Finding the best small business credit cards with no annual fee can be a smart financial move. While many credit card companies, whether for personal or business use, often charge annual fees ranging from $99 to several hundred dollars, is it really worth it?
We recommend considering cards without these fees. While it’s possible to compare the cost of the annual fee against the card’s rewards and perks, often, cards without annual fees offer benefits and rewards that are just as compelling, if not more so, than their fee-charging counterparts
What is a Credit Card with No Annual Fee?
A credit card with no annual fee, as the name suggests, allows users the advantage of enjoying the card’s benefits without the burden of an annual charge, at least for the initial year. However, while this might sound like an absolute advantage, there are nuances to consider.
As you approach the account anniversary, anticipate the imposition of an annual fee. Furthermore, maintaining punctuality in payments is essential.
If you don’t adhere to the payment schedule, or if payments are skipped (details of which are typically specified in the card’s terms), the issuer may impose an Annual Percentage Rate (APR) as a penalty or interest on your outstanding amount.
Why You Should Consider a Business Credit Card with No Annual Fee
Before you get a business you should ask what are business credit cards and why should I get a business credit card. With those answers in hand, take a look at why a no annual fee business credit card is a good option.
- Do the math: With no annual fee, you’ll inherently save on card costs, especially considering some cards charge fees as high as $300 annually.
- Simplified Decisions: By choosing best business credit cards no annual fee, you remove the need to regularly assess whether the rewards from the card justify its annual cost.
- Perks Galore: Despite the absence of a fee, many such cards come with tempting welcome offers, cashback opportunities, and a variety of benefits.
- Optimize Business Expenditures: These cards can be integrated seamlessly into daily operations, enabling you to earn rewards on routine expenses like utilities.
- Balance Transfers: Many of these cards let you transfer balances from cards with higher interest rates, which can help you save money on interest payments.
- No Upfront Deposits: Typically, no security deposit or personal guarantee is required, though it’s essential to remember this doesn’t equate to zero liability for unpaid balances.
- Opportunities for Upgrades: Maintain a stellar payment record, and you might find yourself eligible for a prestigious card upgrade, such as a business platinum card.
- Travel Friendly: A significant number of these cards come with minimal or zero foreign transaction fees, making international business transactions smoother.
- Safety First: Real-time fraud monitoring ensures that any suspicious activity on your card is promptly flagged and addressed.
Our Methodology: How We Chose the Best Small Business Credit Cards with No Annual Fee
For our selection of the best business credit cards with no annual fee, we carefully considered a variety of factors that are crucial for small business owners and entrepreneurs. Each criterion is assigned a scale from 1 to 5, reflecting its importance in our evaluation process, where 1is less critical, and 5 is most critical:
- Interest Rates and Charges (Rating: 5)
- We focused on cards offering competitive interest rates and minimal additional charges to ensure affordability.
- Rewards and Incentives (Rating: 5)
- Cards that offer valuable rewards and incentives, such as cashback, points, or travel benefits, were highly rated.
- Credit Limit Flexibility (Rating: 4)
- We considered the flexibility of credit limits, which is important for businesses with varying spending needs.
- Ease of Application and Approval Process (Rating: 3)
- In our evaluation, the ease and quickness of the application and approval process were crucial factors.
- Customer Service and Support (Rating: 4)
- We value cards backed by reliable and accessible customer service for resolving issues and queries.
- Online Management Tools (Rating: 4)
- Cards offering robust online management tools for tracking expenses and managing accounts were preferred.
- Security Features (Rating: 5)
- It was deemed essential to have enhanced security features that protect against fraud and unauthorized transactions.
- Reporting to Credit Bureaus (Rating: 3)
- An important criterion was the card’s policy on reporting to credit bureaus, as this can affect a business’s credit history.
- Additional Perks (Rating: 2)
- We looked at additional benefits such as insurance coverages, extended warranties, or free employee cards.
- Universal Acceptance (Rating: 4)
- Cards that are widely accepted nationally and internationally receive higher ratings.
A no annual fee doesn’t automatically make a credit card the best fit for every small business. With our comprehensive methodology, businesses can navigate the options, focusing on overall value and aligning with their operational goals.
8 Best Business Credit Cards: No Annual Fee Business Card
What’s the best no-annual-fee business credit card? Choose the one that’s the best fit for how your business spends. There are many different types of credit cards, and you have options, so take your time.
At account opening, some introductory credit limits are stated. Some are set based on the financial information you provide and your credit record.
In either case, the spending limit will adjust as you make card transactions as part of your business, spending on credit cards and paying your bills on time. The new limit will show on your statement.
Here are our selections for the best business credit cards. Regardless of your financial situation, these small business credit cards offer increased buying power, fraud protection, purchase protection, and additional benefits.
American Express Blue Business Plus Credit Card
- Regular APR: 13.24 to 19.24% variable.
- Credit Limits: Assigned on account opening.
- Credit Needed: Good.
