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Rob Berger

Netspend Prepaid Card Review (Rated & Compared)

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The Netspend Prepaid Visa Card offers a range of benefits and features at a reasonable cost. Many use the card as an alternative to a checking account. Others use the reloadable prepaid card to avoid overspending and overdraft fees. We’ll cover the benefits, features and fees in this detailed review of the Netspend Prepaid Card.

Snapshot

Netspend Prepaid Visa Card Netspend Prepaid Visa Card
Apply Now
  • With Direct Deposit, you can get paid faster than a paper check.
  • No late fees or interest charges because this is not a credit card.
  • Use the Netspend Mobile App to manage your Card Account on the go and enroll to get text messages or email alerts (Message & data rates may apply).
  • Card use is subject to activation and ID verification. Terms and Costs apply.
  • Card issued by MetaBank® N.A., Member FDIC. Card may be used everywhere Visa debit card is accepted.
  • Get your tax refund direct deposited to your account and no more waiting in line to cash your check!
  • See additional Netspend® Visa® Prepaid Card details by clicking Apply Now
Read our full review here.

Pros & Cons

What we like

  • No credit check
  • No activation fee
  • No minimum balances
  • Get paid up to 2 days faster with Direct Deposit
  • Earn cash back with Payback Rewards
  • Anytime alerts
  • Mobile app

What could be better

  • ATM withdrawal fee
  • Inactivity fee

Features

Direct DepositYes
Bill PayYes
Free ATMsYes
Savings AccountYes
Cash Back RewardsYes
Mobile AppYes
Text AlertsYes
Mobile Check DepositYes
Purchase CushionYes
Virtual Card NumbersYes

Fees

FeeMonthly PlanPay-As-You-Go PlanPremier
Monthly Fee$9.95$0$5
PIN Transactions$0$2.00$0
Signature Transactions$0$1.00$0
ATM Withdrawal Fee$2.50$2.50$2.50
Cash Reload Fee$3.95$3.95$3.95
Direct Deposit Fee$0$0$0

Card Limits

Card Limit$15,000
Transaction Limit$5,000
Daily ATM Limit$940
Daily Cash Load Limit$940

Features

Direct Deposit: Get your paycheck or government benefits check deposited directly to your Netspend account. Direct deposit is free and can result in getting paid up to 2 days faster. You can also get your tax refund deposited to your card.

Mobile Check Load: Using the Netspend smartphone app, you can deposit checks by snapping a picture of the check.

Reload Locations: Load cash to the card at over 130,000 retailer locations nationwide. You can search for reload locations here.

Send Money: Send and receive money to other Netspend account holders.

Anytime Alerts: Receive text alerts for any of the following activity on your account:

  • Individual transaction details
  • Received deposits
  • Declined transactions
  • Budget notifications

You can setup alerts to be received daily, weekly or with each individual transaction. Netspend works with most major mobile phone carriers.

Netspend Anytime Alerts

Purchase Cushion: With the Premier card plan, Netspend’s purchase cushion may cover you up to $10.

Netspend mobile app

Smartphone App: With the Netspend smartphone app you can see your balance and transactions any time. It allows you to send and receive money or find the nearest reload location. The app also enables you to deposit checks by snapping a picture of the check.

Online Account Center: With the Netspend website you can see all your transactions, set up direct deposit and activate Netspend Payback Rewards. The account center also offers budgeting tools and enables you to set up Anytime Alerts.

Rewards & Benefits

Most prepaid debit cards don’t offer cash back rewards. Netspend is an exception. It offers four types of rewards:

Payback Rewards: Netspend offers cash back rewards customized to your spending patterns. These offers can be specific to certain retailers. Rewards are credited to your account.

Refer a Friend: Refer a friend who loads at least $40 to their new card, and you both receive a $20 credit.

Savings Account: Netspend offers an FDIC-insured savings account that pays up to 5.00% APY. You can transfer funds between your Netspend card and the savings account. You can also set up automatic transfers to the savings account to automate your savings.

Prescription Savings: Netspend offers a free Pharmacy Savings Card that can save you up to 50% on prescriptions.

Custom Cards: You can upload your own photo to create a personalized card. Upload an image of you, your family or your pet, for example. A photo of yourself can help avoid fraudulent use of your card if it’s ever lost or stolen.

Virtual Card Numbers: You can create up to 6 virtual card number for online or over the phone shopping. Once the transaction is complete, you can log back into your Netspend account and cancel the virtual number. That way, if it’s stolen, it can be used.

Comparison

Who the card is best for

The is best for those wanting a low-cost prepaid card and who want–

  • an alternative to a checking account
  • ability to budget spending
  • direct deposit of a paycheck or government benefits check

Who might do better with a different card

Those looking for a prepaid card for the whole family, including children, would be better served with the teen prepaid card, such as the Greenlight card.

FAQs

Is the Netspend Prepaid card safe to use?

Yes. Netspend offers a Zero Liability protection. And money transferred to the high-yield savings account is FDIC insured.

Can I get a Netspend card even if I have bad credit?

Yes. Because Netspend is not a credit card, they do not check your credit when you apply for the card.

Will using the Netspend card improve my credit score?

No. The Netspend card is not a credit card.

Is Netspend legit?

Yes. Founded in 1999, it’s served more than 10 million customers and counting.

Rating

Netspend Prepaid Visa Card Rating

Rob Berger

Features
Fees & Limits
Mobile App
Benefits

Summary

The Netspend Prepaid Visa Card offers a wide range of features making it ideal as a banking alternative. The fees are reasonable given the benefits, particularly for those using direct deposit.

4.8

Still haven’t found what you want? Check out are complete list of the best prepaid debit cards.

The Best CD Rates January 2021

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Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.

Best CD Rates

January 2021 CD Rate Update

The big question surrounding certificates of deposit is this same this month as it was last month–why would anybody invest in one? The rates are so low, and they declined even more over the last month. Further, you can get comparable rates from online savings account. Perhaps the only argument in favor of a CD is that your rate is locked in should rates go lower. While anything’s possible, lower rates seem unlikely.

Even Live Oak Bank, which had raised its rate on a 5-year CD lowered again this month. If you still want a certificate of deposit, here are some of the best yields we can find.

Best 1 Year CD Rates

The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.

BankAPYMin. Deposit
Comenity Direct0.60%$1,500
CFG Bank0.67%$500
Marcus0.55%$500
Live Oak Bank0.65%$2,500
Synchrony Bank0.60%$2,000
CIT Bank0.30%$1,000
Ally Bank0.60%—

Best CD Rates Overall

CFG Bank

Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.

CIT Bank

CIT Bank

CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.

BMO Harris Bank

BMO Harris Bank

BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.

Ally Bank

Ally Bank

Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)

Marcus by Goldman Sachs

Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.

Comenity Direct

Comenity Bank

Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.

CD Interest Calculator

Chase Bank Bonus Offers in 2021–$300, $200, $100

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Chase Bank regularly offers bonuses on new accounts. The bonuses, however, don’t last long. We regularly update this page with the latest Chase Bank promotions.

