4 business cards you’ve never heard of

When you’re constantly working to grow your business — whether as a sole proprietor or the owner of an LLC — having a business credit card or charge card can make life considerably easier. The right card can become a tool to track all of your business-related spending in one place. You can also earn cash back or other types of rewards on every purchase your business makes, such as video or recording equipment or travel expenses. Plus, many business cards for startups and sole proprietors offer card perks like free employee cards and travel insurance.

If you’re in the market for a business credit card, you may be trying to find out which popular cards are out there and which ones you may be missing out on. You may even wonder if some of the lesser-known business cards are worth checking out, even if they’re not offered by major issuers.

With that in mind, here are hidden-gem business cards you may not know about, along with a rundown of their major perks and features for those busy building their brand.

Hidden-gem business cards

The Karat Card*, issued by Cross River Bank, is a charge card designed for online content creators, from podcast hosts to social media stars. The card considers your social followers in its underwriting process, so you may be approved for a higher credit limit based on your cash flow and social stats. This card also comes with no annual fee, along with the ability to upgrade to Karat’s bookkeeping services, Karat Books, for an additional fee.

The Karat Card does not have a set rewards system. Instead, cardholders choose from eligible rewards categories, which can be changed twice a year based on spending. From there, cardholders can earn 1X to 3X points per dollar spent. Points can be redeemed for cash back, merchandise and special options like access to creator events or getting your headshot on a billboard.

Because it’s a charge card, you must pay off each statement in full.

The Brex Card is a corporate card meant for startups and growing businesses. It’s also a charge card, which means you must pay your balance in full each month. Either way, there’s no personal guarantee for this business card, no annual fee and no foreign transaction fees. This card also offers the potential for a high credit limit based on your business’s revenue or dollars raised.

Business owners who choose this card can also get unlimited free employee cards and earn rewards on all their business-related purchases. Cardholders earn up to 7X points in select spending categories, and an additional 1X points on select spending categories if they switch to daily automatic payments with a Brex business account. Points can be redeemed for travel, statement credits, hotel and airline partner transfers and more.  .

The BILL Divvy Corporate Card, which is also a charge card, comes with perks like no annual fee, free employee cards and unlimited virtual card numbers. Cardholders can also integrate their account with Divvy expense management software, and they can set up enforceable budgets for every card tied to their account. Credit lines range from $1,000 to $5 million, so this card is geared toward both small businesses as well as larger corporations.

This business card also lets you boost your rewards rate when you make frequent payments. For example, cardholders who pay off their balance monthly will earn 2X points on restaurant and hotel spending, 1.5X points on recurring software subscriptions and 1X points on everything else. However, businesses that pay off their balance weekly earn 7X points on restaurant spending, 5X points on hotels, 2X points on recurring software subscriptions and 1.5X points on everything else. However, the elevated rewards rates are only applied to the first $5,000 of spending each month. After that, all purchases earn points at the “everything else” multiplier, regardless of purchase category. You can redeem points for cash back, gift cards, statement credit and travel. 

The Capital on Tap Business Credit Card, issued by WebBank, lets business owners earn cash back and enjoy credit limits of up to $50,000, based on creditworthiness. All purchases earn 1.5 percent cash back or 2% if you switch to weekly autopay. No annual fee is required, plus you won’t pay foreign transaction fees on purchases made abroad. You can also add unlimited free employee cards to your account.

Unlike other cards in our list, this one is a traditional credit card that allows you to carry a balance. The interest rate for this card ranges from 18.49 percent to 35.99 percent variable APR for new applicants, based on creditworthiness — a large range, though the low end is below the current average card rate. The card requires a personal guaranty, meaning you will be personally liable for any debt your business accrues. 

How do business credit cards work?

Business credit cards are similar to personal credit cards in that they extend a line of credit you can borrow against. However, business credit cards are for small businesses, sole proprietorships and entrepreneurs, and they are meant for business-related purchases and spending only.

With this in mind, there are many benefits that come with having a business credit card. For example, business cards can help you track your business spending and stay organized for tax purposes, and they also typically offer rewards and a number of business cardholder perks.

Is a business credit card right for you?

A main reason all types of business owners sign up for a business card is to gain access to perks like higher credit limits, business-related discounts and even rewards on business spending. This includes business owners with hundreds of employees and all the way down to sole proprietors looking for a simple way to keep business and personal spending separate.

While major card issuers like Chase and American Express offer some of the top business credit cards today, picking a card from a lesser-known issuer has its advantages. For example, some of the cards we selected don’t require a personal guarantee. Cards that do require this kind of guarantee will hold you personally responsible, instead of just your business, for any debt the card accrues.

Before taking on a business card, analyze your business expenses. If they’re low, you may be able to handle them through a top business checking account or high-yield savings account that offers a debit card. These cards may offer the security and protections you’re looking for, without the hassle of getting a business credit card in your business name.

You can also look into whether you can qualify for a traditional card offering cash back or other perks. The best rewards credit cards and small business credit cards can be used for short-term financing to start or grow your business, though you’ll likely need good credit to excellent credit to qualify for the lowest rates and best rewards.

If you need a higher credit limit, want a better way to track your business expenses or need employee credit cards, then a business credit card will likely be a better fit for your needs.

How to choose a business credit card

To find the best business credit card for your needs, you’ll have to:

• Look at your spending habits. Figure out what your business spends the most on, and look for a card that offers bonus rewards in your top spending categories.
• Compare annual and other fees. Weigh business credit cards based on their annual fees, and make sure to check for hidden fees like foreign transaction fees.
• Determine your ideal credit limit. Figure out how much your business spends every month and every year. Then take a look at some of the best high-limit business credit cards.
• Check for eligibility requirements. Check if the cards you’re considering require a personal guarantee or have a minimum credit score requirement. Also, look for business credit cards that let you prequalify online without a hard pull on your credit, which would affect your credit score.
• Choose a card with benefits and features you want most. After you’ve considered all factors, select a business card that offers the perks, features and rewards that make the most sense for your business.

The bottom line

While top credit cards from American Express, Capital One and Chase have plenty to offer, it never hurts to think outside the box — especially if you’re an influencer, content creator or another type of sole proprietor. Some lesser-known business cards might come with decent rewards programs and higher credit limits than you’ll find elsewhere.

By comparing business cards available to you and seeing how they align with the needs and goals of your company, you can get a business card that can help you take your business to the next level.

*Information about the Karat Visa® Business Credit Card and Brex Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.