchases.
One-card Strategy
Best Bank of America Business Credit Cards
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Platinum Visa Business Credit Card – This card is a good option for purchases that will not be paid for in full by the end of the month because it has a regular APR as low as 9.24%, no annual fee and a 0% introductory APR on purchases for six months.
- Cash Rewards for Business Visa Card – This card is a good option if you are planning to pay your bill in full every month. It has no annual fee; a 0% APR on purchases for 9 billing cycles and a regular APR as low as 11.24% thereafter; 3% cash back on purchases made at office supply stores, gas stations and for computer network services; and 1% cash back on all other purchases.
This article comes from the editorial division of Card Hub, a website with an extensive database of credit card deals and business credit cards for new businesses.