Chase $300 Premier Plus Checking [Expired]

To receive the $300 checking bonus:

  1. Open a new Chase Premier Checking account by 7/20/2020, which is subject to approval;
  2. Set up direct deposit. Have your direct deposit made to this account within 90 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government.
  3. Chase will deposit the bonus in your new account within 10 business days.

Note: The checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance.

To avoid the $25 monthly service fee on the Premier Checking account, you must have:

  • An average beginning day balance of $15,000 or more in any combination of this account and linked qualifying Chase checking, savings, and other balances; or
  • Have a linked qualifying Chase first mortgage enrolled in automatic payments from your Chase account 

Chase $200 Total Checking Bonus

To receive the $200 checking bonus:

  1. Open a new Chase Total Checking account by 07/20/2020, which is subject to approval;
  2. Set up direct deposit. Have your direct deposit made to this account within 60 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government.
  3. Chase will deposit the bonus in your new account within 10 business days.

Note: The checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance.

To avoid a $12 monthly service fee on the Total Checking account, you must have:

  • Direct deposit totaling $500 or more made to the account; or
  • A balance at the beginning of each day of $1,500 or more in the account; or
  • An average beginning day balance of $5,000 or more in any combination of this account and linked qualifying Chase checking, savings, and other balances.

Chase $100 College Checking Bonus

To receive the $100 College Checking bonus:

  1. Open a new Chase College Checking account, which is subject to approval,
  2. Complete at least 10 qualifying transactions* within 60 days of account opening. 
  3. Chase will deposit the bonus in your new account within 10 business days.

*Qualifying transactions include the following:

  • Debit card purchases
  • Online bill payments
  • Checks paid
  • Chase QuickDeposit
  • Chase QuickPay with Zelle
  • Direct deposits

For college students 17 to 24 years old at the time you open the account, you’ll pay no monthly service fee for 5 years while in college.

Chase $150 Savings Bonus [Expired]

The Chase $150 Savings Account Bonus is no longer available. We will update this page when it comes back.

To receive the $150 savings bonus:

  1. Open a new Chase SavingsSM account, which is subject to approval.
  2. Deposit a total of $10,000 or more in new money into the new savings account within 10 business days of account opening; AND
  3. Maintain at least a $10,000 balance for 90 days from the date of deposit.

Is a Chase Bank Bonus Worth it?

As nice as a bonus is, it’s a one-time payment. In contrast, we usually stay with our banks for years, if not a lifetime. So should you choose Chase Bank in exchange for a couple of hundred bucks?

By itself, no. The bonus is a nice, well, bonus if you plan to bank with Chase anyway. For many, one bank is as good as another, and if Chase is convenient to where you work and live, banking at Chase makes sense.

That said, bonuses on checking accounts are generally a good deal. You won’t make much in the way of interest, but most don’t keep a lot of money in a checking account anyway.

In contrast, with savings accounts, your best bet is to go with a high-yield account.

Chase Bank Details

  • Credit Pull: Soft Pull from ChexSystems
  • Minimum Deposit Requirement: $25 minimum deposit to open an account.
  • Availability: United States, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Michigan, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, West Virginia
  • ATM Network: 16,000 Chase ATMs & 4,900 branches
  • Routing (ABA) number: Various
  • Established: 1824
  • FDIC certificate: 628
  • Phone Number: 1-800-935-9935

Chase Bank Account Bonus Summary

Best Online Savings Account Rates (January 2021)

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The best rates for saving an emergency fund or other short term goals are through online banks. They pay the highest interest with the lowest fees. Here is a regularly updated list of the best online savings account rates offered today.

best online savings account rates

What follows is an extensive list of the online savings accounts that pay the best rates. I’ve included information on monthly fees and any signup bonuses these banks offer.

January 2021 Online Savings Rates Update

The bad news is that rates continue to fall at many banks. The good news, if you can call it that, is some online banks maintained their rates. True, their rates are in the cellar, but it’s better than watching them go through the floor. Most online banks now pay 0.50% APY on savings. There are, however, a few exception.s

The best online savings rates today come from Fintech banks. Aspiration currently pays 1.00% APY, which is one of the highest rates available anywhere. In terms of more “traditional” online banks, CIT Bank pays 0.50% APY on its money market account. Several other banks also pay 50 basis points. And then there’s Vio bank (see below) that pays 0.66% APY as of January 2, 2021.

Best Online Savings Accounts

Chime–Editor’s Pick

Chime combines the best of online banks with the technology of a startup. It pairs an award-winning app and debit card with an FDIC-insured bank. It pays one of the highest APYs available on a savings account. And it does this with virtually no fees and free ATMs.

Chime Chime
Open an Account
  • Get paid up to 2 days early with direct deposit
  • Track your account balances and daily transactions with the Chime mobile app
  • Get daily balance notifications and instant transaction alerts
  • Send money instantly to friends
  • Chime Visa® Debit Card
  • 0.50% APY
  • No monthly fees.
  • No minimum balance requirements.
  • 38,000+ fee-free MoneyPass® and Visa® Plus Alliance ATMs.

Aspiration–Best for the Environment

Aspiration is best know for its efforts to save the planet. Among other things, you can plant a tree each time you round-up a purchase. In addition, it offers virtually no-fee banking and a very competitively APY on savings.

Aspiration Aspiration
Open an Account
  • Unlimited fee-free ATM withdrawals at Allpoint ATMs
  • Up to 10% cash back on debit card purchases
  • Deposits are fossil fuel-free
  • Plant a tree with every roundup
  • Up to 1.00% APY

CIT Bank Money Market Account–Best for Online Banks

CIT Banks’ money market account pays one of the highest available APYs. It’s also an online bank that charges very few fees.

Vio Bank

  • APY: 0.66
  • Minimum Deposit: $100
  • Compounded: Daily
  • Monthly Fee: $0
  • Credit Check: Soft pull
  • Website: https://www.viobank.com/online-savings-account
  • FDIC #: 4063
  • About: Vio Bank is the online division of MidFirst Bank, established on February 28, 1911.

HSBC Direct

  • APY: 0.15
  • Minimum Deposit: $1
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.hsbcdirect.com/savings/
  • FDIC #: 57890
  • About: HSBC Direct was established in 2004.

Marcus by Goldman Sachs

  • APY: 0.50
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.marcus.com/us/en/savings/high-yield-savings
  • FDIC #: 33124
  • About: Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA, which was established in 1990.

CIT Bank–Savings Builder

  • APY: 0.45 (Savings Builder Account)
  • Requirements: To earn this rate, you must maintain a minimum balance of $25,000 OR make monthly deposits of $100.
  • Note: CIT Bank also offers a high-yield savings account currently paying APY.
  • Minimum Deposit: $100
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://cit.com/cit-bank/bank/savings/savings-builder-account/
  • FDIC #: 58978
  • About: CIT Bank was established in 2009.

American Express National Bank

  • APY: 0.50
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.americanexpress.com/personalsavings/home.html
  • FDIC #: 27471
  • About: American Express National Bank was established in 1989.

Barclays Bank

  • APY: 0.45
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.banking.barclaysus.com/online-savings.html
  • FDIC #: 57203
  • About: While Barclays traces its roots back to 1690, the U.S. bank was established in 2001.

