Business credit cards can be an essential tool for startups, giving entrepreneurs a source of capital and credit building to help grow their businesses. The 5 best business cards for startups in 2024 include:
- Ramp Corporate Card
- Capital One Spark 1% Classic Credit Card
- Chase Ink Business Preferred Credit Card
- American Express Blue Cash Preferred Card
- Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card
The business cards most ideally suited to startups don’t just give you access to capital—they provide effective tools and integrations for better accounting and expense management. Some of the products we feature in this article, including our own Ramp Corporate Card, offer these tools. Read on to learn about the best business credit cards for startups and fledgling small businesses.
Can a startup get a business credit card?
Many startups, LLCs, and sole proprietors can qualify for a business credit card. If your business doesn't have an established credit history, you can apply using your personal credit score or offering a personal guarantee.
If you don’t have any credit, or your credit score isn’t very good, secured cards are an option that doesn’t require any credit history and can help you build business credit. Once you’ve built your credit using a secured card, you may become eligible for a traditional credit card.
Corporate cards offer another option for startup businesses. Instead of looking at your business credit history, some cards like Ramp will underwrite based on your monthly sales data. So, if your business is bringing in enough monthly revenue, you may be eligible for a card even if you don’t meet the requirements for a traditional credit card.
What is the easiest business credit card to get for a new business?
If your business lacks an established credit history, secured credit cards are the most accessible option for getting a business credit card. Unlike traditional credit cards, which often have stringent credit score and revenue requirements, secured cards are more lenient. This is because you provide an upfront cash deposit that serves as your credit limit. For companies with a less-than-stellar—or nonexistent—business credit score, secured credit cards offer an alternative way to build business credit.
5 best business credit cards for startups
Our top business card picks for startups include the Ramp Corporate Card, the Capital One Spark 1% Classic Credit Card, the Chase Ink Business Preferred Credit Card, the American Express Blue Cash Preferred Card, and the Bank of America Business Advantage Unlimited Cash Rewards. These particular cards offer key perks for new businesses looking to establish their business credit and cover key expenses.
Choosing the best startup business credit card for new businesses
It’s important to choose a credit card issuer that offers you all the tools you need for success. Consider the tips below as you decide which business credit card is best for your startup.
1. Know the eligibility requirements
Each unique business credit card comes with its own eligibility requirements. To qualify for most offers, you typically need at least the following:
- Good credit: The highest-quality business credit cards typically require a personal guarantee from the business owner that’s backed by a credit score of 700 or higher. So, you’ll likely need excellent credit to qualify. However, if you have an adequate business credit score you may be able to bypass the personal guarantee and credit check.
- Proof of profitability: It may be difficult to qualify for a business credit card if your company isn’t profitable yet or if it isn’t producing a profit margin that’s high enough.
- Agreement among ownership: If your startup is a partnership, lenders will typically require all members of the partnership who own more than 25% of the business to agree to open the account. As such, in most cases, anyone who owns more than 25% of your business will likely need to be listed on the application, including their names, addresses, birthdays, and social security numbers.
If you don’t meet the requirements above, don’t worry: some corporate cards can use your sales data instead of years of business credit history or a personal guarantee to underwrite your business.
Can I get a business credit card with no business income?
Although some credit card providers will look at your business income, you can still get a business credit card if you use a personal guarantee. That way, you’ll agree to repay any debts your business can’t pay back from your own pocket.
2. Look for rewards that help your startup
Credit card rewards have become commonplace among credit card issuers nowadays. Rather than looking at membership rewards and additional perks as extras, consider them as essential tools to help you grow your company.
Most cards only offer rewards or bonus points on eligible purchases in certain spending categories like office supplies, travel expenses, or dining. What you can redeem your rewards for also varies by card, so you’ll want to consider whether you want travel rewards or more general rewards.
To avoid the complexity of trying to spend within the right bonus categories, you might consider looking for a card that offers universal cashback rewards on all purchases. That way, you don’t have to tailor where you spend your money, and you’ll know the value of the rewards every time you make a purchase. Cashback is often applied as a statement credit that you can put right back into funding your business.
