The Best Business Credit Cards for 2021

Small business owners have been hit hard by the COVID-19 pandemic. 

While federal aid and PPP loan programs have helped many small businesses and self-employed workers through lockdowns and the recession, most business owners remain concerned about their business’ finances and even the future of their business, according to a recent study by MetLife and the U.S. Chamber of Commerce. 

When you’re trying to stay afloat, every dollar counts. That’s why it’s important to maximize each expense your business incurs, take savings where you can, and protect your own finances by keeping business and personal spending separate. No matter how much cash flow you have or what industry you operate in, the right business credit card can help you streamline your budget and simplify your accounting.

Business credit cards aren’t just for traditional small businesses with brick-and-mortar locations and employees — you can get approved for a business card as a sole proprietor or freelance worker. These cards offer a variety of benefits at varying price points, and some will serve your credit needs better than others. Here are our picks for the best business credit cards to help you decide:

Best Business Credit Cards for 2021

Best Business Credit Cards of 2021 Summary

Capital One Spark Cash for Business

Good for: Cash Back

Earn unlimited 2% cash back on every purchase, plus a $500 welcome bonus after spending at least $4,500 within the first three months of account opening. There’s a $95 annual fee, but it’s waived the first year.

Chase Ink Business Preferred Card

Good for: Welcome Bonus

Earn 3x points rewards in select business categories, up to $150,000 in combined annual spending: shipping purchases; advertising purchases with social media sites and search engines; internet, cable, and phone services; and travel. Earn 100,000 bonus points after spending $15,000 within the first three months of account opening. The Ink Business Preferred charges a $95 annual fee.

Capital One Spark Miles for Business

Good for: Business Travelers

Earn unlimited 2x miles on every purchase. You can get 50,000 bonus miles after spending $4,500 within three months of account opening, plus benefits like credit towards Global Entry or TSA PreCheck. Spark Miles’ $95 annual fee is waived for your first year. 

American Express Business Gold Card

Good for: Flexible Rewards

Earn 4x Membership Rewards points automatically in the two categories you spend most each month (up to combined $150,000 in annual spending, then 1x points). Categories include: airfare purchased directly from airlines; U.S. purchases for advertising in select media (online, TV, radio); U.S. purchases made directly from select technology providers of computer hardware, software, and cloud solutions; U.S. purchases at gas stations; U.S. purchases at restaurants, including takeout and delivery; and U.S. shipping purchases. You’ll also get 70,000 bonus points after spending $10,000 within three months of account opening. Amex Business Gold costs $295 annually.

Chase Ink Business Cash credit card

Good for: No Annual Fee

Earn 5% cash back on your first $25,000 in combined spending at office supply stores and on internet, cable, and phone services annually; 2% cash back on your first $25,000 in combined spending at gas stations and restaurants; and 1% cash back on everything else. You can get $750 bonus cash back after spending $7,500 within three months of account opening. This card charges no annual fee.

The Business Platinum Card from American Express

Good for: Premium Rewards

Earn 5x points on flights and prepaid hotels on AmexTravel.com, 1.5x points on eligible purchases of $5,000 or more, and 1x points on other purchases. You’ll also get an 80,000-point welcome bonus after spending $15,000 within the first three months of account opening, plus benefits including Global Lounge Collection access, Marriott Bonvoy and Hilton Honors Gold status, fee credit for Global Entry or TSA PreCheck, and more. The Business Platinum card costs $595 annually.

Card	Welcome Bonus	Rewards	Annual Fee
Capital One Spark Cash for Business	$500 cash bonus after spending $4,500 within 3 months of account opening	2% cash back on every purchase	$95 (waived the first year)
Chase Ink Business Preferred	100,000 bonus points after spending $15,000 within 3 months of account opening	3x points on the first $150,000 in combined annual spending in select categories and 1x points on other purchases:  • Shipping purchases • Advertising purchases with social media sites and search engines • Internet, cable, and phone services • Travel	$95
Capital One Spark Miles for Business	50,000 bonus miles after spending $4,500 within 3 months of account opening	2x miles on every purchase	$95 (waived the first year)
American Express Business Gold Card	70,000 bonus points after spending $10,000 within 3 months of account opening	4x points on the first $150,000 in combined annual spending in the 2 categories you spend most each month (then 1x points) and 1 point per dollar on other purchases:  • Airfare purchased directly from airlines • U.S. purchases for advertising in select media (online, TV, radio) • U.S. purchases made directly from select technology providers of computer hardware, software, and cloud solutions • U.S. purchases at gas stations • U.S. purchases at restaurants, including takeout and delivery • U.S. shipping purchases	$295
Chase Ink Business Cash credit card	$750 cash bonus after spending $7,500 within 3 months of account opening	• 5% cash back on your first $25,000 in combined spending at office supply stores and on internet, cable, and phone services annually  • 2% cash back on your first $25,000 in combined spending at gas stations and restaurants • 1% cash back on everything else.	$0
The Business Platinum Card from American Express	85,000 bonus points after spending $15,000 within 3 months of account opening	• 5x points on flights and prepaid hotels booked through AmexTravel.com • 1.5x points on eligible purchases over $5,000 • 1x points on other purchases	$595

Understanding Business Credit Cards

One of the most practical uses of business credit cards is to keep your business expenses separate from your personal spending. This can be especially helpful for new business owners or sole proprietors for whom the lines between business and personal spending can easily blur. 

Business credit cards work much like personal consumer cards. Charge purchases to your card, and pay them off when your statement balance is due each month or begin accruing interest on the remaining balance.

