Having a business credit card can make life a lot easier as it allows you to track all of your business-related expenses in one place. You can also earn cash and other types of rewards for every purchase your business makes, and many business cards for startups, sole proprietors and corporations even offer perks like free employee cards and travel insurance.
But which business credit card should you choose? If you’re in the market for a business credit card, you may wonder which popular cards are out there and which ones you might be missing. You might even wonder if some of the lesser-known business cards are worth checking out, even if they aren’t offered by major issuers.
Business credit cards with hidden gems
With that in mind, we wanted to highlight some of the hidden gem business cards you may not have heard of. Here are four of the best options to consider, as well as an overview of their key benefits and features.
Karat Black Card: Best for Digital Content Creators and Influencers
Carat’s Black Card is tailored for online content creators, from podcast hosts to social media stars. In fact, the card also includes followers in their signup process, so you may be able to be approved for a higher credit limit based on the size of your audience. However, 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 choice, which can include options like spending on ads, groceries, and travel.
Karat Black Card does not charge an annual fee and also does not charge any interest. This is made possible due to the fact that the card offers you a merchant cash advance that is paid based on current and future income.
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 draws on a cash balance you deposit (similar to a secured credit card) and a monthly payment option that requires you to pay off your balance in full each billing period ( similar to a payment card). However, there is no personal guarantee on this business credit card and there are no annual fees.
Business owners who choose this card can also get unlimited employee cards and earn rewards on all their business-related purchases. Specifically, cardholders earn 7x points on rideshare purchases, 4x points on purchases made through Brex Travel, 3x points on restaurants, 2x points on software purchases, and 1x points on other spending.
Divvy Business Card: Best for maximizing rewards
The Divvy Business Card comes with no annual fee, free employee cards, and unlimited numbers of virtual credit cards. Applicants can also integrate their account with Divvy expense management software, and they can set mandatory budgets for each card linked to their account. Lines of credit can also be up to $15 million, so this card is tailored for both small businesses and larger corporations.
This business credit card also allows you to game the rewards process by increasing your rewards rate when you make frequent payments. For example, cardholders who pay off their balance each month will earn 2x points on restaurant and hotel spend, 1.5x points on recurring software subscriptions, and 1x points on other purchases. However, businesses that pay their balance weekly earn 7x points on restaurant spend, 5x points on hotels, 2x points on recurring software subscriptions, and 1.5x points on other purchases.
Capital on Tap Business Credit Card: Best to carry a balance
The Capital on Tap Business Credit Card enables business owners and entrepreneurs to earn money and enjoy credit limits of up to $50,000. All purchases earn cash back at a standard rate of 1.5 percent, and new cardholders can earn a $750 bonus when they spend $7,500 in purchases within three months of account opening. No annual fee is required and there are no foreign transaction fees for purchases made abroad.
Interest rates can also be as low as 9.99 percent based on creditworthiness, so this may be a good 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 that they extend a line of credit where you can borrow. However, business credit cards are for small businesses, sole proprietors, and entrepreneurs, and they are intended only for business-related purchases and expenses.
With that in mind, there are many benefits that come with having a business credit card. For example, business cards can help you track your business expenses and stay organized for tax purposes, and they also allow you to earn rewards and enjoy any number of business cardholder benefits.
Is a business credit card right for you?
The plethora of benefits that come with business cards are a major reason that all types of business owners sign up. This includes business owners with hundreds of employees to solopreneurs who just want a way to keep business and personal expenses separate.
While many of the major card issuers like Chase and American Express offer popular business credit cards, choosing a card from a lesser-known issuer has its advantages. For example, some of the cards we’ve profiled in this guide don’t require a personal guarantee, and they tend to allow you to 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. Find out what your business spends the most on and look for a card that offers bonus cash back or rewards in key categories.
- Compare annual fees and other fees. Compare business credit cards based on their annual fees and be sure to check for hidden fees like foreign transaction fees.
- Determine your ideal credit limit. Figure out how much your business spends each month and each year, then look for cards that can offer credit limits in that range.
- Check for eligibility requirements. Check if the cards you’re considering require a personal guarantee or have a minimum credit score requirement. Also look for cards that allow you to pre-qualify online without any impact on your credit score.
- Choose the card that has the benefits and features you want most. After all these factors are considered, choose a business card that has the benefits, features and rewards that make the most sense for your business.
While the top business credit cards from American Express, Capital One and Chase have a lot to offer, it never hurts to think outside the box. When you do, you’ll find that some business credit cards you’ve never heard of come with incredible rewards programs and higher credit limits than you’ll find anywhere else.
By comparing all the business cards available to you and seeing how they match your company’s needs and goals, you may end up with a card that can help you take your business to the next level.
All information about the Karat Black Card has been independently collected by Bankrate and has not been reviewed or approved by the issuer.