What Is a No Fee Business Credit Card?
A no fee business credit card is just what it sounds like, a credit card designed for business use that does not charge an annual fee. This makes it an affordable option for small business owners looking to separate personal and business expenses.
When choosing a no fee business credit card, look for one that best aligns with how you anticipate using the card and your business’s spending categories and habits.
Opt for a card with rewards applicable to your business, strong fraud protection, transparent APRs and fees outside of annual fees, and solid customer service. Compare several options from major issuers like banks and credit card companies when deciding on the best no fee card for your needs.
Benefits of a No Annual Fee Business Credit Card
Some key advantages to consider includes:
1. Save money
No annual fee means you don’t have to pay $100-$500 or more per year just to have the card. That’s money you can put back into your business.
You can still earn rewards points, airline miles and cash back to get value from the card. Just look for a competitive rewards rate.
2.Build business credit
An open business credit card in good standing helps demonstrate that your business is creditworthy and can pay bills on time.
This contributes to your business credit profile and score with reporting agencies like Dun & Bradstreet.
3. Free employee cards
Many no annual fee business cards allow for free employee cards.
This gives employees access to company funds without needing cash advances or petty cash.
4. Business reporting
Download monthly statements that summarize business spending.
Use to categorize expenses, track spending, create reports, and simplify accounting and taxes.
5. Fraud protection
Business credit cards can offer $0 liability protection against unauthorized or fraudulent charges.
Provides important security, especially for online purchases.
The bottom line is that a no annual fee business credit card delivers tangible financial benefits and business services without charging you hundreds of dollars every year just to have the card. Be sure to compare reward structures and other features to find the best no fee card for your company’s needs and spending patterns.
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Top 5 No Fee Business Credit Cards
Looking for a business credit card with no annual fee? Here are the top 5 no fee credit card providers:
1. Ink Business Cash Credit Card
The Ink Business Cash Credit Card from Chase tops the list as a cash back card with no annual fee. Earn 5% back on the first $25,000 spent in combined purchases at office supply stores and on cable, internet and phone services each account year. You’ll also get 2% back on gas stations and restaurants up to $25,000 per year, and 1% back on everything else.
2. Wells Fargo Business Platinum Credit Card
This flexible card offers a 0% introductory APR on purchases and qualifying balance transfers for 9 months from account opening. After that, the ongoing APR is a competitive 10.74% – 21.74% variable APR on purchases and balance transfers.
You’ll also get up to $600 cell phone protection against covered damage or theft when you pay your monthly cell phone bill with your card.
READ ALSO: Wells Fargo Active Cash Card: What Credit Limit Can You Get?
3. Capital One Spark Cash Plus
The Spark Cash Plus card from Capital One is a great option for earning unlimited 2% cash back on all purchases with no limit. New cardholders can earn a $500 cash bonus once $5,000 is spent on purchases within 3 months from account opening.
READ ALSO: Spark Business Credit Card: What You Need To Know
4. Blue Business Plus Credit Card
American Express offers its Blue Business Plus card with no annual fee, 0% intro APR for 12 months on purchases, and 2X Membership Rewards® points on everyday business purchases up to $50,000 per year. After that, it’s 1 point per dollar with no maximum.
5. Bank of America Business Advantage Customized Cash Rewards Mastercard
This Bank of America card allows you to choose 3% cash back on one of eight categories, including gas, office supplies, travel and more. All other purchases earn 1% back. New accounts get $200 after making $1,000 in purchases in the first 90 days.
With any of these cards, be sure to pay your balance off each month to avoid interest charges. Read the fine print for all the details on rewards programs, benefits, and rates.
What to Look for in a No Fee Business Card
When choosing a no fee business credit card, you’ll want to consider a few key factors:
1. Rewards and Cash Back
- Look for cards that offer rewards points or cash back on common business expenses like office supplies, internet, phone bills, advertising, or shipping. Some cards tailor rewards to specific industries.
- Check if rewards can be redeemed for cash back, statement credits, gift cards, or travel. Understand any tiered reward structures and redemption minimums.
2. Introductory Offers
- Many no fee cards provide a 0% intro APR on purchases and balance transfers for 6-12 months. This can save on interest while paying down debt.
- Some cards offer a signup bonus of bonus points, miles, or statement credits after meeting minimum spend requirements in the first 3 months.
3. Payment Flexibility
- Look for due date flexibility, ability to set sub-accounts, and tools to manage employee spending. Features like custom alerts and spending limits help monitor expenses.
- Consider if the card offers integrated accounting software compatibility or reporting features to easily track spending.
FAQs: Everything You Need to Know About No Fee Business Credit Cards
Here are answers to some frequently asked questions to help you determine if a no annual fee business card is right for your company.
1. What are the main benefits of a no fee business credit card?
- No annual fee: Avoid yearly charges to use the card.
- Rewards: Many no fee cards still offer cash back, points, or miles on purchases.
- Fraud protection: Get coverage for unauthorized charges.
- Spending limit: Separate business expenses from personal spending.
2. Should I choose cash back or travel rewards?
Cash back tends to be easier to earn and redeem, making it a practical choice for many businesses. Travel rewards may get you greater perks if you frequently book flights and hotels for work. Think about your expected monthly spending and expenses.
3. What credit score do I need to qualify?
Every issuer is different, but you’ll likely need at least a 670 credit score for the best terms. Having an existing business credit profile can also strengthen an application.
4. Can I still get a sign-up bonus?
Yes! No annual fee business cards often offer lucrative welcome bonuses after meeting minimum spend requirements within a few months of opening your account. This perk alone can outweigh the lack of yearly fees.
5. What expenses should I use the card for?
Charge any legitimate business costs like office supplies, software subscriptions, advertising, travel and meals. Using it frequently helps you earn rewards faster. Just be sure to pay your balance on time each month.
6. Are there risks to having a no fee business card?
Like any credit product, responsible use is key. Be cautious of carrying long-term balances, as interest charges can accrue quickly. Also, having open access to credit may enable some overspending.
7. When should I consider an annual fee card instead?
If you regularly spend more than $5,000 a month on business expenses, premium travel rewards cards with annual fees may yield greater perks. For most small businesses though, a no fee card offers solid benefits without the risk of yearly charges.