Discover Bank

  • APY: 0.50
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.discover.com/online-banking/savings-account/
  • FDIC #: 5649
  • About: Discover Bank traces its roots to 1911, then the Greenwood Trust Company. Discover acquired Greenwood in 1985 and changed the name to Discover Bank in 2000.

Ally Bank

  • APY: 0.50
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Support: 24/7 support via call, chat or email.
  • Website: https://www.ally.com/bank/online-savings-account/

Capital One Bank

  • APY: 0.40
  • Minimum Deposit: $0
  • Compounded: Daily
  • Monthly Fee: $0
  • Website: https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
  • FDIC #: 33954
  • About: Capital One Bank was established in 1994.

Online Savings Account Rate Comparison

BankAPYMonthly FeeMin. Deposit
Vio Bank0.66%$0$100
HSBC Direct0.15%$0$1
Marcus by Goldman Sachs0.50%$0$0
CIT Bank0.45%$0$100
American Express0.50%$0$0
Barclays Bank0.45%$0$0
Discover Bank0.50%$0$0
Ally Bank0.50%$0$0
Capital One0.50%$0$0

Resource: If you are looking for a savings account with a signup bonus, check out our list here.

FAQs

How many withdraws can I make each month?

Savings accounts are limited by federal regulation to 6 withdraws per month. If you exceed this amount, your bank could charge you a fee or close your account. Note that making a withdrawal through a teller does not count toward this limit.

Are online savings accounts FDIC insured?

Yes. The banks in our list are all FDIC insured.

Are online savings accounts safe?

Yes. As noted above, online savings accounts are FDIC insured. In addition, online banks use the same internet security protocols as brick and mortar banks use for their online access.

Best Online Banks January 2021 (Ranked & Reviewed)

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Internet-only banks have grown in popularity. By offering the best interest rates and no fees, savers have poured billions of dollars into financial institutions with no branches. To help you navigate this new world, we’ve assembled this list of the best online banks for your money.

best online banks

January 2021 Online Banking Update

The past month saw interest rates continue to decline. Virtually every online bank in my list reduced rates on savings accounts, certificates of deposit or both. For most online banks, 0.50% APY seems to be the going rate for savings accounts. The standout exception is Aspiration, which pays up to 1.00% APY.

Oddly enough, the Netspend prepaid card of all things pays 5.00% APY on up to $1,000 in savings. The cap is a significant limitation, but ideal for those wanting to earn a high yield.

On the bright side, inflation remains at historic lows. According to the latest data from the BLS, prices rose just 1.2% over the past 12 months. Of course, that means we are all losing money on an after-inflation basis in deposit accounts. Nevertheless, online banks still do pay the highest interest rates available.

Here are my top picks for the best online banks, followed by a complete list of internet banks that are worth considering.

CIT Bank CIT Bank
Open an Account
  • Earn over 7x the national average
  • Quick and easy access to funds
  • No monthly service fees
  • 24/7 secure & award-winning banking
  • FDIC insured
  • Deposit checks remotely and make transfers with the CIT Bank mobile app
Aspiration Aspiration
Open an Account
  • Unlimited fee-free ATM withdrawals at Allpoint ATMs
  • Up to 10% cash back on debit card purchases
  • Deposits are fossil fuel-free
  • Plant a tree with every roundup
  • Up to 1.00% APY
Chime Chime
Open an Account
  • Get paid up to 2 days early with direct deposit
  • Track your account balances and daily transactions with the Chime mobile app
  • Get daily balance notifications and instant transaction alerts
  • Send money instantly to friends
  • Chime Visa® Debit Card
  • 0.50% APY
  • No monthly fees.
  • No minimum balance requirements.
  • 38,000+ fee-free MoneyPass® and Visa® Plus Alliance ATMs.

Best Full-Service Online Banks

These full-service online banks could serve as your only financial institution. In addition to savings and CD accounts, they offer checking accounts and other services that can accommodate most banking needs.

CIT Bank

I’ve used a lot of online banks, starting with ING Direct’s Orange account more than 10 years ago. Today, there are several online banks that are very good. I’ve listed them below. But if I had to pick one, it would be CIT Bank.

Having opened a money market account at CIT Bank several years ago, I can tell you two things about this financial institution. First, it tends to pay some of the highest rates available on deposit accounts. Second, its website could be better. It was easy to use but not as polished as I would have liked. Still, I go to banks for their rates and low fees, not a fancy website.

  • Account Types: Savings, Checking, Money Market, Savings Builder, CDs, No Penalty CDs, Jumbo CDS, Rampup CDs
  • CD Terms: 12 to 60 months
  • Bank Branches: Limited
  • Free ATMs: CIT Bank doesn’t charge ATM fees and reimburses up to $15/month in other bank’s ATM fees.
  • Other Financial Services: Home loans
  • FDIC Certificate No.: 58978
  • Free Credit Score: No
  • Credit Inquiry: Soft pull
  • Year Established: 2009 as OneWest Bank, FSB, and changed its name to CIT Bank on August 3, 2015.
  • Other Features: Zelle, bill pay, mobile deposit

Ally Bank

Ally Bank is arguably the best all-around online bank. It offers every bank account type, auto and home loans, and investing services. It could serve as a place to park your cash for higher rates, which is how we use it, or as your primary bank. Its website and mobile app are very easy to use.

  • Account Types: Savings, Checking, Money Market, High-Yield CD, Raise Your Rate CD, No Penalty CD, IRA Savings, IRA CDs
  • Savings APY: 0.50
  • CD Terms: 3 to 60 months
  • Bank Branches: No
  • Free ATMs: Yes–Allpoint Network and Ally reimburses up to $10 a month in fees charged by other ATMs.
  • Other Financial Services: Home loans, auto loans, investing
  • FDIC Certificate No.: 57803
  • Free Credit Score: Free FICO score access with auto loan
  • Credit Inquiry: Soft pull
  • Year Established: 2004
  • Other Features: Zelle, bill pay, mobile deposit

Discover Bank

Best known for its credit cards, Discover Bank also offers a full range of deposit accounts. Its rates are competitive and its fees are low. I’ve also found its website to be easy to navigate.

  • Account Types: Checking, Savings, MMA, CDs, IRA CDs
  • Savings APY: 0.50
  • CD Terms: 3 to 120 months
  • Bank Branches: No
  • Free ATMs: Yes
  • Other Financial Services: Student loans, personal loans, home loans, credit cards
  • FDIC Certificate No.: 5649
  • Free Credit Score: Yes
  • Credit Inquiry: Soft pull
  • Year Established: Founded in 1911 as the Greenwood Trust Company, it changed its name to Discover Bank in 2000.
  • Other Features: Checking debit pays 1% cashback on up to $3,000 in debit card purchases each month, online bill pay

Capital One Bank

Capital One Bank can easily serve as your full-service bank. It offers all of the accounts most would need, and it even has bank branches in about ten states. Its rates are competitive and its fees are low.

