The Best Business Credit Cards

There’s no single business card that’s best for everyone. To help you choose, we’ve rounded up some of cards from our credit card partners above where you can find the best business credit cards.

Qualifications for a Business Credit Card

You don’t need to be a multimillion dollar entity to qualify for some of the best business credit card around. There are a myriad of options for organizations all the way from sole proprietors (aka you’re a one-person operation) to businesses with multiple employees. Here is what you need:

  • A businessAccording to the IRS, you don’t necessarily have to a registered business entity such as an LLC or corporation to count as one. There are different types of businesses, such as sole proprietorships and single member LLCs. So, if you sell items on eBay or Etsy, or work as a freelance writer, you may be able to qualify for a business credit card.
  • Federal tax ID, EIN or SSN: The myth is that you need to have a federal tax ID (or EIN) to be able to apply for a business credit card. For some issuers or credit cards, you may be able to use your Social Security number instead if you put down that you’re a sole proprietor.
  • (Optional) Proof of Business Income: You may not have access to higher credit lines unless you’ve been in business for a while and can prove you have a certain amount of income, but you can increase that over time.

Pros & Cons of Business Credit Cards

Pros

  • Organize Business Expenses: You’ll separate your business & personal expenses and streamline employee expenses. Many business credit cards offer year-end summaries, and you can download statements and purchase records for accounting programs.
  • You may get higher limits: Free up some cash flow and increase your working capital. If you’re in the growth stages, having access to capital can give you the ability to fulfill business orders, especially if you qualify for a 0% APR offer.
  • Earn Points for Business Expenses: These cards tend to offer point-earning bonuses in categories more suited for businesses, such as internet charges, office supplies, advertising and, of course, travel.You can also earn points on employee expenses with authorized users.
  • Tax benefits: Certain expenses on a business credit card can be tax deductible. Qualifying business expenses can be deducted. This includes any annual fees, interest and any late fees. To find out for certain, it’s best to consult a tax professional.

Cons

  • Less Protection: Small business credit cards don’t come with as many protections compared to personal credit cards. They’re unfortunately not as heavily monitored and regulated compared to consumer ones. This means business credit cards don’t fall under the Credit CARD Act of 2009. So things like your APR can change at any time and you lose protection against high transaction fees. However, some major credit card issuers are choosing to voluntarily adhere to the CARD act in order to provide business owners more transparency in their policies.
  • The Business Owner is on the Hook: The business owner (the primary cardholder) is on the hook for the repayment of all charges, including ones from employees.

What Are the Benefits of Business Credit Cards?

As a business owner, you no doubt have to juggle many responsibilities, so a business credit card can be a major help.

Here are some of the many benefits of opening one:

  • Fast and convenient capital: Free up some cash flow and increase your working capital by using your credit card to purchase what you need to grow or maintain your business. If you’re in the growth stages, having access to capital can allow you to fulfill business orders, especially if you qualify for a 0% APR offer.
  • Separation of business and personal assets: Using a dedicated business credit card can help make it easier to separate business and personal finances. Not only will it be easier when it comes time to do your taxes, but it can also protect your personal finances from any legal trouble that can arise with your business.
  • Tax benefits: Certain expenses on a business credit card can be tax deductible. First, all qualifying business expenses can be deducted. This includes any annual fees, interest and any late fees. To find out for certain, it’s best to consult a tax professional.
  • Streamline employee expenses: Instead of reimbursing employees, give them employee credit cards so you can manage expenses much more easily. You can also limit the amount your employees send, giving you more control.
  • Access bookkeeping and accounting tools: Many business credit cards offer year-end summaries and you can download statements and purchase records for accounting programs. This can help you simplify your bookkeeping and track spending much easier.

How Do Business Credit Cards Work?

A business credit card is one that’s specifically used for business purposes instead of personal ones. These types of credit cards work pretty much like personal credit cards — you get access to revolving credit and other perks like rewards and earnings. But there are some differences between the two.

First, some business credit card issuers will report your credit activity to both commercial and consumer credit bureaus. Don’t think that just because it’s a business card you’re off the hook for missed payments — most issuers require that the business owner personally guarantees the debt. In other words, if you’re late or miss a payment, you, the business owner, could be liable.

When it comes to your business credit, it’s very much like your personal credit history except that it’s a credit profile for your business. Having an established score — especially a higher one — might mean your business can qualify for loans with competitive interest rates. It could even mean lower insurance premiums. To check your business credit score, you can sign up for a free service called CreditSignal (offered by Dun & Bradstreet), which provides alerts when your credit report changes.

How to Apply for a Business Credit Card

Before applying for a business credit card, check your credit situation. Then you’ll be able to assess whether you can qualify for certain credit cards. Use free tools to check your personal credit score. Then you can use that to shop around and research your options to see which cards you can be matched with, offering you the highest chances of approval.

