The best business credit cards with no annual fee

Business credit cards with no annual fee are free to open, and the best ones offer extra benefits like a promotional 0% APR period, which can help you save money.

‍Should you get a business credit card with no annual fee?

When deciding on a business credit card with no annual fee, it's important to look beyond the absence of the fee. Here are key factors to consider to help determine if it's the right fit for your business.

Ongoing fees

Although no annual fee cards save you from an annual charge, be aware of other potential fees, such as:

• Foreign transaction fees: Some cards charge a fee (typically 2-3%) on international purchases. If your business operates globally, a card with no foreign transaction fees is essential.
• Late payment fees: Missing a payment can result in late fees and higher interest rates. Ensure you're aware of these costs and the card's penalty APR before applying.
• Balance transfer fees: If you plan to transfer balances from another card, review the card's balance transfer fee, which can be a percentage of the amount transferred.

Even though a card may have no annual fee, these other costs can add up, depending on your business's spending and payment habits.

Rewards

​​When choosing a no annual fee business credit card, it's essential to look closely at the rewards program, as it can significantly impact the card's overall value for your business. Credit card rewards programs vary, and the best choice depends on your spending habits and how you plan to redeem those rewards.

• How you earn: Some cards provide a flat percentage of cashback or points on all purchases, while others offer higher rewards in specific categories like travel, office supplies, or gas. Choose a card that matches your business's main expenses to maximize your earning potential.
• How you redeem: Flexibility matters when using your rewards. Check if you can redeem points for cashback, statement credits, or travel. Some cards allow transfers to hotel and airline partners, which can add value if your business requires frequent travel.
• Limits on rewards: Some cards impose spending caps in bonus categories. After hitting the limit, you'll typically earn at a lower rate for the remainder of the year. Be aware of these limits to avoid earning less than expected.

Make sure the rewards structure fits your business's spending habits and offers the most value for your typical expenses.

Credit score impact

Most no annual fee business credit cards require good to excellent credit, and applying for a card involves a hard inquiry on your credit report. Consider:

• Minimum credit score: Before applying, check the card's typical credit score requirement to avoid unnecessary inquiries. Most business cards require a score of at least 670 or higher.
• Credit utilization: Keep in mind that using a high percentage of your available credit can hurt your credit score. Consider whether the card's credit limit is high enough for your needs without negatively impacting your credit utilization ratio.
• Personal guarantees: Some cards require a personal guarantee, meaning your personal credit score could be affected if you fail to pay off the card's balance. Look for a business credit card with no personal guarantee if you want to avoid taking on any personal liability

Be sure to assess how applying for and using a business credit card will impact your credit score in the long term.

Introductory offers

Some no annual fee business credit cards offer lucrative introductory offers to attract new cardholders. These can include:

• Sign-up bonuses: Many cards provide bonus points, miles or cashback if you spend a certain amount within the first few months. Compare bonuses and their redemption options, but also consider if your regular spending will reach the required threshold.
• 0% APR periods: Business credit cards with 0% APR allow you to avoid paying interest on purchases or balance transfers for a limited time. If you need to make a large purchase or consolidate debt, this feature can save your business money in the short term.

While these introductory offers can provide significant value upfront, they are temporary. Make sure the card's long-term benefits meet your ongoing business needs.

Benefits of a business credit card with no annual fee

Businesses of all sizes can enjoy several benefits from business credit cards without an annual fee. For one, it's often easier for new businesses to qualify for these cards. Many of them are made for companies with recently established credit, so you won't need an excellent credit history to apply.

Since the card doesn't cost your business anything, getting and keeping a no-annual-fee card open is a great way to build business credit. You won't need to worry about finding ways to offset the cost of the card. Instead of paying to qualify for future savings, you can earn rewards on purchases immediately.