Business credit cards are uniquely different from other cards. But they are meant for people who have businesses. Business credit cards in Canada are cool but the top business credit cards in Canada provide enticing introductory bonuses and first-rate perks. This article explains how you as a Canadian can access a business credit card even without owning a business.
The possibility of obtaining a business card of your choice in Canada is endless. But it relies on your willingness to comply with the credit card company. Your business information will be requested on the application when you apply for a business credit card. One of the secrets this article will unveil is that you can enter anything you want and still get approved for a company credit card.
One way or the other, we all have businesses. You have a business if your side gig is delivering meals or driving for ridesharing services. Many individuals are unaware of the fact that it is not strictly necessary to register your business to operate one. This article gives that awareness.
What Is A Business Credit Card?
A Business credit card is a card created especially for company owners that provides certain advantages tailored to enterprises. Business cards frequently include larger credit limits, more lucrative rewards programs, and features to help you control spending.
Business credit cards also frequently have a large credit limit and a higher earn rate. It is suitable for individuals who spend a lot. Given that you will accrue more points when you spend large, you may find business cards to be highly enticing.
Some of the benefits of business credit cards are:
- More alternatives for payment
- Increased budgetary allowance
- Higher earn rates
- Defending against employee abuse
- Tools for managing expenses and businesses
Having access to one of the top business credit cards in Canada may help you enhance your day-to-day operations whether you own a small or large business, have employees, or work as a freelancer/from home.
With a business credit card, you can be confident that you’ll have the money you need to run and expand your company. It will ease the financial pressure and brings assurance to your day-to-day operations. In contrast, corporate credit cards are simply another way for you to accrue additional points.
Requirements For A Business Credit Card
Some of the requirements of business credit cards are:
- Details about your company. Whether it is a side business, small-scale, or large-scale business; the details of your business are needed to obtain a credit card.
- The name and address of your firm. However, it’s not unusual to use your name, a made-up business name, and your home address as your business information because anybody may run a business, and side jobs are seen as businesses.
- A query about business income. Your chances of approval increase as your salary does. Despite this, many people obtain a company credit card when they first launch their venture and have no income. They could substitute their anticipated income because that doesn’t always appear good.
- Your credit score. Since your credit score is a more precise indicator of your creditworthiness, I suppose many credit card issuers are more interested in it throughout the approval process.
Even if business income is important, you also need to consider how credit card companies function. For any of its credit cards, American Express, for instance, does not formally impose income criteria. It’s fair to suppose that they presumably utilize their company credit cards under similar circumstances.
In addition to the outlined requirements above, credit card companies are free to review each application. Although you might get a credit card immediately away, credit card companies might subsequently examine your account. They can observe your spending habits and formal examination might be placed when unnecessary purchases are noticed.
Additionally, some business credit cards in Canada can demand you to visit a branch and present documentation of your company’s existence before they’ll accept you.
Credit card companies can request proof of your salary. However, you have nothing to worry about because they only truly care about the money entering your bank account. You can merely display your personal bank account instead of having a separate company bank account. All transactions happening in your bank account can serve as your income source.
Best Business Credit Cards In Canada
Business credit cards in Canada should include a rewards program that’ll help you save back on company expenditures. In fact, some of the best business credit cards in Canada provide enticing cash-back points or travel incentives. Your application procedure will often be directly impacted by your credit score.
In general, you’ll probably be accepted if you have a decent credit score. However, you better take the necessary measures to demonstrate that you have everything set up properly in case you are subsequently required to prove your business.
You can consider one of the following business credit cards:
- American express business platinum card
- Marriott bonvoy business American express card
American Express Business Platinum Card Explained
Regular business travelers with sizable budgets who can afford the Business Platinum Card® from American Express will find it useful. The $695 annual fee is certainly not much of a deterrent to acquiring this card if you can afford to spend the requisite $15,000 within three months to get its big one-time incentive and to pay the debt off quickly, which is most likely essential.
It also works well for company owners who like to pay their bills in full each month to avoid incurring interest fees. Enrolling in the Pay Over Time feature and deferring some purchases are options, but they may not be accessible to you right away and may not fully cover your expenses.
Possibly the most widely used business credit card in Canada is the American Express Business Platinum Card. Although there is a $499 annual charge, the welcome bonus is often rather sizable and ranges from 70,000 to 100,000 American Express Membership Rewards points. This card offers a lot of value in addition to unlimited lounge access for two people and hotel status upgrades.
Since you can transfer those points to Marriott Bonvoy and Aeroplan, they are significant. For those who wish to accumulate plenty of travel points, this is crucial. For instance, you could easily have more than 200,000 Aeroplan points if you applied for the American Express Business Platinum Card and one of the finest Aeroplan credit cards.
The summary of the features of this card are:
- You pay a $499 annual fee
- You can earn 120,000 Membership Rewards points by spending $10,000 in the first 3 months and you must use a referral link.
- You can earn 1.25 points per $1 spent on all purchases.
- You have unlimited access to an airport lounge.
- You are also entitled to a Marriott Bonvoy Gold Elite status
Marriott Bonvoy Business American Express Card Explained
You may earn additional points on regular and work-related purchases with the Marriott Bonvoy Business Amex, a stacking card with a rewards rate. Every year, you’ll accrue 15 elite night credits and be given automatic Gold elite status. Last but not least, the free night award certificate with a redemption threshold of 35,000 points or fewer might potentially be worth several hundred dollars annually.
One of the top hotel cards for business owners is the Marriott Bonvoy Business card. Guarantee that Marriott is the biggest hotel chain in the world, it is almost a given that you will stay at a qualifying location whether you are traveling for work locally or abroad.
People who wish to accumulate points that can be redeemed at hotel chains will be drawn to the Marriott Bonvoy Business American Express Card. You shouldn’t have any trouble using your points because Marriott has more than 7,000 hotels spread over more than 120 countries. In terms of points, the standard welcome bonus ranges from 50,000 to 70,000 Marriott Bonvoy points. You also receive an annual ticket for a free stay worth up to 35,000 Marriott Bonvoy points. Considering a credit card with a $150 annual fee, it is a fantastic offer.
Use the improved earning rate of 5 points for every $1 spent if you often stay at Marriott locations. For every $1 spent on petrol, transportation, and food, you get 3 Marriott Bonvoy points.
Summary of the features of this card are:
- You pay a $150 annual fee
- You can obtain 70,000 Marriott Bonvoy points + $100 statement credit by charging $3,000 in the first 3 months
- You can earn 5 Marriott Bonvoy points for each $1 spent at participating Marriott properties
- You can earn 3 Marriott Bonvoy points per $1 spent on gas, dining, and travel
- You can earn 2 Marriott Bonvoy points per $1 spent on all other purchases
Business credit cards avail users with better credit facilities that are more sufficient than conventional credit cards. Those living in Canada are fortunate enough to have some business credit card firms that give credit cards even though you don’t own a business.
Reading through this article, you must have gotten invaluable knowledge on key business credit cards that are obtainable in Canada. Visit the website of the cards explained in this article to enjoy these credit facilities.
Please let me know your thoughts and comments below.
Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.