How to Find the Best Business Credit Card

Small business owners often ask me, “What’s the best small business credit card?”

My answer: “It depends.”

It depends how long you’ve been in business, how much credit experience your company has, which credit-building stage you’re at and, sometimes, whether you have good personal credit.

Of course, you’re reading this for specific, useful advice.  And, you’re certainly not looking for the same, bland advice you’ll find when you Google “What’s the best business credit card?”

So, instead of regurgitating the obvious, like “look for the lowest interest rate” or “read the fine-print before you apply,” I’ll give meaty strategies you can take to the bank.  Fair enough?

Knowing Which Credit-Building Stage You’re At Is Crucial For Getting and Building Business Credit

A low-limit, high-APR credit card may be a joke to an established company, but it means a world-of-difference to a new business establishing credit.

Each stage of business credit requires a different strategy – and different types of business credit accelerate credit-building at each stage.

So, instead of giving you a “one-size-fit’s-all” answer to the Big Question, let’s explore which business credit cards are best depending on where you’re at…

Credit Cards for New Business With No Credit

If what I’m about to say sounds discouraging, forgive me – I’ll redeem myself in a moment.

Don’t apply for business credit cards unless you have great personal credit (700+ FICOs) and you’re willing to personally guarantee your first business credit cards.

Look at it from a lender’s perspective…  Your company is new.   It’s unproven.  For all they know, it’s not real!   Banks royally screwed-up the economy, and now government watchdogs are breathing down their necks, scrutinizing every move.  They won’t make risky bets on new small businesses.

It’s sad, really.  It makes it hard for the little guy to get ahead, given most new businesses are funded using credit cards, personal savings and loans from friends and family.

So, the short answer is if you have great personal credit, it’s worth personally guaranteeing your first few business credit cards to shortcut establishing business credit.

Yes, personal guarantees aren’t ideal, but they’ve become more commonplace in today’s economy.

The long answer is, build-up your company’s credit history before you apply for business credit cards.

But wait a minute…  How do you build credit if… you need credit experience… to get credit… to build credit?

Here’s the good news…  Many places give credit terms to brand-new companies.  No credit history needed, just a business bank account and verifiable business phone number.

These accounts – called vendor lines of credit or net 30 accounts – let you buy products and services on credit, then you’re given 10-30 days to pay your invoices in-full.

Once four to five vendors report your on-time payments to the business credit bureaus, your company gets its first credit score – called a PAYDEX score.

And here’s the kicker: Your company needs a PAYDEX score to get most business credit cards.

Some entrepreneurs who’ve been in business for years don’t know this, all the while wondering why they can’t get business credit.

Credit Cards for Established Businesses With Some Credit

If you’ve been in business for 1-2 years, have an 80+ PAYDEX and at least 5-10 tradelines on your business credit reports, you’ll want to “beef up” your company’s credit with credit-builder credit cards, before going after rewards cards, low-APR cards, etc.

Credit-builder cards are simply easy-to-get business credit cards, like gas cards and branded store cards (i.e. for Home Depot or Staples).

Why bother with them?

Because the more credit experience your company has, the more likely it’ll get approved for credit cards with higher limits, better rewards and lower interest.

Plus, most banks decide credit limits based on your existing credit limits.   In other words, the higher your existing credit limits, the higher credit limits you’ll likely get on new cards!

Credit Cards for Established Businesses With Established Credit

Once you have ten or more vendor credit lines and at least three business credit cards, then choose a credit card that helps you maximize or manage cashflow, like:

  • Rewards Cards: If you spend a lot of money in certain areas (like office supplies or fuel), you can cycle those expenses through a rewards card that pays more cash-back on those purchases.  As long as you pay your balances in full within the grace period, you’ll pay zero interest and earn cash back to boot!   The Chase Bank’s Ink credit cards offer attractive rewards options with no annual fees (or first-year fees waived).
  • Cashflow Management Cards: Cards like Chase’s Ink Bold and the American Express Business Gold & Platinum cards help you manage cashflow and keep your business expenses separate from personal expenses.  You can’t roll-over balances month-to-month, but these cards have no pre-set spending limits and they’re interest-free.  You also get other perks like personal concierge services, companion travel ticks and other travel benefits.

As you can see, each stage of business credit-building has bigger, better perks.

That’s why building business credit – and starting early – is the single-best thing you can do for your company.  It’s also why you should take business credit-building as serious as anything else in your business.

The Small Business Administration reports one of the leading causes of business failure is running out of money.   Banks don’t give credit to businesses that need it – they give credit to business that demonstrate creditworthiness by taking time to methodically build their credit.

If you’re serious about getting the capital you need to move your company forward – and build a credit “safety net” for the future – then you owe it to yourself to get my Six Figure Business Credit course.

You’ll learn specific action steps to take at each phase of business credit-building, so you can accelerate business credit-building.   You’ll also learn which credit lines and credit cards offer the best chances of approval, depending on where you’re at.

Click here now to learn how you can get the course on a 100% risk free basis and get your first (or next) $10,000 in business credit within the next six weeks – guaranteed!