These cards can give you some flexibility in your business’ cash flow. If you know your invoices are typically paid at the end of the month, for example, but you incur costs throughout the month, charging them to a business card may simplify the payment process. 

But just like a personal credit card, it’s important to maintain good credit habits, like spending only what you can afford to pay down each month, keeping a low credit utilization rate, and paying your bills on time.  

Because these cards are designed for small business owners, you must submit information about your business on the card application. That also means they offer business-related rewards and benefits. Rewards categories like internet and phone services, office supplies, and online advertising may add much more value to your business than rewards grocery or dining rewards typically offered by traditional consumer cards.

A business credit card can also help you improve your business credit score, making it easier to qualify for future lending and even business partnership opportunities.

Can You Apply for a Business Credit Card?

You don’t have to be a traditional business owner to apply for a business credit card, but you do have to have some type of business.

If your business is structured as a corporation or an LLC, (maybe you’re a local restaurant owner or you run an accounting practice, for example) you can use your business information and any existing business credit history when you apply.

But a “business” is defined much more broadly for card applicants. If you’re self-employed in any capacity, you can likely qualify for a business card. This includes everything from a sole proprietorship for your full-time freelance work to part-time gig work and even side hustles. When you apply, you’ll need to include your personal information on the application. For example, you can use your Social Security number in place of an Employer Identification Number.

No matter what type of business you have, you’ll likely need to ensure your small business credit card with your own personal credit. This means that your personal credit score may be used to determine your approval, and your payment history as well as any debt you take on using the card may affect both your personal credit and business credit. Check your specific card agreement or reach out to your issuer to ask whether your payments are reported to consumer credit bureaus, business credit bureaus, or both.

How to Choose a Business Credit Card

To choose the best business card, consider how a credit card fits with your business’ budget and regular expenses. 

If you’re just looking for a simple way to separate your business expenses from your personal spending, or your expenses don’t fall into specific categories month to month, a cash back card with flexible rewards may be the best choice.

Also take your regular business activities into account. Business cards can be especially valuable for business travelers, with high-value rewards programs and benefits. But if your business doesn’t require frequent travel, you likely won’t be able to maximize a travel-focused card’s benefits.

It’s also important to evaluate just how much you spend each month. Some business cards cap bonus rewards after a certain amount each month or year. If your spending far exceeds these caps, a card with unlimited rewards (even at a lower rewards rate) may make a better choice. On the other hand, if your business expenses are relatively low, you should be careful to ensure that any rewards you earn outweigh the cost of the card’s annual fee.

How to Compare Business Credit Cards

Here are a few card details you should consider before applying for a new business credit card:

• Annual Fee: Despite the cost, a business card with an annual fee may better maximize your spending and more easily outpace the fee with rewards, especially if you have a lot of expenses or you travel frequently. Always make sure the card’s rewards and benefits are enough to at least cover the annual fee cost each year.
• Rewards Structure: Business credit card rewards can range from office supply and gas station bonus categories to travel and advertising. Review your expense reports and past purchases to determine which rewards categories will help you gain the biggest return on your spending — or if a flat rewards structure works best for you.
• Introductory APR: 0% interest introductory periods aren’t the most common feature on business credit cards, but they can be a valuable tool. If your business has taken on high-interest debt that you’re looking to pay down or you have a large upcoming expense you’d like some flexibility to pay off, an introductory APR on balance transfers or purchases can help.
• Ongoing APR: The ongoing variable APR your business card charges will affect how much debt you’ll take on if you need to carry a balance. While it’s good practice to pay your balance in full and on time with both personal and business cards, you should be aware of your card’s assigned interest rate.
• Cards for Employees: If you’d like to designate cards to employees for business-related expenses (an office manager who stocks up on supplies, or a client-facing employee who often drives off-site, for example), look for business cards that offer additional employee cards on your main account. Even if you pay an annual fee, these additional cards should carry no cost.
• Expense Management Tools: Business cards are great for separating your personal spending from business expenses, and many issuers offer budgeting or expense management tools to make your year-end accounting even easier. This may include year-end summaries, employee card spending and account alerts, integration with software like Quickbooks, and more.
• Perks: Basic travel and purchase protections, expense management tools, and employee cards are standard perks among business credit cards. Look into other benefits, such as welcome bonus, annual statement credits, partner discounts, and more to further maximize your card’s value.  

Getting the Most Out of Your Business Credit Card

Get the most out of your business credit card by using it for any business expenses that fall within rewards categories, and using your rewards to offset future business costs. 

Plan your spending and budget so you can qualify for any welcome bonus offers, and calculate your potential rewards before applying to ensure you spend enough to outpace the card’s annual fee each year. If your card offers any added benefits like savings on certain products, travel perks, or expense management tools, take advantage of those regularly — as long as they don’t require you to overspend on purchases you weren’t already planning.

Continue to make the most of your card by practicing good credit habits and using it to establish and build your business credit history. Always pay your balances off in full and on time, charge only what you can afford, and make sure any employees you entrust with card access make smart spending choices.

Methodology

To determine the best business credit cards, we evaluate cards for small business owners available from major issuers on the market today. These cards are designed to suit a number of different business types across different industries, so we focus on the cards that can add the most value for a wide range of businesses. High-value rewards and redemptions are the primary factor in our card picks, but other card details we consider include annual fee, added benefits and perks, business-related benefits (employee cards, expense management, etc.), ongoing APR, welcome bonus, and more.