Credit cards can be valuable allies for your business, especially with the rising inflation in 2024. However, with numerous available options in the market, choosing the right one is not easy. Need help selecting your business credit cards? We’ve got your back.
This guide explains the key factors to consider when choosing the right card for entrepreneurs, including rewards programs, low fees, startup options, premium perks, and technology integration. It aims to help entrepreneurs make informed decisions for business success, ensuring financial efficiency and exclusive bonuses.
Let’s begin learning to make informed decisions.
1. American Express® Business Gold Card
Amex overhauled the American Express® Business Gold Card in October 2023, introducing updated bonus categories and additional benefits, along with an increased annual fee of $295 ($375 for applications received on or after 2/1/24).
The updated card offers rewards, providing four Membership Rewards® points per dollar on the two most spendable categories. For flights and prepaid hotel reservations made through Amex Travel, you earn three points per dollar, while other transactions accumulate one point per dollar.
Additionally, it features a flexible business credit of up to $20 monthly statement credits for eligible purchases at FedEx, Grubhub, and office supply stores. Moreover, it provides a Walmart+ credit of $155 monthly for a membership.
The card comes in two color choices: traditional Gold or Rose Gold. While some individuals might welcome these updates, others could be displeased with the higher pricing or the additional effort needed to employ their monthly credits fully.
2. Venture X Business
Capital One’s Venture X Business card, available in Gold or Rose Gold, stands as a premium business card priced at $395 annually. It offers credit, incentives, lounge access, and an annual bonus. Cardholders earn two miles for every dollar on all purchases.
They’ll also earn five points for every dollar on flights and ten points for every dollar on hotels and rental cars booked through Capital One Travel.
New cardholders can gain 150,000 bonus miles for spending $30,000 in the first three months. Benefits include a $300 annual travel credit, 10,000 annual bonus miles, and flexible redemption options with no blackout dates. Additional perks include TSA PreCheck®/Global Entry and access to over 1,300 lounges.
3. World of Hyatt Business Credit Card
The World of Hyatt Business Credit Card is a top choice for business credit cards, primarily due to its value from World of Hyatt points. With a $199 annual fee, the card offers rewards such as earning 9 points per dollar spent at Hyatt. Additionally, it provides four bonus points per dollar spent at Hyatt hotels and five base points per dollar as a World of Hyatt member.
The card also grants elite status, giving the holder five Qualifying Night credits and automatic Discoverist membership for each $10,000 spent on the card within a calendar year. Furthermore, the card offers up to $100 in Hyatt statement credits and a 10% points rebate on award stays for the rest of the year.
Cardholders can now earn more points through the additional qualifying expenditure category, as the accelerator advantage continues beyond its original scheduled termination in 2023, until 2024.
4. U.S. Bank Business Altitude™ Connect World Elite Mastercard®
Introduced in early 2023, the U.S. Bank Business AltitudeTM Connect World Elite Mastercard® comes with several benefits at a reasonable cost. It offers incentives for travel, dining, mobile phone services, and other purchases, including pre-paid hotel and rental car reservations.
The card’s perks include a digital Priority Pass membership, providing four free visits annually. There is no annual fee for the first year, but there is a $95 cost for the subsequent years. Cardholders who pay with their card for ridesharing or taxi services every three months will also receive a $25 statement credit.
Apart from the numerous complimentary lounge visits annually, the card offers one of the best rewards programs for direct trip reservations. However, starting in 2024, the card will charge the annual fee, as the fee waiver only applies to the first year.
5. Ink Business Preferred® Credit Card
With a lower annual fee of $95, the Ink Business Preferred® Credit Card offers a rewards program comparable to that of the Amex Business Gold. Each account anniversary year provides three points per dollar on the initial $150,000 spent on travel and specific business categories, and one point per dollar on all other expenses.
Users receive a 25% increase in point value when booking travel with Chase Ultimate Rewards®, offering an incentive for a trip redemption. It also includes coverages for purchases and trips, such as primary rental vehicle insurance, smartphone protection, purchase protection, extended warranty protection, and trip cancellation/interruption insurance.
The Ink Preferred card allows a one-to-one point transfer with over a dozen travel partners, including American hotels and airlines. It may benefit businesses with high shipping expenses, considering the Business Gold card has removed shipping as an eligible bonus category.
Benefits of Credit Cards
Credit cards serve as your financial backbone, keeping the money afloat while you await business revenues or profits. Having said this, the other benefits of credit cards are outlined below:
- Convenience: Credit cards offer a convenient and widely accepted payment method, enabling you to purchase online, in-store, and over the phone.
- Rewards Programs: Several credit cards have rewards programs that allow you to earn points, cash back, or miles for your purchases, providing additional value.
- Build Credit History: Using credit cards responsibly can help you establish and enhance your credit history, which is crucial for upcoming financial transactions like loan or mortgage applications.
- Security: Credit cards often provide more security than debit cards. If your credit card is lost or stolen, you can report it, and the card issuer can often protect you from unauthorized transactions.
- Emergency Expenses: With instant access to money, credit cards may act as a financial safety net for unforeseen costs or crises.
Things to Watch Out for Before Applying for a Credit Card
With great powers come great responsibilities. You need to be cautious about these aspects when applying for a credit card; otherwise, you might end up facing the music.
- Interest Rates: Be aware of the credit card’s annual percentage rate (APR). A high interest rate can lead to higher costs if you carry a balance from month to month.
- Fees: Check for annual fees, late payment fees, cash advance fees, and other charges associated with the credit card. Some cards may have expenses that outweigh their benefits.
- Credit Limit: Understand the credit limit offered by the card. Exceeding your credit limit can result in fees and negatively impact your credit score.
- Introductory Offers: Be aware of introductory offers, such as 0% APR for a certain period. Understand when the promotional period ends and the standard interest rate afterward.
- Credit Score Impact: Applying for a credit card may cause fluctuations in your credit score. Consider your options carefully before making too many credit applications simultaneously, as this might backfire.
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