3. Evaluate potential fees and interest
It’s important to look for an option that comes with a low interest rate if you’re not able to completely pay off your balance each billing cycle. Some cards also come with a 0% introductory APR period at account opening that you can use to perform balance transfers and pay down your debts on other cards.
However, interest often isn’t the only fee you’ll pay as a cardholder. Some other fees to watch for include:
- Annual fees
- Cash advance fees
- Balance transfer fees during the intro APR period
- Foreign transaction fees
- Late payment fees
- Returned check fees
Make sure you’re aware of any fees you may be required to pay before you fill out any business credit card application, as they can really add up (particularly foreign transaction fees). Or, you can avoid those fees by taking advantage of corporate purchase cards. These are charge cards, alleviating interest fees.
4. Compare terms and conditions
Different terms apply to each card, so you’ll want to familiarize yourself with your provider’s unique terms and conditions.
For example, some credit cards automatically revert to a default interest rate if you make a single late payment. In other cases, you won’t experience a default rate unless you completely miss a payment or make multiple late payments over a predetermined period of time.
Moreover, as the business owner, you may be personally liable if your business is unable to make payments, which could lead to collection actions, poor credit, and even bankruptcy.
5. Look for spend management features
Quality spend management is essential for every business, but it can mean the difference between growth and bankruptcy for startups. The best cards for startups come with spend management software. Some features to look for include:
- Employee cards: Look for cards that offer unlimited physical and virtual cards, allowing your team to make purchases while eliminating the need for reimbursem*nt programs.
- Real-time reporting: Automated expense tracking and reporting features let you see where your business spends the most—good spend management software will identify savings insights to optimize your spending, like duplicate software subscriptions or redundant vendor charges.
- Receipt matching: Automated receipt matching can help automate your expense reporting, freeing up hours of work.
Best overall card for startups: Ramp Corporate Card
Annual fee: $0
APR: N/A
Card details:
The Ramp Corporate Card is ideal for startups without a credit history. You just need an EIN number and $50,000 in a business bank account to qualify, and there's no credit check or personal guarantee required. Ramp's corporate card offers cashback on purchases and built-in expense management software to streamline your business finances.
Some of its features include receipt matching, subscription management, and AI-powered spending insights. Ramp is an excellent choice for startups that are aiming to earn rewards on business purchases while managing expenses.
Best for fair credit: Capital One Spark 1% Classic Credit Card
Annual fee: $0
APR: 30.74%
Card details:
The Capital One Spark 1% Classic Credit Card is tailored for small businesses, particularly those with fair credit that are aiming to build or improve their credit history. This card offers a 1% cashback on all purchases, without any limits or specific categories.
There's no annual fee, making it a cost-effective option for small business owners. The card's APR is 30.74% variable rate. It also includes benefits like free employee cards, fraud coverage, and year-end summaries, which can be valuable for managing business finances and monitoring expenses.
Best for travel rewards: Chase Ink Business Preferred Credit Card
Annual fee: $95
APR: 21.24%–26.24%
Card details:
The Chase Ink Business Preferred Credit Card is suited for businesses with frequent travel needs or those that spend the most in categories like shipping, internet, cable, phone services, and advertising. It offers 3 rewards points per $1 spent in these categories (up to $150,000 in combined purchases each account anniversary year) and 1 point per $1 on all other purchases.
The card carries an annual fee of $95 and a variable APR typically ranging from 121.24% to 26.24%. Additional features include travel insurance, extended warranty protection, and cell phone protection.
Best for groceries and gas: American Express Blue Cash Preferred Card
Annual fee: $95 ($0 for the first year)
APR: 19.24%–29.99%
Card details:
The American Express Blue Cash Preferred® Card is meant for businesses that spend significantly on groceries and gas. It offers a cash-back rewards rate of 6% at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) and 3% cash back at U.S. gas stations. It also includes 3% cash back on transit, including taxis/rideshare, parking, trains, and buses. Other purchases earn 1% cash back.
This card comes with an annual fee of $95, which is waived for the first year, and a variable APR typically ranging from 19.24% to 29.99%. It also includes car rental loss and damage insurance, as well as return protection.