  • Account Types: Checking, Savings, Kids Savings, MONEY (Teen checking), CDs, IRA Savings, IRA CDs
  • Savings APY: 0.40
  • CD Terms: 6 to 60 months
  • Bank Branches: Yes
  • Free ATMs: Yes
  • Other Financial Services: Auto loans, credit cards
  • FDIC Certificate No.: 33954
  • Free Credit Score: Yes
  • Credit Inquiry: Soft pull
  • Year Established: 1994
  • Other Features: Accounts for children, mobile deposit, online bill pay, overdraft options
  • More info: Capital One Bank review

HSBC Direct

While not the most popular bank on the list, it offers one of the highest savings account rates available today.

  • Account Types: Checking, Savings, CDs
  • Savings APY: 0.15
  • CD Terms: 6 to 24 months
  • Bank Branches: Yes
  • Free ATMs: Yes
  • Other Financial Services: N/A
  • FDIC Certificate No.: 57890
  • Free Credit Score: No
  • Credit Inquiry: Soft pull
  • Year Established: 2004
  • Other Features: Bill pay, mobile check deposit

Best Limited-Service Online Banks

Marcus by Goldman Sachs

When it comes to deposit accounts, Marcus does one thing and does it well–savings accounts. It pays one of the highest APYs available, with no monthly fees.

  • Account Types: Savings
  • Savings APY: 0.50
  • CD Terms: N/A
  • Bank Branches: No
  • Free ATMs: N/A
  • Other Financial Services: Personal loans
  • FDIC Certificate No.: 33124
  • Free Credit Score: No
  • Credit Inquiry: N/A
  • Year Established: 1990
  • Other Features: Mobile app

American Express Bank

American Express Bank offers limited deposit accounts–Savings and term CDs. As such, it’s not intended to replace your existing bank. It does, however, pay competitive rates.

  • Account Types: Savings, CDs
  • Savings APY: 0.50
  • CD Terms: 6 to 60 months
  • Bank Branches: No
  • Free ATMs: N/A
  • Other Financial Services: Personal loans, credit cards
  • FDIC Certificate No.: 35328
  • Free Credit Score: No, although available with Amex credit cards.
  • Credit Inquiry: N/A
  • Year Established: 2000
  • Other Features: None

Barclays Bank

Barclays Bank is another alternative for those looking to get a higher rate on savings or CDs. Its rate is competitive among online banks.

  • Account Types: Savings, CDs
  • Savings APY: 0.45
  • CD Terms: 3 to 60 months
  • Bank Branches: No
  • Free ATMs: N/A
  • Other Financial Services: N/A
  • FDIC Certificate No.: 57203
  • Free Credit Score: No
  • Credit Inquiry: N/A
  • Year Established: Founded in 2001 as Juniper Bank. Change its name to Barclays Bank in 2006.
  • Other Features: Mobile check deposit

Best Fintech Banking Services

Fintech companies have elbowed their way into the banking world over the last few years. These companies partner with an FDIC-insured bank, layering online and mobile apps on top of traditional banking.

Note that most Fintech banks do not pay the highest rates, although generally better than brick and mortar banks. What they do offer are unique tools and user experiences to help consumers manage their money.

Aspiration

Aspiration aims to combine banking and investing with social responsibility. It gives 10% of its profits to charity and offers socially-responsible investing through its Redwood Fund.

  • Account Types: Spend & Save Cash Management account
  • Savings APY: Up to 1.00
  • CD Terms: N/A
  • Bank Branches: No
  • Free ATMs: Yes, at all Allpoint ATMs
  • Other Financial Services: Investing, traditional IRA
  • FDIC Insurance: Cash balances in the Aspiration Spend & Save cash management account are eligible for FDIC insurance* by being swept to FDIC Member institutions.
  • Free Credit Score: No
  • Credit Inquiry: Soft pull
  • Year Established: Founded in 2013, opened for business in 2015.
  • Other Features: Mobile check deposit, cell phone protection insurance, up to 10% cash back on purchases, bonus rewards for spending at socially-conscious businesses, digital debit card

Chime

Think of Chime as a cash management account. It’s designed to help you budget your money and save for a rainy day. It charges virtually no fees but pays little in the way of interest. For that reason, Chime could serve as a checking account alternative, but not where you want to stash a lot of cash.

  • Account Types: Checking, Savings
  • Savings APY: 0.50
  • CD Terms: N/A
  • Bank Branches: No
  • Free ATMs: Yes, at all MoneyPass ATMs
  • Other Financial Services: None
  • FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
  • Free Credit Score: No
  • Credit Inquiry: N/A
  • Year Established: 2013
  • Other Features: Chip-enabled Visa debit card, fee-free overdraft, mobile banking, get paid up to two days early with direct deposit

Simple

Of the Fintech banks, this is my favorite. It offers checking, savings, and CDs, and pays a competitive interest rate on its savings account. It also comes with excellent tools to budget your money and save for the future.

  • Account Types: Checking, Savings, CDs
  • Savings APY: Up to 0.50
  • CD Terms: 12-month, no penalty for early termination
  • Bank Branches: No
  • Free ATMs: Yes, at all MoneyPass and Visa Plus Alliance ATMs
  • Other Financial Services: None
  • FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
  • Free Credit Score: No
  • Credit Inquiry: N/A
  • Year Established: 2009
  • Other Features: Mobile check deposit, Visa debit card,

Online Banks FAQs

Are online banks safe?

Yes. They offer the same or similar online security features as traditional brick and mortar banks. Their deposits are also insured by the FDIC.

What are the best online banks?

That depends on your specific financial needs. For the best savings rates, online banks are the clear winner over traditional banks. As a full-service bank, many online banks offer a full range of accounts, including savings, checking, CDs, and even investment accounts.

Do online banks charge fees?

Most online banks do not charge monthly fees. Some do charge certain fees, such as overdraft fees.

Do online banks offer free ATM withdraws?

Most online banks do have free ATM withdraws from their participating network of ATMS.

21 Best Small Business Credit Cards of 2021

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Small business credit cards offer easy access to credit along with excellent rewards. The top offers come with significant signup bonuses and fraud protection. Here are the best business credit cards of 2021.

best small business credit cards

Since launching my own small business in 2007, I’ve used a business credit card. While some entrepreneurs choose not to use a business card, I’ve always found it a good choice for several reasons.

For one thing, using a separate business credit card makes keeping my business expenses separate from my personal expenses a snap. Whether your business has loads of expenses or only a few, good bookkeeping is essential. Getting into the habit of charging all business-related expenses to a separate business credit card early on streamlines bookkeeping and makes tax time easier.

There’s an argument to be made, of course, for simply using a separate personal credit card for business expenses. And some solopreneurs go this route. The one major advantage to using a business credit card, however, is that it allows you to build your business’s credit. If there comes a point when you need a small business loan to expand, you’ll need this credit ready and waiting.

One final reason to consider using a business card is that it’s easier to share expenses safely. You can quickly give your partner or employees access to the company’s money through the card. And individual card-level expense tracking means you know who is spending money on what at any given time.

Business credit cards do have some caveats, which we’ll talk about below. But, first, let’s discuss our top business credit card picks for 2021.

