We are all about how to maximise the value of your best small business credit cards of 2018, so mainly how to get the most cash back and also how to travel for FREE!
The first thing we are going to talk about is applying for these business credit cards for most of them assuming that you are referring to business cards and not corporate cards.
So we are going to talk about corporate card because for business cards they are still going to be looking at your social security number.
Even if they ask you for the EIN they are still going to ask you for your SSN, So again it is going to be the hard inquiry and depending on other factors and depending on whom you are applying with their rules are going to affect you.
So for example, if you are personally over five twenty-four and you apply for a business card even if you are using your EIN, they are going to ask for the SSN! Meaning that you are not going to be able to get specific cards at the preferred chasing card, another thing to consider is that of most business cards you are going to be personally liable.
Whenever you apply for a credit card, there’s a bunch of terms most people do not read these, but if you look at them directly and read it you are going to see that you are personally liable, this means that if you have a credit card, and if the company defaults you cannot file bankruptcy to run away from this debt.
One of the considerable benefits of having a business is that you do not have personal liability but if credit cards you do still have that personal liability on a similar note.
If you issue employees cards, then you are going to be liable for any transactions as well, so hopefully, you have enough internal controls to make sure that there aren’t any fraudulent transactions and apparently if there is a fraudulent transaction what you can choose to sue the person or charge them.
However, you do not want to go through that process, and again I think it is better to be preventative rather than have to deal with the consequences given everything that we just talked about, what’s the point of having these business credit cards they sound pretty bad! Moreover, they look pretty dangerous, so the main benefit is that it typically has different categories compared to personal cards sometimes various benefits as well meaning that you can out.
So we are going to include many cards here, but we are going to give our top three that we think most people would probably want to jump on, you can look at those cards closer and decide if they fit better for you.
American Express Simplycash Plus
No annual fee card that gives you 5% cash back on your office supply purchases and wireless purchases, 3% cash back on a category of your choice those categories are things like airfare, restaurants, and a lot of other types both in travel. Otherwise, that will make sense for a lot of small business owners, and then you will get 1% cashback on everything else.
Now there’s no bonus opportunity here, so those cash back categories are where the goodies are regarding rewards on this card.
The Chase Ink Business Preferred
The credit card that has a $95 annual fee You are going to get three points per dollar on travel, internet, cable, phone services, shipping, ads on search engines and social media, so a lot of 3 categories there. You will get one point per dollar on everything else that you spend with the card. Now if you redeem these points through the Chase Ultimate Rewards program, each point will be worth 1.25 cents if you redeem for travel through Chase Ultimate Rewards. If you redeem for something else through Chase Ultimate Rewards, it will be the standard sort of one penny for one point. For example, 10,000 points would equal $100 if you are redeeming not in travel. For travel, those 10,000 points would equal $125 in travel.
There is a huge bonus opportunity here: if you spend $5000 with the card within the first three months of having it, you are going to get 80,000 bonus points, which again if you use those in the Chase Ultimate Rewards situation and you redeem it for travel, that is worth a $1000.
So this is a $95 annual fee card that is giving you a significant opportunity to earn $1000 worth of travel here right off the bat. So even if you do not use it for travel, it is still giving you the opportunity to get $800 worth of other rewards mostly, so that is an excellent bonus opportunity for business owners right off the bat.
Capital One Spark Cash
Very straightforward card, it gives you 1.5% cashback on all the purchases you make with the card. There is also the possibility of getting a $200 bonus if you spend $3,000 in the first three months of having the card.
So those are the three base cards. Now there are another five cards that you can check out and decide if they fit your spending patterns better.
The card that gives you two percent cash back on everything that you buy with the card. However it does have a $95 annual fee, for the first year, but then you will have that $95 every year after that. So if you compare this to the Capital One Spark Select Card that I just talked about, once that annual fee kicks in you basically have to be spending at least $20,000 a year for this card to be better than the other Capital One card.
If you put a lot on your cards, then this is one that could make much sense for you. If you do not charge quite that much on a business credit card, then the other one that’s giving you the 1.5% cash back will make more sense.
Those are a lot of different cards to consider, Think about how you spend in your business, whether those upfront bonuses are significant to you, and you can decide which one of those makes sense. However, those are in our opinion the best handful of small business credit cards that are on the market today.