The Best Business Credit Cards for Your Side Hustle

The Best Business Credit Cards for Your Side Hustle

November 8, 2017

Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

When you’re short on cash, launching a side gig can help increase your income and gain experience in a new field. However, it’s easy to forget that your side hustle is a real business, not a hobby, and needs to be treated like a business to succeed.

When you’re just starting out, you likely used your own credit card for startup expenses, such as buying inventory or a new computer. But using your personal credit card to make business-related purchases can make it hard to separate your expenses your business expenses from your personal ones. Come tax time that can cause big problems and even cost you in tax deductions.

Getting a business credit card can not only help you keep your business and personal expenses separate, but some also offer rewards and other features that are specifically tailored to your business. They can help you save money on expenses so you can take home more profit.

Here are the top four business credit cards you should consider:

Best for everyday expenses: Capital One® Spark® Cash for Business

The Capital One® Spark® Cash for Business is a solid choice regardless of how your business spends money. You’ll earn two percent cash-back on every purchase. Plus, you’ll get a $500 sign-up bonus after you spend $4,500 within three months of opening your account.

For a business card, the Capital One® Spark® Cash for Business has a decent interest rate: 17.99% Variable APR. The best thing about it is that there’s no range based on your creditworthiness, so you know upfront what your interest rate will be.

The card does have an annual fee of $95, but the fee is waived the first year, giving you time to get the full value of your rewards. There’s also no foreign transaction fee. The card is targeted to people with good and excellent credit.

Best sign-up bonus: Ink Business Preferred ℠

If your top priority is to get a huge bonus, the Ink Business Preferred ℠ is your best bet. The card offers 80,000 bonus points after you spend $5,000 in the first three months. If you redeem those points for travel through Chase, they’re worth a whopping $1,000.

Going forward, you’ll earn 3 points per dollar on up to $150,000 spent per year in the following categories:

  • Travel
  • Shipping purchases
  • Internet
  • Cable and phone services
  • Advertising on social media sites and search engines

You’ll earn one point per dollar on everything else, and you’ll always get a 25% point boost when you use your rewards to book travel through Chase.

The card has a $95 annual fee that isn’t waived the first year, but it charges no foreign transaction fees. However, if your credit isn’t great, you could face high interest fees. It charges 16.99% to 21.99%, depending on your creditworthiness. The card is targeted to business owners with good and excellent credit.

Best for 0% APR promotion: Ink Business Cash ℠

If you have some big purchases to make to get your side hustle running, you might want to consider the Ink Business Cash ℠. The card offers a 0% introductory APR on purchases and balance transfers for 12 months and 14.24% to 20.24% APR after that.

What’s more, the card offers solid rewards. For starters, you’ll get a $300 bonus when you spend $3,000 in the first three months. Then you’ll get the following rewards rates:

  • 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year.
  • 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year.
  • 1% cash-back on everything else, with no limits.

The card has no annual fee, so you don’t need to worry about spending enough to break even. Its targeted to people with good and excellent credit.

Best for less-than-stellar credit: Capital One® Spark® Classic for business

As you can see, most of the best business credit cards require that you have a good or excellent credit history. If you’re not quite there yet, the Capital One® Spark® Classic for Business should be on your radar.

The card is targeted to people with fair or limited credit. As a result, the interest rate is a bit high at 23.99% Variable APR. But you’ll still get rewards, earning 1% cash-back on all of your purchases.

There’s also no foreign transaction fee, so you can take it overseas if necessary.

Which business card should you choose?

Before you apply for a business card for your side hustle, take a step back and consider your business’ needs. For example, getting a big sign-up bonus is exciting, but if you don’t spend enough to make up for a card’s annual fee, you may lose money in the long run.

Also, make sure your credit score is good enough to qualify for the card you want. As you do your due diligence, you’ll have a card that will be valuable for years to come.