Once you’re ready to apply, here are a few tips for the application process:

  • Gather all supporting documents. You wont need many documents, but here are a few common questions asked on business credit card applications: Federal tax ID number, annual business revenue, specific details about business and social security number.
  • Don’t lie: If you don’t have a business, don’t apply for a card. The same goes for lying about other information just to get a larger credit limit or other perks, because issuers may ask for supporting documents to prove you have a business.
  • Understand you’ll need to sign a personal guarantee: Before submitting your application, be aware that the issuer will take your personal credit history into consideration and that you’re on the hook personally for any charges incurred if your business can’t pay for it.
  • Make sure you can meet the spending requirements for a sign-up bonus: Check the fine print to see what you need to do to earn sign-up bonuses or take advantage of other benefits like travel credits.

What Is the Easiest Business Credit Card to Get?

Qualifying for a card will depend on your credit history — both personal and commercial. If you have never applied for a business credit card before, you can qualify for one using your personal credit score. The higher your credit score, the better your chances.

That being said, you can still qualify for a business credit card even with fair credit, but you may be able to get ones that offer benefits such as travel credits and 0% introductory APR offers. You can always build your business credit and consider another credit card down the line, once you’re able to raise your credit score.

For business owners who have bad (or no) credit, there are secured business credit cards. These ones require you to put down a deposit, which serves as your credit line. Some even offer free employee cards. For example, the Wells Fargo Secured Business Credit Card offers a credit line from $500 to $25,000 and offers a decent 1.5% cash back on all qualifying purchases.

Then, monitor your credit carefully and shop around for unsecured credit cards that suit your needs before applying or trying to upgrade to another one. To see what you can qualify for, check online comparison websites or credit card issuers for pre-approved offers.

What Is the Difference Between a Personal and Business Credit Card?

Business credit cards don’t come with as many protections compared to personal credit cards. They’re unfortunately not as heavily monitored and regulated compared to consumer ones. This means business credit cards don’t fall under the Credit CARD Act of 2009. So things like your APR can change at any time and you loose protection against high fees. However, some major credit card issuers are choosing to voluntarily adhere to the CARD act in order to provide business owners more transparency in their policies.

You may also get higher limits with business credit cards considering your expenses can be much higher than the ones you’ll incur in your personal life. Plus, these cards tend to offer bonus earnings in categories more suited for businesses such as internet charges, office supplies, advertising and, of course, travel.

Aside from this, there aren’t any major differences between personal and business cards. Both these types of cards allow authorized users — in the case of business cards, authorized users are considered employee cards. The business owner (the primary cardholder) is on the hook for the repayment of all charges, including ones from employees. If you have a rewards credit card, points earned go to you, even if employees racked them up.

More Credit Card Rewards

Credit cards have a reputation for causing people to go into debt. Yet the idea that opening credit cards is a bad financial choice isn’t fair or accurate. You get to decide how you will use your credit cards, just as you get to decide how you’ll use the money in your bank account.

Our card roundups help people maximize their credit card rewards earnings for planned, everyday spending. Here are a few to get you started:

If you feel confident that you can manage your credit cards responsibly (paying on time and in full every month), your accounts can be an asset instead of a burden. A well-managed credit card may help you to establish better credit scores over time and can help you take advantage of some amazing rewards.

How Do I Decide the Right Business Credit Card for My Small Business?

1. Look at your business credit score:
Find out what your credit score is so that you’re able to see what you might qualify for. It could help narrow down your choices.

2. Figure out your priorities:
For those who are only interested in a payment method for covering business expenses, most cards will do. However, if you’re after interest-free offers or features like receipt-capture capability, then you’ll need to do some digging to find features for your needs.

3. Avoid credit cards that require excellent credit scores:
If you have limited or fair credit history, you most likely won’t qualify for credit cards that typically require excellent credit scores. Save yourself the heartache and find one that gives you better odds. You can always apply for another card down the line.

4. Don’t discount a secured credit card:
In some cases you may not qualify for an unsecured credit card (where you don’t need to put down collateral to access a credit line). Many issuers offer cardholders the opportunity to upgrade to an unsecured card once they meet certain requirements.

What Is the Easiest Small Business Credit Card to Get?

Qualifying for a card will depend on your credit history — both personal and commercial. If you have never applied for a business credit card before, you can qualify for one using your personal credit score. The higher your credit score, the better your chances.That being said, you can still qualify for a business credit card even with fair credit, but you may be able to get ones that offer benefits such as travel credits and 0% introductory APR offers. For business owners who have bad (or no) credit, there are secured business credit cards. These ones require you to put down a deposit, which serves as your credit line. Some even offer free employee cards. For example, the Wells Fargo Secured Business Credit Card offers a credit line from $500 to $25,000 and offers a decent 1.5% cash back on all qualifying purchases.