NerdWallet’s Best Small Business Credit Cards, Winter 2012 Edition

Looking for a small business credit card? We’ll help you find one, whether you’re looking for corporate lounge access, the best signup bonuses of the season, or just some low-interest financing to get your business off the ground. Some credit cards even help you keep track of your expenses, making accounting that much easier. But business cards aren’t one size fits all: a restaurant just starting out has vastly different needs than a high-flying business traveler with five jetsetting employees. Here we’ll break down the best small business credit cards in their categories, and help you choose which one is right for you.

Best corporate rewards cards

If you aren’t using your credit card for financing and don’t carry a balance month-to-month, you can find a business rewards card that will earn you dividends on your spending. Many have corporate-friendly rewards categories like office supplies and cable, while others highlight travel benefits.

Best overall rewards card: the Chase Ink

The Ink by Chase has a lot to recommend it: it has no annual fee, it comes with a $250 signup bonus, and it gives 5% back on bonus categories. There are two versions: the Ink Cash and the Ink Classic. The former earns cash back, while the latter pays out in Ultimate Rewards Points. Chase’s rewards points are easily redeemed for gift cards, so we deem them as good as cash. Both cards give 5% back on office supplies and cable and telecom services, up to $25,000 a year; the Ink Cash gives 2% back on gas and dining while the Classic gives 2% on gas and lodging, again up to $25,000 spent a year. The cards give an unlimited 1% back elsewhere. They offer an impressive $250 signup bonus if you spend $5k in 3 months, and give you 0% APR for the first 6 months. The combination of rewards and no interest make the Chase Ink cards an affordable and worthwhile option for fee-averse entrepreneurs.

Best card for hotel guests: the Starwood American Express

One Starpoint per $1 spent may not look like much, but don’t let the nominal rewards rate fool you: Starpoints are incredibly valuable, to the point that the Starwood American Express Business card can have one of the highest rewards rates out there. The card pays out up to 5 points per $1 spent at SPG hotels, has a $65 annual fee that’s waived the first year, and a signup bonus of 25,000 points (10k after your first purchase, 15k when you spend $6,000 in 6 months).

We value Starpoints at up to 5 cents per point, 2.3 cents on average, and 1.25 cents when redeemed for airline miles. That works out to a 2.3% base rewards rate and a $575 signup bonus. On top of that, you get an impressive suite of perks: auto rental insurance, a 5-night elite status credit, and automatic Gold status if you spend $30k annually. If you’re a hotel-goer or even a frequent flyer, you’ll get great value out of the Starwood AmEx. Keep in mind, however, that it charges a 2.7% foreign transaction fee, so it’s not the best for international travelers.

Best general travel card: Capital One Spark Miles

Don’t want to be tied down to one hotel or airline? Capital One’s No Hassle Miles are just that. Formerly called the Venture Rewards Business, the Capital One Spark Miles offers 2 miles on every dollar spent, for a 2% rewards rate. Its $59 annual fee is waived in the first year, and it offers a 15,000-mile signup bonus: 10k when you spend $1,000 in 3 months, and 5k when you sign up an employee. The miles can be redeemed against any travel expense, be it gas or hotel rooms or airline taxes and fees. For example, if you spend $153.94 on airline change fees, a plane ticket and the hotel minibar service, you can use 15,394 miles to wipe the charge off your statement. Like all Capital One cards, the Spark Miles has no foreign transaction fee.

Best corporate charge cards

Charge cards, unlike credit cards, need to be paid in full each month. There’s no pre-set spending limit, but if you carry a balance month-to-month, expect high interest rates and fees. Still, if you can commit to paying off your charges, you’ll be well rewarded: the top two in this category deliver rewards and perks in the hundreds of dollars, if not thousands.

Best for corporate travelers: the AmEx Business Platinum

The American Express Business Platinum has cachet, and for good reason. It offers some of the best fringe benefits out there for corporate travelers. Among the highlights:

• A $200 credit to offset airline incidentals
• Concierge service
• Airport club access with American, Delta and US Airways
• Premium car rentals with Hertz, Avis and National
• Free hotel upgrades and benefits worth up to $450 per stay
• Access to over 1,000 airport lounges worldwide
• A complimentary companion ticket when you purchase a business or first class international ticket on partner airlines

These benefits more than make up for the $450 annual fee. Just the lounge access and airline incidentals credit alone wipe it out with room to spare. Plus, there’s no foreign transaction fee, so you can spend abroad to your heart’s content.

Best signup bonus: the Chase Ink Bold

Unlike the Chase Ink Classic and Cash, the Chase Ink Bold is a charge card. The differences don’t end there: It has a $95 annual fee (waived the first year), you earn 5% on up to $50,000 in business purcahses rather than $25,000, and it has no foreign transaction fee. Oh, and the big one: it comes with a $625 signup bonus.

You receive 50,000 Ultimate Rewards Points after spending $5k in 3 months. How do 50k points translate to $625? With the Ink Bold, your points are worth 25% more when you use them for Ultimate Rewards Travel – a perk not available on the Cash or Classic cards. It’s hard to argue with a $625 signup bonus, especially when there’s no fee the first year.

Best corporate low interest business cards

If you plan to use your credit card for financing, you should look for a low interest rate rather than rewards. The best zero interest cards will give you up to a year of no APR; credit unions often give the lowest ongoing interest rates. Here are our picks for the best cards to stave off interest payments:

Longest zero interest period: American Express SimplyCash

The American Express SimplyCash is remarkable in two ways: it has one of the longest zero interest periods, as well as a solid rewards program. The card has no interest for the first 12 months on purchases, and after that, the ongoing APR is a reasonable 12.24% for good credit. In addition to a 0% APR period, the card gives 5% cash back on wireless services and office supplies (up to $12k in purchases in each category per year), 3% back on gas, and an unlimited 1% back elsewhere. Best of all, the card has no annual fee. (The reason we don’t recommend this over the Chase Ink cards for business rewards cards is that it has no signup bonus.) It’s rare to see 12 months of no interest, so it’s even better if you can earn some juicy rewards.

Lowest interest rates: BofA Platinum Plus

If you’re looking for a low ongoing APR, your best bet might be a local credit union. Keep in mind, though, that many don’t offer business lending services. If you want a low rate for many years, the Bank of America Platinum Plus has a minimum APR of 9.24%. Keep in mind that the BofA card beats out the AmEx SimplyCash only on a very long time horizon. If you average out the interest rates, the SimplyCash’s is higher than the Platinum’s only after four years. If you’re just opening an office or are otherwise incurring large one-time expenses, the SimplyCash offers a better value.