Best for building credit: Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card
Card details:
The Bank of America® Business Advantage Unlimited Cash Rewards Secured Credit Card is designed for small business owners looking to build or rebuild their credit. As a secured credit card, it requires a refundable security deposit, which acts as a line of credit. It offers 1.5% cash back, without any caps or category restrictions.
The card carries no annual fee and has a variable APR, typically ranging from 18.49% to 28.49%. This card is suitable for businesses with limited or poor credit that still want to earn rewards on their spending. Additional features include fraud protection, overdraft protection, and online and mobile banking.
Annual fee: $0
APR: 18.49%–28.49%
At Ramp, transparency and integrity are core values guiding our content. We believe in the exceptional value of our products, which may shape our perspective. Our methodical approach involves competitor analysis, comparison of credit cards, and frequent reviews to maintain reliability. Review our full methodology for choosing the best business credit cards.
Which business credit card has the best interest rate for startups?
Among the best business credit cards for startups, the Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card offers the lowest variable APR, ranging from 18.49% to 28.49%, making it a strong choice for businesses with limited or poor credit that still want to earn rewards while managing interest costs.
The American Express Blue Cash Preferred Card has a competitive APR range of 19.24% to 29.99%, though it is more suited for businesses with higher spending on groceries and gas.
The Capital One Spark 1% Classic Credit Card has a significantly higher APR of 30.74%, which may make it less attractive for startups concerned about interest rates.
The Chase Ink Business Preferred Credit Card also offers a reasonable APR range of 21.24% to 26.24%, particularly appealing for businesses that benefit from travel rewards.
However, the Ramp Corporate Card does not have an APR, as it functions as a corporate charge card, making it ideal for startups that can pay off balances in full each month.
Which business credit card is best for someone with fair credit?
For someone with only a fair credit score, the Capital One Spark 1% Classic Credit Card is the best option. This card is specifically designed for small businesses with fair credit, offering 1% cashback on all purchases with no limits or specific categories. Additionally, it has no annual fee, making it a cost-effective choice for those looking to build or improve their credit history. While the APR is relatively high at 30.74%, the card’s accessibility to those with fair credit makes it a solid choice for owners of startups in this credit range.
What is the best credit card for foreign transactions?
For foreign transactions, the Chase Ink Business Preferred Credit Card stands out as the best option. It does not charge foreign transaction fees, which can save businesses a significant amount when making purchases abroad. Additionally, the card offers robust travel rewards, including 3 points per $1 spent on travel and other select business categories. These features make it ideal for startups and small businesses that frequently engage in international transactions or have travel expenses.
How to get a business credit card for a startup
So, you’re ready to get a business credit card, but what are the steps to doing so? Read on to learn everything you need to know.
1. Build business credit history
If your business isn’t at least three years old, you’ll likely need to rely on your personal credit for access to a business credit card. Even if your business is over three years old, if it doesn’t have any credit history, you’ll need to rely on your personal credit score.
As such, it’s important to work on your credit history and improve your score. You can do so by opening and using a secured credit card, a credit card that requires you to make a security deposit that becomes your credit limit. The good news is that once you do get a business credit card using your personal credit, you’ll start building your business’s credit score. And as long as you use your credit card responsibly, your business will qualify for a credit card on its own in time. For more tips, check out our guide on how to build business credit in 10 steps.
2. Gather and submit required documents
Once you find an offer that meets your business needs, it's time to submit an application. In most cases, you’ll be required to submit a series of documents for review by the lender’s underwriters. These documents typically include:
- Identification documents for all owners who hold more than a 25% stake.
- Your incorporation documents to prove the number of years you’ve been in business.
- Your most recent financial data including P&L reports. Some lenders may also ask for bank statements.
- Documents for personal assets. Keep in mind, you may be required to make a personal guarantee to access credit for your startup. This could mean securing the credit with your home, car, boat, or any other property.
3. Wait for approval
Several factors play a role in the amount of time you may have to wait for approval. In some cases, you’ll receive an instant decision in a matter of seconds. If the lender needs more information or further review, the process may take anywhere from a couple of days to a few weeks.