Best Overall Business Credit Cards for 2021

Chase Ink Business Cash Credit Card

The Chase Ink line has been very popular among business owners, and with good reason. These cards are easy to use and offer great rewards. The Chase Ink Business Cash Credit Card is a great card for smaller businesses looking for excellent rewards with a simple cash back structure. You can also scale it up as you start spending more for your business. It offers flexible rewards, and rewards can be redeemed in a myriad of ways.

With all Chase Ink options, you can redeem rewards in several different ways. You can use cash to offset spending right away. Alternatively, you can use the Chase Ultimate Rewards program to buy travel tickets, hotel stays, gift cards, or other items.

The Chase Ink Business Cash Credit Card is an excellent card for business owners with good credit who won’t spend enough to outstrip the annual fee of the Chase Ink Business Preferred Credit Card (see below). It offers great cash back on spending categories typically used by business owners, as well.

Chase Ink Business Cash Credit Card Chase Ink Business Cash Credit Card
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  • Signup Bonus: Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • 5% Rewards: Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • 2% Rewards: Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
  • 1% Rewards: Earn 1% cash back on all other card purchases with no limit to the amount you can earn
  • Intro APR: 0% introductory APR for 12 months on purchases
  • No Annual Fee

Blue Business Cash Card from American Express

The Blue Business Cash Card from American Express is one of the few 2% cash back credit cards. It does have a spending cap (see below). However, it offers up to $300 in bonus statement credits, all with no annual fee.

Blue Business Cash Card from American Express Blue Business Cash Card from American Express
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  • Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%.
  • Cash back earned is automatically credited to your statement.
  • Spend beyond your credit limit with Expanded Buying Power.
  • The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the card, your payment history, credit record, financial resources known to us and other factors.
  • 0% intro APR on purchases for 12 months from the date of account opening, then a variable rate based on your creditworthiness and other factors as determined at the time of account opening.
  • No Annual Fee
  • Terms Apply

Chase Ink Business Preferred Credit Card

As you can see, we like the Chase Ink line here at allCards. The Chase Ink Business Preferred Credit Card is a bit different from the Chase Ink Business Cash Credit Card above, but offers some excellent rewards. This can be a good card if you’re a big spender for your business, especially in certain categories. This card does have an annual fee, but it makes up for that fee with great rewards.

The card gives you a variety of options for redeeming points, including travel, cash back, gift cards, and more. If you have great credit and spend big for your business, this is a great card to consider. Although it has a $95 annual fee, the signup bonus alone is worth $1,000 in travel. That bonus makes the Chase Ink Business Preferred Credit Card one of the most lucrative rewards cards available today.

Chase Ink Business Preferred Credit Card Chase Ink Business Preferred Credit Card
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  • Signup Bonus: Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening.
  • Bonus Points worth $1,250 toward travel redeemed through Chase Ultimate Rewards®
  • 3X Points Reward: Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
  • 1X Points Reward: Earn 1 point per $1 on all other purchases with no limit to the amount you can earn
  • Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards Redeem points for travel, cash back, gift cards and more
  • No foreign transaction fees
  • Employee cards at no additional cost
  • $95 Annual Fee
Read our full review here.

Cash Back Business Credit Cards

The Blue Business Plus Credit Card from American Express

The The Blue Business Plus Credit Card from American Express pays 2X Membership Rewards points on every purchase (up to an annual cap). It also offers up to $300 in statement credits and charges no annual fee. The card is ideal for those who want flexibility in how they redeem their rewards.

The Blue Business Plus Credit Card from American Express The Blue Business Plus Credit Card from American Express
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  • Earn 2X points on everyday business purchases such as office supplies or client dinners.
  • 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • 0% intro APR on purchases for 12 months, then a variable rate based on your creditworthiness and other factors as determined at the time of account opening.
  • No Annual Fee
  • Terms Apply

Chase Ink Business Unlimited

The third Chase Ink card is the Chase Ink Business Unlimited. It’s the newest business credit card in the lineup. It offers a $500 signup bonus and 1.5% cash back, all with no annual fee. The Chase Ink Business Unlimited is an excellent card for business owners looking for cash rewards without the annual fee.

Chase Ink Business Unlimited Chase Ink Business Unlimited
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  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months
  • Earn unlimited 1.5% cash back on every purchase
  • 0% introductory APR for 12 months on purchases
  • No Annual Fee
Read our full review here.

Capital One Spark Cash for Business

A low-fee card with good rewards, this is a great general-purpose credit card for your small business. It offers a flat 2% cash back across all spending categories, which makes it excellent for everyday use. You won’t have to worry about which categories are earning you a bonus, or keep track of rotating categories.

If you’re interested in using a business credit card for its overall benefits, but you don’t want to play the credit card game of netting the best cash back benefits on individual categories, this is a great option.

Capital One Spark Cash for Business Capital One Spark Cash for Business
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  • 2% Cash Back: Earn 2% cash back on all purchases. This is one of the few credit cards offering 2% in rewards
  • Welcome Bonus: Earn $500 cash bonus after spending $4,500 on purchases within the first 3 months
  • $0 intro annual fee for the first year; $95 after that
  • Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount
  • Get employee cards at no additional cost, and earn rewards from their business spend

The Plum Card® from American Express

You can think of the The Plum Card® from American Express as a 1.5% cash back business card. You don’t get typical cash back rewards. Instead, you get a 1.5% discount when you pay early. You can also take up to 60 days to pay with no interest.

The Plum Card® from American Express The Plum Card® from American Express
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  • Early Payoff Discount: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
  • Take up to 60 days to pay with no interest, if you pay your minimum due.
  • Additional Employee Cards at no annual fee – and an early pay discount on employee spending.
  • No Foreign Transaction Fees.
  • Introductory annual fee of $0 for the first year, then $250
  • Terms & Restrictions Apply.

Capital One Spark Cash Select for Business

Capital One Spark Cash Select for Business Capital One Spark Cash Select for Business
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  • Welcome Bonus: Earn $200 cash bonus once you spend $3,000 on purchases within 3 months from account opening
  • Earning unlimited 1.5% cash back
  • Save on interest with 0% intro APR on purchases for 9 months
  • No annual fee
  • Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount
  • Get employee cards at no additional cost, and earn rewards from their business spend

Capital One Spark Classic for Business

Capital One Spark Classic for Business Capital One Spark Classic for Business
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  • No annual fee
  • Earn 1% cash back on every purchase
  • Build business credit with responsible use
  • Fraud coverage
  • No foreign transaction fees
  • Year-End Summaries and employee cards at no extra cost

Travel Rewards Business Credit Cards

The Business Platinum Card from American Express

The The Business Platinum Card from American Express is one of the most rewarding business credit cards. It offers a generous welcome bonus and up to 5X Membership Rewards per dollar charged to the card.

The Business Platinum Card from American Express The Business Platinum Card from American Express
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  • Welcome Offer: Earn up to 75,000 Membership Rewards® points after you spend $15,000 on qualifying purchases within your first 3 months of card membership.
  • Rewards:
    • Get 5X Membership Rewards points on flights and prepaid hotels on amextravel.com.
    • Get 50% more Membership Rewards points on each eligible purchase of $5,000 or more.
    • 35% Airline Bonus: Use Membership Rewards Pay with Points for all or part of a flight with your selected qualifying airline, and you can get 35% of the points back, up to 500,000 bonus points per calendar year.
    • Get 35% points back on all First and Business class flights, with all airlines available through American Express Travel.
  • Terms Apply

American Express Business Gold Card

The American Express Business Gold Card is a lower cost and lower reward option to the Platinum card. Its list of rewards and benefits, however, is still impressive.

