Startup Operation - 5 Best Credit Cards for Startups

The 5 Best Credit Cards for Startups 2022

Founders, are you looking to get a business credit card? Unfortunately, the reality is that the big banks don’t issue credit cards to businesses without personal guarantee. As a new founder, or even a foreign founder, it is almost impossible to get a credit card without giving any kind of guarantee or credit history. Luck for you, that is not the end of the game, we know how to beat it!

Here we will introduce five very different credit cards for you. Depending on your company’s situation and the problem you are trying to solve; you might find one credit card is better than the others. First, let’s clear the house and get some basic questions squared away.

Question 1: If I am applying for a company credit card, do I need to personally guarantee it?

YES! This largely comes down to “Who is ultimately responsible for the debt?” If your startup doesn’t have a credit history that can be used to proof the ability to pay, then you will have to step in, at least, that is the big banks’ mentality. So, the conclusion here is that the big banks usually won’t issue you a credit card without credit or personal guarantee.

Question 2: No credit history, no SSN (social security number), can I still get a credit card?

YES! No problem! The five credit cards we will introduce might be less well-known, but they are, in a way, even better than big bank credit cards. They are also startups, trying to make the impossible possible and help solve a problem for people.

Question 3: I don’t have a US address; will my credit card application get rejected?

Most likely yes, from the big banks! However, have you tried Earth class mail? They will give you a US address for mails, and scan your mails once they come in. What’s even more, they will deposit your checks! Pretty sweet when you don’t have a physical address in the US you can use yet.

Now let’s get started on those five credit cards that we talked about earlier!

Credit card 1: Brex - Best for no personal guarantee

If you don’t want to be held personally responsible for repaying the credit card debt for your company, and also have cash saved in the bank, Brex card is the right card for you. To add a cherry on the top, the Brex Card charges a $0 annual fee. Seems pretty low barrier to entry and affordable right?

Credit card 2: Amazon Credit Builder - Best for building credit history from 0

The Amazon Credit Builder card is a secured credit card for people who want to build or rebuild their credit. We all know how important it is to have a credit history in the U.S! Car loan, mortgage, credit cards, you name it! Amazon credit builder card can do exactly that, and can help you build your credit.

CFO tip: Amazon will ask you to apply for the store card first; if you are not qualified for the store card, then they will let you apply for the amazon credit builder. Once approved for the Amazon Credit Builder, you are required to make a refundable security deposit as collateral to open your credit card account.

Credit card 3: Privacy Card – Best for employee reimbursements

For founders who are looking to issue credit cards to employees, the Privacy card is a convenient online card that will let you set limits on how much can be spent on each card for your employees.

CFO tip: If you have remote employees who need access to company credit cards, the Privacy card is a great card for that purpose. It makes the reimbursement process much easier!

Credit card 4: Credit Stacks - Best for relocating to U.S with a job offer

If you already have a job offer prior to arriving to the U.S, even as a foreign national you are eligible to apply for the Credit Stacks Card. You can apply for this card before you get to the U.S. Do not worry about having a SSN or credit history, they do not require it, that’s pretty amazing, right?

Credit card 5: Petal – Best for getting cashback right away

As a savvy investor/money manager, you want to grow your wealth, preferably quickly! We get it! This Petal card gives you 1% cashback immediately and it goes up to 1.5% over time. They do check credit history, but the application has been said to be easier to get approved.

Conclusion:

In the information asymmetry world, we want convenience to solutions. We hope our hard work on researching and testing the credit cards for startups can yield to some convenience for you and provide you with a solution to make your day better!