If you are 18 or over and just starting out, or maybe you have a bit more experience managing your credit but are looking to make a change, it is important to understand the benefits, and consequences, in opening up a credit card account.
But first, it is important to understand what a credit card is and how it works. When you are approved for a credit card, you are given a line of credit that allows you to borrow money against that credit line. And the credit card company will expect you to pay back the borrowed amount via a monthly payment, in addition to accrued interest based on the interest rate for the account. If you pay your balance in full every month, you will not be subject to interest, but any time you carry over a balance from month to month, you will be subject to and responsible for paying accrued interest.
Many people open credit card accounts to help them establish or improve their credit score, and the only way to get a credit score is to get accepted for some form of credit, and start leveraging it. Once you are 18 years of age, you can work with your bank to apply for and receive a credit card with a low starting limit (usually $500 or slightly more). Then, the key here is to start using the card. If you are new to credit card usage, you should ensure that you are not spending more than you can pay. Many new credit card users pay off their balance in full every month. So why use a credit card if you have the money already? Quite simply, this is a strategy just to show the lender that you are responsible with your usage and can pay your bill on time.
So what are the best credit cards out there? This question is really subjective, based on what is most important to you and your financial situation and goals. Take a look below as we break down the top cards for both business and travel rewards.
When selecting your credit card, understand that there is no one-size fits all. You may prefer a card that offers cash back based on usage, or maybe you want fuel perks when filling up at the pump, or maybe you are a small business owner and want benefits that will help you manage expenses. Whatever it is you are looking for, there is likely a card out there for you.
What is the best business credit card for rewards
If you are looking for business rewards, you are probably looking for a card that will help you best manage expenses, accrue mileage to help with business travel, or will give you points when dining out with your clients. As with consumer cards, there are a variety of websites available to you help you select the card that will help you maximize your rewards. This article from The Points Guy lists ten recommended credit cards such as the Chase Ink Business Preferred Credit Card which offers a sign-up bonus, the Capital One Spark Miles for Business which is recommended for everyday spending, and the Business Platinum Card from American Express which is suggested if you are looking for high-end perks, and more.
Understand that there are dozens of choices available to you. So before deciding which path to take, consider how much you spend each month, if you are going to carry over a balance month to month, and what type of perks interest you most. Most if not all credit card issuers now offer some unique advantage in the form of a rewards program; you just need to decide which one is most enticing to you.
Best small business credit card offers
If you are a small to mid-sized business owner, you have probably discovered that you can either leverage a personal credit card or a corporate card. And small-business credit cards are a great solution if you haven't yet developed a business profile that will qualify you for a larger corporate card. With small business credit cards, you need to remember that the card holder is personally liable for the card and ensuring it is paid on time, that minimums are covered, etc. With a corporate card, the organization takes on the liability of the debt vs. the individual.
So, what are the best small business credit cards and what offers should you look for?
Best Credit Cards for 2019
| Credit Card | Best For | Introductory APR | Regular APR | Annual Fee |
|---|---|---|---|---|
| American Express Business Platinum™ Card | Business travel card | N/A | N/A | $595 |
| Ink Business Preferred ™ Credit Card | Sign-up Bonus | N/A | 17.99%-22.99% Variable Rate | $95 |
| Bank of America™ Business Advantage Travel Rewards World Mastercard™ | No-fee travel rewards | 0% on Purchases for 9 billing cycles | 13.24% - 23.24% Variable APR | $0 |
| Capital One™ Spark ™ Cash for Business Card | Cash Back | N/A | 19.24% Variable APR | $0 first year & $95/year thereafter |
| American Express Blue Business™ Plus Card | 0% Intro APR period | 0% on Purchases and Balance Transfers for 12 months | 14.99% - 20.99% Variable Rate | $0 |
| Capital One™ Spark™ Classic for Business | Fair credit | N/A | 25.24% Variable APR | $0 |
| Brex Card for Startups | No personal guarantee | N/A | N/A | $0 |
Best business credit card for air miles
If you're a frequent traveler, you may determine that you want a business credit card that can help you accrue and use air miles, either for business or personal use. Most major airlines will offer a card to help you accrue miles, so it might be best to determine if you are loyal to any one particular airline, and start there. Delta, United, American, Southwest, and others all offer credit cards designed to help you accrue mileage, and points per mile will often increase exponentially the more you fly.
| Credit Card | Best For | Annual Fee | Initial Bonus |
|---|---|---|---|
| Capital One® Spark® Miles for Business | Overall | $0 for 1st yr, $95 after | 50,000 miles |
| CitiBusiness® / AAdvantage® Platinum Select® World Mastercard® | Initial Bonus | $0 1st yr, $99 after* | 60,000 miles |
| United MileagePlus® Club Business Credit Card | Airport Lounges | $450 | 50,000 miles |
| Capital One® Spark® Miles Select for Business | No Annual Fee | $0 | 20,000 miles |
| Delta Reserve for Business Credit Card | Free Checked Bags | $450 | 40,000 miles |
With small business credit cards, as we mentioned before, the cardholder takes on personal liability for the debt. But, for cards that help you accrue mileage points towards free flights, this can offer you both personal and professional benefits depending on how you wish to redeem those free miles.