American Express Business Gold Card American Express Business Gold Card
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  • Welcome Offer: Earn 35,000 bonus points after spending $5,000 within your first 3 months.
  • REWARDS: Get 4X Membership Rewards® points on the 2 select categories where your business spent the most each month (applies to the first $150,000 in combined purchases from these 2 categories each calendar year).*
  • BONUS: Get 25% points back after you use points for all or part of an eligible flight booked with Amex Travel, up to 250,000 points back per calendar year.*
  • Get up to 1 year free on subscriptions to both G Suite Basic for up to 3 users and ZipRecruiter Standard, a combined value up to $3,200.*
  • A flexible payment option to help manage cash flow on purchases of $100 or more.*
  • Connect to Quickbooks, access SpendManager?, receive a Year-End Summary, and more.*
  • Add EMPLOYEE CARDS with a no annual fee option. Earn rewards on employee purchases and track employee expenses with spending limits, alerts, and summary reports.*
  • *Terms Apply

Capital One Spark Miles for Business

Capital One Spark Miles for Business Capital One Spark Miles for Business
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  • Welcome Bonus: Earn 50,000 bonus miles after spending $4,500 on purchases within the first 3 months
  • Earn 2 miles per $1 on every purchase
  • Earn 5X miles on hotel and rental car bookings through Capital One Travel using a Spark Miles card
  • $0 intro annual fee for the first year; $95 after that
  • Transfer your miles to over 10 leading travel loyalty programs like JetBlue and Emirates
  • There’s no limit to the number of miles you can earn
  • Redeem miles for travel, cash back, gift cards and more
  • Get one statement credit for either the $85 TSA PreCheck application fee or the $100 Global Entry application fee
  • No foreign transaction fees and fly on any airline, anytime, with no blackout dates or seat restrictions

Capital One Spark Miles Select for Business

Capital One Spark Miles Select for Business Capital One Spark Miles Select for Business
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  • Welcome Bonus: Earn a one-time bonus of 20,000 miles once you spend $3,000 on purchases within 3 months from account opening
  • Earn 1.5 miles per $1 on every purchase
  • Save on interest with 0% intro APR on purchases for 9 months
  • Pay no annual fee or foreign transaction fees
  • There’s no limit to the amount of miles you can earn
  • Fly on any airline, anytime, with no blackout dates or seat restrictions

Hotel Rewards Business Credit Cards

Marriott Bonvoy Business American Express Card

The Marriott Bonvoy Business American Express Card is ideal for businesses that frequent Marriott brand hotels. The card offers an excellent signup bonus and up to 6X in rewards.

Marriott Bonvoy Business American Express Card Marriott Bonvoy Business American Express Card
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  • Limited Time Offer: Earn 75,000 bonus Marriott Bonvoy points after spending $3,000 within the first 3 months
  • Earn 6x points at participating Marriott Bonvoy hotels
  • Earn 4x points at U.S. restaurants, U.S. gas stations, U.S. purchases on shipping, and wireless telephone services purchased from U.S. service providers
  • Earn 2x points on all other eligible purchases
  • Receive 1 Free Night Award each year after your Card account anniversary you can use at a participating hotel.
  • Enjoy complimentary Marriott Bonvoy Silver Elite status.
  • Earn Gold Elite status after spending $35,000 on eligible purchases on your card in a calendar year.
  • Annual fee is $125

Hilton Honors American Express Business Credit Card

The Hilton Honors American Express Business Credit Card is the business card for those who stay at Hilton brand hotels. It offers a generous signup bonus and up to 12X in rewards on purchases.

Hilton Honors American Express Business Credit Card Hilton Honors American Express Business Credit Card
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  • Welcome Offer: Earn 130,000 Hilton Honors Bonus Points after you spend $3,000 in eligible purchases in the first 3 months of Card Membership.
  • Earn 12X at hotels and resorts in the Hilton portfolio
  • Earn 6X on Select Business & Travel Purchases
  • Earn 3X Everywhere Else. Terms & Limitations Apply.
  • Enjoy complimentary Gold status with your Hilton Honors Business Card.
  • Earn a Weekend Night Reward from Hilton Honors after you spend $15,000 in purchases on your card in a calendar year.
  • Earn another Weekend Night Reward from Hilton Honors after you spend an additional $45,000 in purchases on your card in the same calendar year.
  • Enjoy 10 free airport lounge visits each year once enrolled in complimentary Priority Pass(TM) Select membership, which offers access to over 1,000 lounges in over 120 countries.
  • Terms apply.

Airline Business Cards

Southwest Airlines Business Credit Cards

There are two Southwest Airlines business credit cards:

They are both great cards. One comes with an annual fee and higher rewards, the other with no annual fees and slightly lower rewards.

Southwest Rapid Rewards Premier Business Credit Card

Southwest Rapid Rewards Premier Business Credit Card Southwest Rapid Rewards Premier Business Credit Card
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  • Limited Time Offer: Earn 60,000 points after you spend $3,000 on purchases in the first 3 months your account is open.
  • Annual Bonus: Earn 6,000 bonus points after your Cardmember anniversary.
  • 2X Rewards: Earn 2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases.
  • 1X Rewards: Earn 1 point per $1 spent on all other purchases.
  • Earn points on employee spending
  • No blackout dates when you redeem points, no seat restrictions, bags fly free®, and no change fees
  • No foreign transaction fees

Southwest Rapid Rewards Performance Business Credit Card

Southwest Rapid Rewards Performance Business Credit Card Southwest Rapid Rewards Performance Business Credit Card
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  • Welcome Offer: Earn 70,000 points after you spend $5,000 on purchases in the first 3 months your account is open.
  • Second Bonus: Earn 9,000 bonus points after your Cardmember anniversary.
  • 3x Rewards: 3 points per $1 spent on Southwest Airlines® purchases.
  • 2x Rewards: 2 points per $1 spent on social media and search engine advertising, Internet, cable and phone services. Perfect for online entrepreneurs.
  • 1x Rewards: 1 point per $1 spent on all other purchases.
  • 4 Upgraded Boardings per year when available
  • Inflight WiFi Credits
  • Global Entry or TSA Pre?® Fee Credit
  • Employee cards at no additional cost, earn points on employee spending.
  • $199 Annual Fee

Delta Airlines Business Credit Cards

Delta offers three business credit cards:

As is standard, the cards vary in annual fee and rewards–the higher the annual fee, the better the rewards.

