No matter the scale of your freelance business, having a reliable business credit card can be a game-changer. These cards not only help in managing expenses but also allow you to earn valuable rewards. However, choosing the right business credit card depends largely on your specific needs and spending habits as a freelancer.
What works best for a freelancer may differ significantly from what benefits a retail business owner. For instance, while freelancers might prioritize a card with no annual fee and consistent rewards across categories, a retail store owner might need a card that offers higher rewards on inventory purchases.
Evaluating Freelancers’ Credit Card Priorities
When selecting a credit card, freelancers should carefully evaluate their spending patterns and business goals. For example, during my time as a freelance graphic designer, I had relatively modest and varied expenses. For someone like me, a flat-rate card with no annual fee would have been the most practical choice.
On the other hand, if you frequently spend in specific categories, such as office supplies or communication services, a card offering higher rewards in those areas might be more advantageous. With that in mind, here are some of the best credit cards for freelancers looking to optimize their business expenditures:
Top Credit Cards for Freelancers
- The Blue Business® Plus Credit Card from American Express
- Annual Fee: $0
- Welcome Offer: 15,000 points after spending $3,000 in the first three months
- Rewards:
- 2 points per dollar on the first $50,000 spent annually
- 1 point per dollar on all other purchases
- Why It’s Great for Freelancers: Ideal for those with lower annual spending who want to earn Membership Rewards points without an annual fee. The card also offers access to Amex Membership Rewards transfer partners.
- Bank of America® Business Advantage Customized Cash Rewards Mastercard®
- Annual Fee: $0
- Welcome Offer: $300 statement credit after spending $3,000 in the first 90 days
- Rewards:
- 3% in a chosen category (six options, $50,000 cap on rewards spending)
- 2% on dining
- 1% on all other purchases
- Why It’s Great for Freelancers: The flexibility to choose a rewards category each month is perfect for freelancers with variable expenses.
- Capital One Spark Miles for Business
- Annual Fee: $95, waived the first year
- Welcome Offer: 50,000 miles after spending $4,500 in the first three months
- Rewards:
- 5 miles per dollar on hotels and rental cars booked through Capital One Travel
- 2 miles per dollar on all other purchases
- Why It’s Great for Freelancers: Combines the benefits of a travel rewards card with flat-rate cash-back benefits, making it versatile and rewarding for frequent travelers.
- Ink Business Cash® Credit Card
- Annual Fee: $0
- Welcome Offer: Earn up to $750 after spending $6,000 in the first six months
- Rewards:
- 5% on office supplies and communication services ($25,000 cap)
- 2% on gas stations and restaurants ($25,000 cap)
- 1% on all other purchases
- Why It’s Great for Freelancers: Great for those who spend heavily on office supplies and internet services. Also allows points to be combined with other Chase Ultimate Rewards cards.
- Ink Business Preferred® Credit Card
- Annual Fee: $95
- Welcome Offer: 120,000 bonus points after spending $8,000 in the first three months
- Rewards:
- 3 points per dollar on travel, shipping, internet, and social media advertising ($150,000 cap)
- 1 point per dollar on all other purchases
- Why It’s Great for Freelancers: Excellent for those who spend significantly on travel or advertising, with points redeemable for high value through Chase Ultimate Rewards.
- Ink Business Unlimited® Credit Card
- Annual Fee: $0
- Welcome Offer: $750 bonus cash back after spending $6,000 in the first three months
- Rewards:
- Unlimited 1.5% cash back on all purchases
- Why It’s Great for Freelancers: Simple and straightforward, this card is perfect for freelancers seeking consistent rewards on every purchase with no annual fee.
- The American Express Blue Business Cash™ Card
- Annual Fee: $0
- Welcome Offer: $250 statement credit after spending $3,000 in the first three months
- Rewards:
- 2% cash back on eligible purchases up to $50,000 annually
- 1% cash back thereafter
- Why It’s Great for Freelancers: Ideal for freelancers who want a simple cash-back structure without the hassle of category tracking or an annual fee.
- The Business Platinum Card® from American Express
- Annual Fee: $695
- Welcome Offer: 150,000 points after spending $20,000 in the first three months
- Rewards:
- 5 points per dollar on airfare and prepaid hotels through AmexTravel.com
- 1.5 points per dollar on eligible business purchases ($5,000 or more, up to $2 million annually)
- Why It’s Great for Freelancers: Best suited for freelancers who travel frequently and make large purchases, offering extensive travel perks and a robust rewards program.
Why Freelancers Should Use Business Credit Cards
Using a business credit card as a freelancer helps streamline your finances by separating personal and business expenses, which is crucial for tax season. Many freelance-related expenses are tax-deductible, and using a dedicated business credit card ensures accurate tracking and documentation.
Contrary to common belief, you don’t need a physical storefront or a formal business to apply for a business credit card. Freelancers can often use their Social Security number or apply for an Employee Identification Number (EIN) through the IRS to qualify.
Final Thoughts
Choosing the right credit card as a freelancer depends on your spending habits, business goals, and the specific benefits you seek. Whether you’re looking for a flat-rate card with no annual fee or a card that offers high rewards in specific categories, there’s a perfect card out there for you. Take the time to review your spending patterns and choose the card that aligns best with your business needs.
