Credit Cards for Startups

As the founder of a startup, there are plenty of good reasons for you to consider using a business credit card. Not only can it help you keep personal and business finances separate, it can come in handy for covering cash flow, building your credit history, and saving money through various perks and rewards.

Not all business credit cards for startups are equal, however, and you’ll want to choose one that best fits the needs of your business. If you’re required to travel often, for example, you might want to go with a card that offers great airfare and hotel rewards. If you’re looking to transfer existing debt from a high cost loan or credit card, you’ll want to choose a card with a low or zero balance transfer fee. Others who plan to carry a balance might choose one with a low interest rate.

Why wouldn’t I just use my personal credit card?
Well, glad you asked. Here are three serious advantages to using a business credit card for business purchases:

Having a business credit card allows you to keep your personal and business expenses separate. You’ll be able to track business expenses more easily, making tax time, as well as maintaining a company budget, much less of a headache.
By getting a card in the name of your business you’ll start to establish a business credit score separate from your personal one. That means that if you have to make a late payment, your business credit will take the hit instead of your personal credit (there are exceptions—read about which business credit cards report to personal credit bureaus here).
As you start to establish a business credit profile, you’ll build your business’s credibility. When it comes time to apply for other business financing, solid business credit scores can help you qualify for more financing at better rates.


Credit needed: fair (625 personal credit score)
No annual fee
Rewards earn 1% cash back on all purchases

High interest: 23.99% (Variable) as of October 10th 2017 APR
Late payment fee: Up to $39

The Capital One® Spark® Classic for Business card allows cardholders to earn rewards with no annual fee, and you don’t need an excellent personal credit scores to qualify. As a huge bonus, business owners who make on time payments and keep their balances low can build business credit. It’s worth noting, however, that Capital One may report your business payment history to personal credit reporting agencies, thus your personal credit scores could be affected by your business spending.