Delta SkyMiles Gold Business American Express card

Delta SkyMiles Gold Business American Express card Delta SkyMiles Gold Business American Express card
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  • Welcome Bonus: Earn 40,000 bonus miles after spending $2,000 within your first 3 months.
  • After you spend $10,000 in purchases on your Card in a calendar year, you will earn a $100 Delta Flight Credit to use toward future travel.
  • Rewards: Earn 2 Miles on every dollar spent on eligible purchases made directly with Delta, U.S. purchases for advertising in select media, U.S. shipping purchases, and on dining at restaurants. Earn 1 mile on every eligible dollar spent on purchases.
  • Enjoy Main Cabin 1 Priority Boarding
  • No foreign transaction fees when you spend overseas.
  • $0 introductory annual fee for the first year, then $99.
  • Terms and limitations apply

Delta SkyMiles Platinum Business American Express Card

Delta SkyMiles Platinum Business American Express Card Delta SkyMiles Platinum Business American Express Card
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  • Welcome Offer: Earn 45,000 bonus miles and 5,000 Medallion Qualification Miles after spending $3,000 within your first 3 months.
  • You can also earn a $100 statement credit when you make your first Delta purchase with the card in the first 3 months.
  • Rewards:
    • Earn 3 Miles per dollar spent on purchases made directly with Delta.
    • Earn 1 mile on every eligible dollar spent on purchases.
  • Check your first bag for free.
  • Priority Boarding.
  • Miles don’t expire.
  • Terms and limitations apply
  • $250 annual fee

Delta SkyMiles Reserve Business American Express Card

The Delta SkyMiles Reserve Business American Express Card offers one of the best ways to earn bonus Delta SkyMiles. If your business is a frequent Delta flyer, this card is a must.

Delta SkyMiles Reserve Business American Express Card Delta SkyMiles Reserve Business American Express Card
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  • Earn 45,000 bonus miles and 10,000 Medallion(R) Qualification Miles (MQMs) after you spend $4,000 in purchases on your new card in your first 3 months. Earn an additional 20,000 bonus miles after your first anniversary of Card Membership.
  • Earn 15,000 Medallion(R) Qualification Miles (MQMs) after you reach $30,000 in eligible purchases on your card in the calendar year, up to 4 times a year.
  • Earn 3 Miles per dollar spent on eligible purchases made directly with Delta.
  • Earn 1 mile on every eligible dollar spent on purchases.
  • Pay no foreign transaction fees when you spend overseas.
  • Complimentary Delta Sky Club(R) Access.
  • Terms and limitations apply

United Airlines Business Credit Cards

United Business Card

The United Business Card offers United frequent flyers an excellent signup bonus, travel credits and up to 2 miles per $1 spent on the card.

United Business Card United Business Card
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  • Earn 60,000 bonus miles after spending $3,000 in the first 3 months.
  • Earn 2 miles per $1 spent on local transit and commuting.
  • Earn a $100 United travel credit after 7 flight purchases of $100 or more each anniversary year.
  • 5,000 mile loyalty anniversary bonus when you have two United credit cards–the United Business Card and a personal Chase United credit card
  • Earn 2 miles per $1 spent on United purchases, at gas stations, restaurants and office supply stores.
  • Earn 1 mile per $1 spent on all other purchases.
  • No foreign transaction fees
  • Free checked bag, 2 United Club? one-time passes and 25% back on United inflight purchases
  • Priority boarding for you and companions on the same reservation on United-operated flights
  • $0 intro annual fee the first year, then it’s $99 per year.

Choosing the Best Card for Your Business

These are just the top business credit cards of 2021 as we see them. We’ve vetted most of the major players available right now, and these cards offer plenty of variety for different types of businesses. However, choosing between them can be difficult.

When you’re looking at this – or any – list of business credit card options, it’s important to consider your business’s actual spending and expected spending for the coming year. If you don’t spend enough to justify a high annual fee, cross those cards off the list. Also, if you’re looking to finance a big-ticket purchase, check out the cards with the 0% introductory APR option.

Each of these cards has unique perks and benefits. The key is to ensure that those benefits line up with your current and future business spending.

Business Credit Card FAQs

When it comes to business credit cards, you might have a few questions. Here are five that we get most frequently:

Does a business credit card offer federal consumer protections?

The short answer here is no. Business credit cards aren’t protected by federal laws like the Credit CARD Act of 2009, most of the time. This means that your APR can change without notice, and there are fewer limits on fees you can be charged. Fraud protection is also not as strong with business credit cards.

With that said, credit card companies want your business, so many have individual protections written into their business credit card contracts. It’s up to you to be informed about potential fees, fraud protection, and other issues with your business card. Look closely at the fine print before you sign up for a card, as protections vary from company to company.

What’s the difference between a business charge card and a business credit card?

There are two major differences between credit cards and charge cards. Charge cards, unlike credit cards, don’t have a credit limit. However, they also have to be paid in full at the end of the month, or you’ll incur a large penalty fee. With a charge card, you have to plan spending more carefully, and keep closer track of your cash flow.

Charge cards do offer some of the same cash back and travel benefits as credit cards, though many come with annual fees.

Paying off all of your credit card balances each monthis a good habit for any business owner. But the inability to carry balances over from month to month at all can be prohibitive for some. If you ever suffer a tight month and can’t pay your balance in full, you’ll already have been hit with penalty fees, even if you catch up the next month.

For many business owners, it’s better to use a credit card.

Is a business EIN required to apply for a business card?

You can use your federal EIN – employer identification number – to apply for a business credit card, but you don’t have to. Many solopreneurs never get an EIN simply because they don’t need it. If you’re on your own and use your own social security number for other aspects of your business, you can just use that when applying for a business credit card.

Even if you do have an EIN, you may not be able to use it when first applying for a business card. The credit card company can only pull your business’s credit if your business has its own credit file as an entity separate from your personal credit file. If you’re just getting started, you’ll need time to build up your business’s credit file, which is part of the point of using a business credit card.

If you have an EIN but don’t have a credit file associated with it, the credit issuer will simply pull credit based on your social security number.

Will they check my personal credit file when I apply?

The answer to the above FAQ should tell you this! The answer is yes, most of the time. This is especially true at first, when your business doesn’t have its own credit file, or doesn’t have a large enough history for a credit issuer to make a decision. Again, you can enter your EIN instead of your personal social security number. But if the business doesn’t have an adequate credit file for a decision to be made, you’ll see a hard inquiry on your personal credit file.

With that said, other business card owners have noticed that after the original inquiry, the business credit card may not be counted in your personal credit file, unless there’s a major negative to report. Once the account is up and running, most of the credit-building properties will be counted towards your business’s credit, rather than your personal credit.

With all this in mind, it’s important to take care in your business transactions, just as you would your personal interactions. Though you and your business are technically separate, there’s so much interlinking in the world of financial transactions that credit issues in either sphere can impact the other.

What’s my personal liability for the card’s balance?

Depending on the credit card issuer and the arrangement you sign, you may be 100% liable for the credit card’s balance. Most of the time, a credit card issuer will insist that you sign a personal guarantee. This is an agreement you make with your creditor to pay for your business’s debts if your company doesn’t. It’s almost like cosigning for yourself. If your business can’t keep up with the debts, you’ll have to pay them back personally – even if you are the sole owner and operator of the entire business.

