Best Business Credit Cards

Compare the best business credit cards

No matter which business credit card you pick, it’s important to remember that it will come with all the same responsibilities as any other credit card.

*Rates and card terms are accurate as of publishing and may change.

Best business credit cards buyers guide

Much like a personal credit card, a business credit card is a financial tool that can help a company build a credit profile, organize funds and earn rewards for purchases. Businesses of all sizes can benefit from a business credit card.

How do business credit cards work?

Business credit cards give entrepreneurs access to convenient capital. An employer identification number isn’t required to apply for a business credit card, though having one will make the application process easier.

Business credit cards provide what’s known as a revolving line of credit, which means that your access to funds is renewed every time you pay off the balance. Interest rates on business credit cards are typically a little higher than interest rates on personal credit cards, but it can be worth it for the expense planning tool and rewards programs.

There are three general types of business credit cards:

• Revolving business credit cards: With revolving business credit cards you have the option to pay your balance each month or pay your balances over time with interest. The most common type of business credit card, revolving cards come with a pre-set credit limit based on your personal or business credit and finance history.

• Business charge cards: Business charge cards are similar to revolving business credit cards, except you must pay your balance off each month and there is not a pre-set spending limit. Like revolving business credit cards, business charge cards also earn rewards and bonuses.

• Secured business credit cards: Similar to a secured loan, a secured business credit card requires you put down a deposit or some other collateral, which largely determines your spending limit.

Business credit card benefits

Business credit card benefits include:

• Free accounting features

• Extra cards for employees

• Rewards accumulation

Just like with a personal credit card, you can earn cash back rewards and bonuses when you use the card on purchases that you make all the time. Business credit card issuers often have additional reward programs for business accounts, like rebates and discounts with affiliate partners.

What is a good business credit card?

Any business credit card can help you manage expenses and improve your business’s credit score. When you’re comparing business credit cards against each other, it’s important to pay attention to the annual fee. 

Plenty of business credit cards don’t have an annual fee, but the ones that do usually come with rewards programs and other benefits to make the fee worth it. Often, business credit cards come with generous sign-up bonuses — consider these a perk, but don’t apply for a credit card just for the sign-up bonus.

What distinguishes a lot of these cards from one another is their rewards programs. Which one is best for you will depend on your financial situation and business needs over the short and long term.

Compare business credit cards

How to get a business credit card

Business credit cards are often easier to qualify for than other types of credit cards and business loans. If approved, your business has access to a line of credit for expenses, and you can earn extra rewards on the purchases your business needs to make anyway. Luckily, it’s relatively simple to apply for a business credit card.

1. Determine your eligibility
   You aren’t required to have an LLC or corporation to apply for a business credit card. Even if you’re a freelance or part-time contract worker, you should consider applying for a business credit card. 

2. Check your credit score
   Knowing your credit score will help determine which business credit cards you can qualify for. Most issuers like to see a personal credit score above 640, and you’ll need a personal credit score of around 750 to get the best rates and reward benefits.

3. Compare business credit cards
   Your credit score will help you narrow down your options before you start comparing the fine print. Look at rewards factors and fees to see which one is the best fit for you. For example, some business credit cards earn more rewards on a particular category, like office supplies. If you don’t make many purchases in that category, then you won’t be getting the most out of that card.

4. Fill out the application
   Card issuers must evaluate your personal financial history plus your business’s revenue and monthly expenses. The card issuer will want to understand your business, your role and responsibilities within the company, how long your business has existed, how many employees you have, annual revenue and estimated monthly expenses.

5. Sign a personal guarantee
   It’s possible to get a credit card for a new business without having built up any business credit. Most new business owners will have to sign a personal guarantee to get approved for commercial credit. A personal guarantee is a legally binding contract stating you will be personally responsible for repaying debts if your business is unable to.

6. Get your new business credit card in the mail
   Depending on the issuer, you should receive your new business credit card through the mail in two to 12 days if you’re approved.

How do you build business credit?

Just like with personal credit, business credit can be improved by keeping credit utilization ratios low and paying off the balance every month. Keep in mind that more than one late payment can trigger a high penalty APR, which makes it even tougher to get back on track.

The three business credit bureaus, Equifax, Experian and Dun & Bradstreet, calculate business credit scores similar to consumer credit bureaus, except on a scale of 0 to 100 instead of 300 to 850. 

Most credit experts suggest keeping credit utilization below 30 percent. If you need to tap into funds for an expense that exceeds 30 percent of your credit utilization ratio, consider applying for a business loan instead of a business credit card. 

Alternatively, if you find yourself coming close to your credit limit every month, ask your issuer about raising your limit, or explore business cards without pre-set spending limits.

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