Topics Covered in this Article:
Unfortunately, there are some downsides to credit cards, such as annual fees, which are generally around $100. However, in some cases, annual fees can reach $500 or more. On top of that, you must pay interest, and potentially other fees, such as late payment penalties, foreign transaction fees, and transfer charges.
Annual fees can be especially annoying, and most business owners dread having to pay them. You already have a myriad of other costs, so adding in annual credit card fees can be frustrating.
Fortunately, there are a variety of credit cards that have no annual fees. In some cases, however, credit cards with no annual fees will have higher fees elsewhere. Make sure you keep that in mind, and consider all associated costs that come with each credit card.
In this post, we’ll examine five of the best credit cards that don’t have annual fees. If you’re looking for a great credit card without annual fees for your small business, these should be on your list!
Bank of America Travel Rewards Card
The Bank of America Travel Rewards Card features a variety of benefits and is an especially great choice for entrepreneurs who travel frequently.
Key Considerations
- Interest rates between 15.99 percent and 23.99 percent.
- Penalty APR of up to 29.99 percent.
- Balance transfer fee of up to 3 percent or $10 (whichever is greater).
- 5 bonus points for every dollar spent.
Other benefits
Bonus points accrue quickly and can be used to purchase airplane tickets, hotels, luggage, and other travel-related expenses. Given how common these expenses can be for business owners that travel frequently, these points can be very useful. To qualify for the Bank of America Travel Rewards Card, you will generally have to have good to excellent credit.
Discover it Card
The Discover it Card features low variable interest rates and a variety of benefits, such as free SSN monitoring. As with any variable rate interest card, it is important to keep an eye on interest rates and the indices they are tied to.
Key Considerations
- Variable Interest rate of 11.99 percent to 23.99 percent.
- Intro purchase APR of 0 percent for six months.
- Intro transfer APR of 0 percent for 18 months.
- No foreign transaction fees.
- Late payments will not raise APR.
Other benefits
The Discover it card features 5 percent cashback on rotating purchasing categories. For example, one month it might be gasoline, another month it could be Amazon purchases. Given the wide variety of purchases that small business owners make, you’ll be able to take advantage of these cashback opportunities frequently.
Chase Ink Business Cash Card
The Chase Ink Business Cash Card is only available to individuals with excellent credit. However, for those who qualify, this no annual fee credit card is an excellent option.
Key Considerations
- No penalty APR.
- Regular APR at 14.24 percent to 20.24 percent (variable).
- 5 percent cashback for various business expenses (i.e. office supplies) of $25,000 or greater.
- 2 percent cashback on purchases at gas stations and restaurants.
- Employee cards at no additional costs.
Other benefits
You must spend quite a bit to qualify for cashback rewards. However, for businesses that will be spending large sums on qualifying purchases, the cashback rewards are fantastic. Also, the Chase Ink Business Cash Card comes with extended warranty protection that will provide 1-year extended protection for certain purchases.
Hilton Honors Card from American Express
American Express cards often carry some of the higher annual fees, but is also known for providing excellent benefits. The Hilton Honors Card features many of the best American Express benefits, and doesn’t have an annual fee.
Key Considerations
- Reasonable APR rates between 16.24 percent – 20.24 percent.
- Penalty APR rate of 29.99 percent.
- Foreign Transaction Fee of 2.7 percent.
- Earn 50,000 Hilton Honors Points by spending $1,000 in your first three months.
- Earns 5X Hilton Honors points for purchases at eligible establishments, including gas stations and restaurants.
Other benefits
Many small business owners travel for work. Whether you’re meeting with clients, attending conferences, or pursuing new opportunities, hotel points can come in handy. This makes the Hilton Honors Card a great choice for frequent jet-setters!
Discover it Secured Credit Card
Our final suggestion is a secured credit card, which means that monthly payments must be secured with cash as collateral. Secured credit cards are excellent for business owners with poor credit scores. Many secured credit cards feature annual fees, luckily the Discover it Secured Credit Card doesn’t!
Key Considerations
- No penalty APR.
- 49 percent APR.
- 5 percent cash advance fee.
- No foreign transaction fees.
Other benefits
The Discover it Secured Credit Card is designed for business owners looking to rebuild their credit. This credit card features numerous benefits, including free credit score reports and social security number monitoring, which are especially useful for business owners with poor credit scores.
A Final Tip: Read the Fine Print
When considering business credit cards, make sure you read the fine print. Sometimes, credit card providers will use benefits like no annual fees to attract customers, while increasing costs elsewhere. As a result, you may end up paying more in the long run. Keep that in mind when comparing business credit cards!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