Benefits: You can earn a $500 statement credit in the first 6 months by spending and making the payments on $5,000 with Blue Business Plus Credit Card from American Express. You can earn 15,000 in rewards points after spending and making the payments on $3,000 in eligible purchases in the first 3 months. You can get an account owner’s card plus employee cards. You can set individual spending limits on the employees’ cards. American Express is also known for its stellar customer service.
Chase Ink Business Unlimited Credit Card
- Regular APR: 13.24 to 19.24% variable
- Credit Limits: Starts at $3,000 and can be adjusted up to $25,000.
- Credit Needed: Good.
Benefits: With the Chase Ink Business Unlimited Credit Card, you can get $750 in Ink Business cash credit rewards after spending and making payments of $7,500 in the first three months. Free employee cards. You’ll earn 1.5% cash back on every dollar spent. After a year (with a good payment history), you’ll get an introductory 0% APR as part of Chase’s ultimate rewards. The 0 introductory APR is only offered if you have a stellar payment record. It’s also widely accepted and offers an easy-to-use online payment system.
American Express Blue Business Cash Card
- Regular APR: 13.24 to 19.24%
- Credit Limits: Preset according to your resources and adjust with a good payment record.
- Credit Needed: Good.
Benefits: Same as American Express Blue Business Plus credit card (listed above), but with Blue Business Cash Card card from American Express, you’ll get 2% cash back on all eligible net purchases annually, up to $50,000, along with top-notch customer service and other financial products available through American Express.
Spark 1.5% Cash Select
- Regular APR: 13.24 to 19.24%
- Credit Limits: Starts with $2,000 and can adjust as you make purchases and pay the bill.
- Credit Needed: Fair credit.
Benefits: With Spark Cash Select 1.5% Cash Select you can choose the 0% intro apr on purchases or choose a $500 sign up bonus. In addition to the sign up bonus you’ll get an unlimited 1.5% cash back on everyday business purchases. Capital One spark cash has no foreign transaction fee.
Capital One Club Business Credit Card
- Regular APR: 15.24 to 26.99%
- Credit Limits: Minimum $10,000.
- Credit Needed: Good.
Benefits: Every $1.5 dollars spent on Capital One Club Business Credit Card equals one point. Rewards begin at 10,000 points. Points can be used as cash rewards (applied to bills). You’ll get 5% back in club points for purchases at Cabela’s or Bass Pro Shoppes and 1.5% cash back for all other purchases.
Amazon Business Prime Credit Card
If you shop at Amazon frequently, you’ll really love the cashback percentage for the Amazon Business Prime Card.
- Annual Fee: $0
- Regular APR: 14.24 to 22.24%
Benefits: 5% Back or 90 Day Terms on U.S. purchases at Amazon Business, AWS, Amazon.com, and Whole Foods Market. Earn 5% back on the first $120,000 in purchases each calendar year with eligible Prime Membership and 1% back thereafter. 2% back on U.S. purchases at restaurants, gas stations, and wireless phone services purchased directly from service providers. 1% back on all other eligible purchases.
Delta SkyMiles Gold Card
- Regular APR: 15.74 to 24.74%
- Credit Limits: Start at $5,000 and adjust up.
- Credit Needed: Good.
Benefits: With Delta SkyMiles Gold Card you get 50,000 bonus miles in flat rate rewards and a $50 statement credit after spending and paying $2,000 in 3 months. Double miles with Delta. Double miles credits from shipping costs and restaurant tabs make this a great business cash credit card.
Comparing The Best Small Business Credit Cards with No Annual Fee
Below is a table that compares the best small business credit cards with no annual fees. This will help you quickly assess their features and choose the one that fits your business needs.
Please keep in mind that this table provides a general overview and does not include all the specific benefits and details of each card. It is important to research each card individually to fully understand the terms and benefits associated with them.
Credit Card Name | Regular APR | Credit Limit | Credit Needed | Notable Benefits |
---|---|---|---|---|
American Express Blue Business Plus | 13.24 to 19.24% variable | Assigned on account opening | Good | $500 statement credit, 15,000 rewards points |
Chase Ink Business Unlimited | 13.24 to 19.24% variable | Starts at $3,000 and adjusts up to $25,000 | Good | $750 cash credit rewards, 1.5% cash back |
American Express Blue Business Cash Card | 13.24 to 19.24% | Preset & adjusts with good payment | Good | 2% cash back on net purchases up to $50,000 |
Spark 1.5% Cash Select | 13.24 to 19.24% | Starts with $2,000 & adjusts with usage | Fair | 0% intro APR or $500 bonus, 1.5% cash back |
Capital One Club Business | 15.24 to 26.99% | Minimum $10,000 | Good | 5% back at Cabela’s or Bass Pro Shoppes, 1.5% cash back |
Discover IT Business Card | 11.99% to 22.99% | Starts at $500 | Fair | 5% cash back on Amazon, match end-of-year cash back |
Amazon Business Prime Credit Card | 14.24 to 22.24% | Not Specified | Not Specified | 5% Back on Amazon, 2% at restaurants and gas stations |
Delta SkyMiles Gold Card | 15.74 to 24.74% | Start at $5,000 and adjust up | Good | 50,000 bonus miles, Double miles with Delta |
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