Starting a new business is an exciting venture, but many entrepreneurs face challenges when it comes to obtaining a business credit card without established credit. Thankfully, there are many options available for those in this situation, and we're here to help! In this post, we will discuss the best credit cards for new businesses with no credit, ensuring you have the tools you need to build your business credit and succeed.
Best Credit Cards For New Business With No Credit Table of Contents
Why Do New Businesses Need Credit Cards?
There are several benefits to having a business credit card, especially for new businesses:
- Separate personal and business finances: Using a business credit card helps entrepreneurs keep personal and business expenses separate, making it easier to manage and track business spending and simplifying tax preparation.
- Financial management tools: Many credit cards offer budgeting and cash management tools tailored specifically for businesses, making it easier to manage your business's finances.
- Build business credit: By using a business credit card responsibly, new business owners can establish and build business credit, which increases the likelihood of obtaining loans and lines of credit at favorable terms in the future.
- Rewards and incentives: Many business credit cards offer rewards and cashback incentives on business-related purchases, like office supplies, advertising, and travel expenses.
Best Credit Cards for New Businesses with No Credit
While finding an ideal business credit card with no credit history can be challenging, there are several options available to help you jumpstart your credit journey. The following are some of the best credit cards for new businesses with no credit:
1. Spark Classic from Capital One
The Spark Classic credit card is a suitable option for newly-established businesses with limited credit history. It offers:
- 1% cashback on all purchases, with unlimited rewards potential
- No annual fee
- Free employee cards that also earn rewards
- Access to online tools and quarterly reports to help you manage your business finances
2. Blue Business Plus Credit Card from American Express
If your personal credit score is within a good range, the Blue Business Plus card from American Express is a great option for new businesses. Key features include:
- 2X Membership Rewards points on business-related purchases, up to $50,000 per year, and then 1X point per dollar spent
- No annual fee
- An introductory 0% APR on purchases and balance transfers for the first 12 months
- The ability to spend above your credit limit without penalty, with limits adjusting based on your card usage and payment history
3. Ink Business Cash Credit Card from Chase
The Chase Ink Business Cash card offers a solid cash back rewards program with no annual fee, ideal for new business owners. Some of its benefits include:
- 5% cash back on office supplies, internet, cable, and phone services, up to $25,000 in combined purchases annually
- 2% cash back on gas station and restaurant purchases, up to $25,000 in combined purchases annually
- 1% cash back on all other purchases, with no cap on rewards potential
- An introductory 0% APR on purchases for the first 12 months
Best Credit Cards For New Business With No Credit Example:
Imagine you just opened a small marketing agency and opted for the Spark Classic from Capital One. You use the card to pay for $3000 in office supplies, $500 in online advertising, and $1000 on business lunches. You would earn $45 in cashback rewards (1% of $4500), which could be used for future business expenses or even reinvested into your marketing initiatives.
Now that you have a better understanding of the best credit cards for new businesses with no credit, it's time to make an informed decision. These business credit cards provide opportunities to build credit, manage finances, and earn rewards and incentives for your business. Don't forget to share this article with other entrepreneurs to help them succeed in their own ventures. And as always, be sure to check out our other Flik Eco guides for personal finance and investing tips.