Due to personal guarantees, creditors could go after your personal assets if you default on the loan. Even if your company is an S-corporation or Limited Liability Company, you could be on the hook personally for business credit card debts. Limited liability company and corporation classifications shield your personal assets from certain liability situations. But when you willingly enter into a credit card arrangement and willingly make spending choices, you’re still personally liable for the debt.

If you get to the point where your business is more established and has deep pockets and a long credit history, you may be able to get business loans and credit cards with commercial liability. Then, the creditor couldn’t pursue your personal assets in case of failure to pay. However, most small businesses don’t have this option, and especially not when they’re just beginning to apply for business credit.

Managing Business Expenses with a Credit Card

Managing business expenses with a credit card is similar to managing personal expenses using a credit card. But there are a few additional rules. Here are my personal rules for using a business credit card, which are easy to apply to any business model:

Rule 1: Pay the balance in full each month

To get the most out of your business credit card and keep your expenses in check, pay off the full balance of your business credit card each month. This means keeping careful track of your expenses and your cash flow to ensure you’re not overspending.

One potential exception to this rule is to use a 0% introductory APR deal to make a large purchase for your business. Only do this if it’s necessary, and if taking the time to save up for the one-off purchase would cost your business more in the long run. Then, budget carefully to ensure you can pay off the balance in full before your APR goes up.

One of the key reasons I use a business credit card is to make tracking business expenses easier. Yes, you can do this by just looking over your credit card statements monthly. But you can also automate the process by simply linking your credit card to your favorite accounting software.

I link my business credit card to Quickbooks Online. It automatically downloads the transactions as they occur. My bookkeeper then categorizes the transactions at the end of the month.

Rule 3: Use the card only for business expenses

This is an essential rule: don’t ever use this credit card for personal expenses. This will only get you into trouble, especially if this turns into a habit. It’s much easier to keep your expenses separate and easy-to-track by using your business card only ever for business expenses.

Rule 4: Keep your receipts

Even if you have your credit card log, keeping your receipts is essential. The IRS says to keep business receipts for purchases and expenses for at least four years. Keep a file – both digital and hard copy – to keep your receipts organized by date. And if some of your receipts are for expenses that could potentially be questioned, like restaurant expenses, jot down a note on the receipt or in its digital file about the business occasion that led to the expense.

Basics of Business Credit Card Rewards

As you can see from our list of the best business cards above, many come with a variety of rewards. The most popular options, however, are cash back and miles rewards. You can also get purchase rewards, too, though, which give you access to gift cards and other useful items. Understanding rewards and how to use them is a key piece of choosing the best credit card for your business.

Rewards

One mistake business owners often make is choosing a business card that has a great rewards system, but they’re awarded in a way that they won’t use. So as you consider different credit card options for your business, take the time to understand how rewards are earned, and think through how you’d redeem those rewards.

We’ll discuss the most common options, and the best ways to use those rewards:

  • Travel Rewards: Travel rewards come in various flavors. Some travel cards let you rack up points to use for any travel-related purchase–from hotel stays to airline tickets to rental cars. Others only allow you to redeem points with certain providers. If you travel often for business and don’t mind always booking with the same airline or hotel chain, a brand-specific card might work for you. But if you’d rather get the best possible deal on flights and hotels, look for a card with more flexible redemption policies.
  • Purchase Rewards: Some business rewards cards offer purchase rewards options. For instance, with the Chase cards listed above, you can choose to redeem your rewards in several ways. For instance, you can purchase gift cards to various retailers, shop on Amazon.com directly with your points, or redeem rewards for special experiences. Purchase rewards can be more limited, but can be a way to buy customer and employee appreciation gifts. You can also order necessary office supplies using gift cards or Amazon.com points.
  • Cash Back Rewards: Cash back rewards are perhaps the easiest to use. This is my approach. Most major credit card companies will allow you to put cash back rewards directly towards your credit card balance. Most card companies will transfer cash back rewards transferred directly to your bank account.
  • Sign-Up Bonuses: When considering signing up for a new credit card, be sure you check out the sign-up bonuses. These bonuses give you extra spending power or even airline tickets right after you sign up for the new card. While you don’t want to choose a credit card based solely on a one-time bonus, it’s certainly something to take into consideration when choosing a credit card.

Interest Rates

You should consider a business credit card’s interest rate if you carry a balance. Should you need to carry a balance, the lower your interest rate, the better off you’ll be. When choosing a credit card for your business, here are three types of interest rates to consider:

  • 0% Balance Transfers: Are you already trying to pay down some business debt you’ve let pile up? Look for a card with a 0% introductory interest rate on balance transfers. This is a way to save money while you pay down the debt as quickly as you can. Just be sure you don’t use a balance transfer offer to put personal debt onto your business credit card. To pay off personal debt more quickly, check out this list of 0% APR balance transfer credit cards.
  • 0% on Purchases: Again, we don’t recommend regularly carrying a balance on your business credit card. However, if you need to make a one-time purchase of a big-ticket item, a 0% introductory APR may be the way to go. As long as you can pay down the balance before the 0% APR runs out, you can pay no interest on your large purchase. Just be sure you read the card’s fine print. Many will end the deal and hike up your interest rate if you’re even a day late on a single payment.
  • Regular APR: You’ll find a credit card’s regular APR in the fine print. These APRs are often listed as variable. The better your credit score, the lower your APR will be. If you don’t ever carry a balance, the regular APR won’t matter much in your budget. But it’s still important to know your APR before signing up for a credit card.

How to Apply for a Small Business Credit Card

Applying for a business credit card is similar to applying for a personal credit card, with a few differences. Here’s how to get started:

  • Decide whether to apply for an EIN. If you don’t already have an employer identification number (EIN), consider whether you should apply for one. It’s free to do, and is fairly simple to do online at the IRS website. If at any point you’re likely to hire employees, go ahead and apply. If you plan to keep your business to just yourself and, perhaps, your spouse, you can apply for business credit under your social security number.
  • Check your business credit file. If your business has been around for a while, it may already have a credit file. You can check on that here. If your business has a credit file, skip to step four. If not, take step three first.
  • Apply for a D-U-N-S number. This is a unique business identification number, separate from your EIN. You can actually apply for this number, and then add or change information in it on the Dun & Bradstreet site, linked above. When you first establish your business credit file, creditors will still pull your personal credit file first to check for creditworthiness.
  • Apply for a small business credit card. Business credit card applications are similar to personal credit card applications. You’ll just need to fill out all the requested information. Even if you provide an EIN, most creditors will ask for your social security number as part of your personal guarantee. Remember, this makes you personally liable for your business’s debts, which gives you even more reason to be cautious with your credit card spending.
  • Build your business’s credit. As when applying for a personal credit card, you may start off with a relatively low credit limit. You can build up your business’s credit by paying bills on time, keeping your credit card balance low, and keeping a long credit history. You can continue to visit the Dun & Bradstreet website to see your progress with your business’s credit.
  • Ask for a credit limit increase, eventually. If you may need to apply for a large business loan in the future, you would do well to continue building your credit by eventually asking for a credit limit increase. Remember, a large portion of your business’s credit rating comes down to debt vs. credit. The more credit you have available, the higher your rating. Once you’ve used a credit card wisely, you can ask for a credit limit increase.