You can also take advantage of online and mobile banking to view up-to-the-minute account activity. Your accounting department should review each statement to make sure each line item is a charge you authorized. It is helpful, however, to have clear rules regarding who gets a card, whether it’s based on seniority, position, or other factors. This can help avoid confusion and mitigate bad feelings from employees who would like a card but are not eligible.

The higher the credit score, the better interest rates and lines of credit you might be considered for if you ever want to apply for a business loan or other kinds of financing. When it comes to business relationships, this score may even act as a signal to potential vendors, suppliers and other strategic business partners on how your business manages its credit. Business credit cards can be a helpful way to kickstart growth by providing access to credit. This credit may allow you to invest in the systems, equipment and people you need to in order to reach your business goals. There are a few things to consider before selecting a business credit card. Separating business spending from personal spending can save owners a significant amount of bookkeeping time.

Chase Ink Business Preferred® Card: Best for points rewards

Applying for a business credit card is similar to applying for a personal credit card but requires some additional information about your business, possibly including your business’ EIN and revenue numbers. Your business and personal addresses, names and other info may also be required. The Ink Business Preferred® Credit Card remains an all-star business credit card with one of the most lucrative welcome bonuses available on any business credit card in the marketplace.

• These government-backed loans cap interest rates, helping to make small business loans more affordable.
• However, you may consider steering clear of using a personal credit card for business expenses if it ends up muddying your taxes or you need a higher credit limit for pricier purchases.
• It earns big on Hilton stays as well as purchases at U.S. gas stations, U.S. purchases for shipping and on wireless telephone services purchased directly from U.S. service providers.
• However, businesses can also do a few other things to help establish credit.
• These credit cards are often easier to get approved since they have lower minimum credit requirements.
• The United℠ Business Card has benefits when flying United that outweigh its annual fee and some significant additional perks including a $100 flight credit with qualifying purchases.

Just like having a strong personal credit score can qualify you for better rates on your loans, a good business score can also signal to lenders that you’re qualified for financing on purchases or other loans. Business credit cards also often offer useful introductory APRs on purchases for extended periods. Of course, opening a business credit card is one of the best ways to build business credit. Small businesses, even startups, can be eligible for business credit cards, so this is often step number one for businesses looking to build a credit history. When applying for a business credit card, it’s acceptable to put $0 for revenue, which is often the case with a startup. All business credit cards can be used to make purchases, but there are distinct differences among them.

Card Name

This includes sole proprietors, such as freelancers, independent contractors and gig-economy workers. Business credit cards offer small and medium-sized businesses an opportunity to use regular revolving lines of credit to simplify and make business operations more convenient. Though in many respects business credit cards operate much the same as consumer credit cards, several differences set business credit cards apart from consumer cards. This card is unique in that it’s available to business owners with less-than-stellar credit (in exchange for a security deposit), earns 1.5% cash back on all purchases and charges no annual fee. Yes, you’re applying for a business credit card, but your personal credit history plays a major role in the approval process.

• The best time to get a new business credit card is when your business has a big spend coming up so that you can take advantage of earning the sign-up bonus.
• However, credit score alone does not guarantee or imply approval for any financial product.
• Small business owners and independent proprietors may have joint and several liability on their card meaning both the business and the cardholder are liable for debts.
• Eligible purchases are also covered with purchase protection and an extended warranty.
• Bank, Wells Fargo, Citibank, and Capital One―also offer excellent business credit card choices, as you can see from our rankings.

This lets potential lenders and credit card issuers know how responsible a business owner is with business debts. Card issuers look at both personal and business credit history to decide whether someone qualifies for a credit card and what the credit limit for a new line of credit will be. Issuers may report card activity to business credit bureaus, including Dun & Bradstreet, Experian Business what is a business credit card Credit and Equifax Small Business. Some card issuers have voluntarily extended some of those protections to their business credit cards, but applicants shouldn’t assume that unless it’s spelled out in the card agreement. In addition, business credit cards sometimes offer more flexible repayment terms, designed to appeal specifically to businesses whose cash flow may be irregular.

Comparing the best business credit cards

If you choose the reward points, you’ll get 1,000 bonus points each billing cycle when you spend $1,000 on qualifying purchases. To get the Wells Fargo Business Secured Card, you’ll have to put down a minimum deposit of $500. If your business requires frequent travel, a business travel credit card is a great way to not only offset travel expenses but also take advantage of perks like lounge access and travel insurance. You can often increase the value of the points you earn on these cards even more by redeeming them through issuer membership programs.

When paired with a premium Chase Ultimate Rewards® card, rewards are treated as transferable Ultimate Rewards points which makes this card even more valuable. The Ink Business Unlimited tops the Ink Preferred if you want a straightforward earnings rate rather than bonus categories as long as you pair it with a card that has transferrable rewards. When it comes to making the most of business transactions, using a business credit card can be a rewarding strategy. Business credit card applications vary among lenders, but most request similar information.