Credit Cards: How to Guide
Picking the right credit card for your business can be tough! Especially when there’s so many of them. We’ve narrowed things down for you, to show some of the best cards for startups and the greats and not-so greats about each of them!
Some things to keep in mind when credit card hunting
High enough credit limit
Business specific rewards that will help you grow
Flexible Payment Arrangements for growth
Ease of approval
The chart above gives a nice overview of the strengths and weaknesses of each card, and below is more detail on each of them.
Ramp Corporate Card
What’s great about it: No annual fee and unlimited 1.5% cash back on all purchases. They do not require a personal guarantee. Integrations with Ramp expense management and other finanical platforms.
What’s not so great about it: As a company you need to have $75,000 in cash to be applicable for the card. Is a charge card, meaning no credit balances month to month, balance must be paid at month end.
Brex Corporate Card
What’s great about it: No annual fee and plenty of awards for spending based on their points system. They do not require a personal guarantee and has integrations with Quickbooks Online, and other platforms.
What’s not so great about it: As a company you need to have $100,000 in cash as well as be investor funded to be applicable for the card. Like Ramp, it is a charge card meaning balances must be paid at month end.
American Express Blue Business Plus Credit Card
What’s great about it: No annual fee, and high rewards rate before hitting the cap. 0% APR for 12 months from the date of the account opening.
What’s not so great about it: 2.7% foreign transaction fee makes the card a worse option for international travelers. After hitting the $50,000 cap rewards drops from 2 point per dollar, down to 1 per dollar. Need personal guarantee and high credit score to be approved.
Expensify Card
What’s great about it: When using card creates instant receipts in Quickbooks Online with lots of integrations. No annual fee on the card itself. 1-2% cash back on purchases. No personal guarantee needed. No minimum bank balance, however bank balance does effect credit limit.
What’s not so great about it: Required to have Expensify alongside it, however can opt into their free program. Is a Charge card like Ramp and Brex which means balance must be paid at end of the month.
Chase Ink Business Cash Card
What’s great about it: Very high cash back, up to 5% in select categories up to $25,000, 2% after that. If you spend $6,000 in first 3 months, get $900 bonus. 0% APR for first 12 months.
What’s not so great about it: Requires a high credit score, and personal guarantee. Outside of the select categories, cash back is much lower.
CapitalOne Spark Cash Plus Card
What’s great about it: 2% unlimited cash back on all purchases. No preset spending limit. $500 reward for spending $5,000 in first 3 months. No foreign transaction fees.
What’s not so great about it: Annual fee of $150. A charge card as well, which means no carrying over balances, and there is a 2.99% late fee. Unlike the other charge cards, requires a personal guarantee.
Still lost on what card is the best for your startup? Feel free to reach out to our CFO’s here at Book+Street! They’re here to help guide you through the critical financial decisions for your startup to make sure that you can startup right from the very start!
