Financing your business won’t necessarily be a smooth path. Entrepreneurs have a variety of options they can pursue when it comes to funding personal and professional expenses. It’s worth noting that choosing a credit card is a personal decision that requires thorough research and reflection. The cards listed below should be used responsibly, and you should adjust your spending habits based on income. With that in mind, these credit cards can be game changers for entrepreneurs.
This card can be beneficial to entrepreneurs for personal use. It features perks such as cashback on travel booked through the portal and a starting bonus of 60,000 points when you first sign up. Another notable feature of this card is that they do not charge an annual fee to cardholders. But, this card does require a credit score north of 700. In addition, the APR can be as high as 28%. You should be prepared and do your research before committing to any card.
Tina, a personal finance expert and founder of A Pinke Cloth Life, shares the following wisdom when it comes to choosing a credit card: “Compare more than a few cards before applying to see which ones will give you cashback on purchases, if they have an annual fee, the rates, and if you want a Mastercard, AE, or Visa… Establish a budget so you will know how much you can spend on the card and pay it off at the end of the month.” If you need help with organizing a budget, you should check out the Pinke Cloth store to find planners and other tools for record-keeping.
This is another strong card to consider for personal spending. The Discover it cash back card offers users the opportunity to earn cash back. Better yet, this card offers cash back on a variety of purchases such as groceries, streaming services, and consumer products. In addition, this card does not charge an annual fee.
This will allow you to potentially save hundreds of dollars and reinvest the capital into your business instead. Be aware – in order to be eligible for this card, you will need a strong credit score that is above 670.
This card is best for personal use for entrepreneurs who don’t have the strongest financial history. Applicants for this card can have a credit score that is fair/bad, and the company sometimes makes exceptions for people without a credit history.
Petal, which is a company that intends to make credit accessible to a wide audience of people, offers this card. Like the previously listed options, this card does not charge an annual fee to its users. There are drawbacks to this card. For example, the APR can be as high as 34%.
This card will be effective for professional use and can be especially relevant for small/nascent businesses. Credit cards for businesses require another level of research and intentionality. Kara Stevens, a finance coach, advises: “Leverage credit cards to pay for monthly expenses so you can benefit from rewards and perks rather than using cash or a debit card. Use your credit cards to establish good business credit when you pay in full and on time.
As a bonus, it’s important to check your business credit annually to make you more competitive for the best interest rates.” The Visa Ink card may be worth applying to based on a few characteristics. Customers get 1.5% cash back and can get $900 cash back when they spend within the first three months of opening their account. In addition, there is no APR for the first year. However, a strong credit history is requisite for this option. This card will be extra helpful when you first set up your business. For example, you can get 5% cash back on the first $25,000 spent on business essentials such as office supplies, internet, and phone.
This card would be more relevant for mature businesses with robust revenues. This card also does not require an annual fee, and customers do not have to pay APR during the first year of being a cardholder. Office supplies and client dinners can be used to earn 2x membership reward points. This card has a variable credit limit, which changes depending on your personal credit and the performance of your business.
Be thoughtful with this decision. Credit cards have a lot of amazing aspects that can allow for personal and professional growth. However, hidden fees and onerous terms can make this option feel more burdensome than beneficial. Conducting your own research and identifying a card that fits your needs is essential.