Credit Cards for Businesses | An Expert Guide
A small business credit card can be a good choice if you're looking to finance your business using revolving credit. Unlike traditional lines of credit, these cards give you the flexibility on monthly payments (minimum payments vs full balance vs something else). Some of these cards may also provide cash-back rewards on typical office purchases. Click on the images below to get specific advice on business credit cards from our experts.
Browse ALL Expert Guides
What To Look For When Applying
Business credit cards exist so that cardholders can separate their business and personal expenses as well to offer additional features useful to business owners. For example, business credit cards may offer authorized credit cards for employees at no additional charge. These cards can include features such as alerts and spending limits to help business card owners keep track of employee use. In addition, business credit cards can offer other benefits for business owners such as airport lounge access and increased limits or purchase protection policies. Finally, if you are a business cardholder who pays your statement balances in full each month, then you should consider a card that will help you earn some rewards for your spending such as airline miles, hotel points or cash-back bonuses.
What To Avoid When Applying
As a business credit card user, you should avoid paying for more credit card features and benefits than you will actually need. There are many business cards with annual fees of around $100, but most of these cards are designed to provide travel benefits to cardholders. Alternatively, there are business cards with little or no annual fee that are more ideally suited to business card users who don't travel often. In addition, many of these travel rewards business credit cards have higher interest rates than similar cards that do not offer rewards. Finally, if you are a business cardholder who is also a sole proprietor, then you should realize that each statement balance will be reported as personal debt to the major consumer credit bureaus, which is not the case for businesses that have been incorporated. Your credit card balances, even if paid in full every month, can affect your personal credit scores, so keep that in mind before opening a business credit card in your name if you're a sole proprietor.
Should You Apply For More Than One?
There are some reasons why business owners may want more than one credit card, just like personal credit card users. For example, you may want to use different credit cards that offer different rewards and benefits such as airline and hotel rewards credit cards. In addition, some business credit cards will offer lower interest rates and promotional offers that can be more suited to times when companies need to carry a balance.
When Is The Best Time To Apply?
Business credit cards can allow you to separate your business and personal expenses while offering additional features needed most by business owners. A business credit card is still opened using the credit profile of the primary account holder, so you should apply for a business card with the same considerations you might use when applying for a personal credit card. For example, business owners should not apply for several cards all at once, or apply for a card right before you know you'll be applying for a larger loan like a mortgage. Finally, those incorporating a small business should wait until they have received an employee identification number from the IRS, while those operating as sole proprietors can use their Social Security numbers.
There are no cards that match your search
Please revise your search criteria above and try again or
view your last search results below
Our credit experts would love to know what you think. Just remember to keep it clean, civil, honest, and avoid posting sensitive, private information. These responses are not provided or commissioned by the bank advertiser.
It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. Please note that any Credit.com comments below are, of course, completely independent (not reviewed or endorsed by people representing financial institutions).
Okay, fire away!
*For complete information,
see the terms and conditions on the credit card issuer’s
website. Once you click apply for this card, you will be directed to
the issuer’s website where you may review the terms and
conditions of the card before applying. While Credit.com always
strives to present the most accurate information, we show a summary
to help you choose a product, not the full legal terms - and before
applying you should understand the full terms of products as stated
by the issuer itself.
†Advertiser Disclosure: The credit card
offers that appear on the website are from credit card companies
which Credit.com receives compensation. This compensation may impact
how and where products appear on this site (including, for example,
the order in which they appear). The site does not include all
credit card companies or all available credit card offers.