TIP
Can you get a business credit card with an EIN?
Yes, you can get a business credit card using an Employer Identification Number (EIN), without having to hand over your Social Security Number. However, the types of business credit cards that allow you to apply this way tend to have certain credit score, revenue, and cash flow requirements. To learn more about this topic, check out our guide on how to get a business credit card with just your EIN.
Can a newly formed LLC get a credit card?
Yes, a newly formed LLC can get a credit card, although the process may vary depending on the business's credit history and financial status. If the LLC doesn’t have an established business credit history, you can apply for a business credit card using your personal credit score or by providing a personal guarantee. Some business credit cards, particularly secured cards, don’t require an existing credit history and can help you build business credit over time. Additionally, certain corporate cards may offer approval based on your business's monthly revenue rather than credit history, making it easier for new LLCs to obtain a card.
What is the average credit limit for a business credit card?
The average business credit card limit in the United States is $56,100, but your limit may differ significantly from national averages. That’s because a lot of data goes into calculating the credit limit your business qualifies for. Some key factors involved in the calculation include:
- Your credit score: Those with the best credit scores will likely enjoy higher credit limits.
- Your company’s profits: Credit card companies are only going to lend you money they believe you can pay back over time. The higher your profitability is, the more access you'll have to the capital needed to pay them back. As such, higher profitability typically equates to higher credit limits.
- The offer you choose: Some lenders have a reputation for offering higher credit limits than others. However, a high credit limit may not be more beneficial than other tools. So this shouldn’t be your sole basis for choosing one offer over another.
- Underwriting style: Some lenders follow traditional underwriting methods to determine your credit limit. That means it’s based on a mix of your credit score, revenue, profitability, and other financial metrics. On the other hand, sales-based underwriters base their decisions on the sales you generate. This style of underwriting can result in credit limits that are up to 30 times those of cards with a traditional underwriting process.
There are a few things you can do to improve your chances of approval for a business credit card and higher credit limits. Those include:
- Work on your personal credit history: The better your personal credit score is, the better your approval chances are for your business credit card application.
- Prepare: In some cases, an inability to provide the specific information the lender requests can result in your application being declined. Take time to get your documents together and form an accurate understanding of your business’s finances before you apply for a credit card.
- Be picky: Don’t blindly apply for several cards. Instead, apply for cards that match your credit profile.
- Reduce your credit utilization ratio: Reducing your personal credit utilization ratio may result in better approval odds and higher credit limits on business credit cards.
What you can use your startup business credit card for:
Here's a general list of items you can (and should) use your business credit card to pay for:
- Technology (hardware and software)
- Marketing and advertising expenses
- Office supplies
- Business insurance and licenses
- Internal and external-facing office events
- Business travel expenses
The list above includes things that most businesses rely on business credit cards to pay for. However, it’s not an exhaustive list. The items listed below can also be paid for using a business credit card, but be careful not to do so if you can’t pay the balance. Otherwise, you might find yourself having to pay interest on the following:
- Payroll
- Taxes
- Office leases and/or mortgage payments
- Business travel upgrades
Before you start using your business credit card, take some time to project out your expenses over the next few months and ensure that you’re not overextending your resources. This exercise is really difficult to do manually, which is why Ramp’s customers rely on its platform to automatically identify every overspending instance and enable them to make smarter spending decisions.
Get Ramp’s corporate card for startups
If your startup needs a spending card, Ramp’s corporate card may be the answer. Unlike business credit cards, Ramp's corporate card doesn't require a credit check or a personal guarantee. Plus, our cards also come with spend management software to help you manage your business expenses and close your books faster each month.
Some of the most exciting features of Ramp include:
- Free to use: Get started with Ramp’s corporate card for startups and finance automation software for free. No annual fees or setup fees.
- Expense management tools: Set spending limits, automate receipt collection, and streamline your expense reporting.
- Accounting integrations: Connect Ramp with leading accounting platforms like QuickBooks, Xero, Sage Intacct and NetSuite and close your books 8x faster.
