[Small Business Week] The Best Credit Cards for Small Businesses

As the nation celebrates Small Business Week, and Black Enterprise prepares to kick off its Entrepreneurs Summit in Miami, Fl, May 4 – 7, we want to use the occasion to help small business owners keep their business’s credit in good standing.

[Related: Get The 411 on Your Credit Score]

Business credit cards will play a big role in your ability to make purchases and track expenses. Analysts point out, however, that business credit cards should also only be used for purchases that will be paid in full at the end of the month, because the cards don’t have the same protections as those for personal use.

“Thanks to a credit card law that became effective in February 2010, a personal credit card is actually the best credit card for small business spending that will lead to an end-of-month balance,” says Odysseas Papadimitriou, CardHub CEO.

“This law made it illegal for credit card companies to apply increased interest rates to existing balances held on personal credit cards unless you are at least 60 days delinquent. This makes business credit cards, which were excluded from the law’s protections, riskier to use for this purpose since the interest rate can change at any point in time,” she adds.

As for the business cards that will give you the most bang for your buck, Cardhub and Wallethub recommend the following:

  • Best Initial Bonus: Ink Plus Business Credit Card — Up to $750 in travel rewards when you spend $5,000 within three months of account opening.
  • Best Cash Back: Capital One Spark Cash for Business — 2% cash back across all purchases, $500 bonus for spending $4,500 in the first three months, and no first year annual fee ($59 thereafter).
  • Best for Financing: Citi Diamond Preferred Card — 0% on purchases for the first 21 months and no annual fee. (Small business users should always finance company purchases with general-consumer products.)

No matter which card you choose, be sure to read the fine print and understand the terms and fees associated with it.