Compare the Best Business Credit Cards

 

 

What is a Business Credit Card?

A business credit card, like a personal card, is a line of revolving credit that comes with an annual interest rate on outstanding balances. These come in all shapes and sizes too, with various features and the possibility to earn rewards for spending. 

Unlike a personal card, however, a business card is designed specifically for business owners and their employees. This means the eligibility requirements, application process, features, credit limits, and the even rewards are laid out a little differently.  

How Do Business Credit Cards Work? 

Business credit cards work like personal cards, with a few key differences – namely, how they use and affect credit. When consumers apply for a business card, they do so for several reasons, including to: 

• Keep personal and company finances separate 
• Track business expenses 
• Access more spending power  
• Take advantage of business-centric perks not available with personal cards 
• Establish and build up business credit 

Activity on most business credit cards gets reported to commercial credit bureaus instead of, or in addition to, consumer credit bureaus. This allows you to establish a credit score for your business, which may be used to obtain financial products, determine vendor terms, and qualify for a business loan. 

Whether or not you already have business credit is also an important factor in the application process for one of these cards. This is where the difference between cards for corporations and cards for small businesses come into play. 

Corporate vs Small Business Credit Cards 

A corporate credit card – sometimes referred to as a commercial card – is meant for larger companies that already have an established credit history and revenue stream. This allows issuers to rely on the corporation’s credit score to determine creditworthiness. Meanwhile, credit cards for small businesses often rely on the owner’s personal credit score – particularly if no business score is available. 

This distinction is important, because it determines who is responsible for debt repayment in the event that the account goes into default. On a corporate card, the company assumes responsibility, which means only the business score takes a hit.  

Alternately, small business cards require business owners to sign a personal guarantee they will repay any debt. This means that in the face of bankruptcy or delinquency, the owner’s personal credit score can be affected.  

Note: Though delinquencies on a business card may affect a consumer credit score, positive credit behavior generally does not. This depends on whether the issuer reports such activity to both consumer and commercial credit bureaus. 

How to Get a Business Credit Card 

The basic components of getting a business credit card mirror those of personal cards (i.e. submitting an application and undergoing a credit check). However, who can qualify and the requirements to apply differ between these processes. Not just anyone can receive this type of credit card – specifically, you need to own some type of business and be prepared to provide proof when you apply.  

However, you aren’t limited to businesses in the traditional sense. You can also qualify as a sole proprietor, if you fall into categories like: 

• Independent contractor/freelancer 
• Online seller 
• Consultant 
• Tutor 

What Are the Requirements for a Business Credit Card? 

Whether you qualify as a corporation, partnership, LLC, or sole proprietor will determine the information you need to provide on the application. As a formal business, you would use a federal tax ID number or Employer Identification Number (EIN).  

Meanwhile, you would provide your own Social Security Number as a sole proprietor. The issuer will also require information about the business. This includes but is not limited to the business’s: 

• Name (which could be just your name) 
• Structure and number of employees 
• Industry 
• Annual revenue and expenses 
• Address and phone number 

Standout Features of the Best Business Credit Cards 

In addition to low APRs and fees, there are plenty of perks unique to business credit cards that you’ll want to look out for. One common feature are the business-centric bonus categories on everything from travel and office supplies to advertising and internet access. You’ll also want to look out for benefits like free employee cards and finance management tools.  

To learn more about the basics of business cards, check out our full-length guide for this card category. Meanwhile, you can find some of the top business credit card options below.  

Best Business Credit Cards for Travel 

Companies that frequently rely on travel to conduct business can earn major rewards and discounts with the right business travel card. This is particularly true for those who tend to travel with the same airlines, as airline-branded cards offer even more perks for customer loyalty.  

Yet even non-cobranded cards like the Capital One® Spark® Miles for Business can amass miles pretty quickly. This card is well known for its massive signup bonus opportunities – sometimes offering up to 200,000 miles in the first few months for those who meet the spending requirements. Plus, all eligible purchases earn a minimum of 2X miles, with even more for travel booked through Capital One Travel. 

For businesses that frequently fly, the AAdvantage® Aviator® Business Mastercard® is another excellent option.

Best Cash Back Business Credit Cards 

Cash back credit cards for business can vary widely, giving you plenty of room to find one with categories that fit your expenses. For example, you might elect to save more on the essentials, like computer hardware, software and other office supplies. If your business has more particular spending habits, you can find cards that offer cash back on: 

• Advertising 
• Shipping 
• Cable 
• Amazon purchases 

The U.S. Bank Business Cash Rewards Elite Mastercard, for instance, earns cash back at office supply stores, gas stations, and with cell phone providers. For an extra boost, you can earn a hefty cash back bonus as a new cardholder, as well as up to $250 every year on your account anniversary.  

Best Credit Cards for Startups 

If your business is still in the startup phase, it may be worthwhile to apply for a card that offers a nice signup bonus. The upfront costs you pay to launch your business can help you knock out any spending requirement to activate those extra rewards.  

The Ink Business Cash Credit Card from Chase easily comes to mind as a solid option for brand new businesses. On top of bonus rewards for office supplies, gas, dining, internet, cable and phone services, you also get a $500 credit when you spend a certain amount. Plus, the long 0% intro APR can help shoulder your startup costs interest-free while you grow your revenue. 

Small Business Credit Cards for Bad Credit 

Since your business credit card may be tied to your personal credit, it can be difficult to get approved with a poor score. In that case, you might consider starting with a secured business credit card instead. With the right offer, you won’t even notice that your account is secured by a deposit. 

For example, the Wells Fargo Business Secured Credit Card can help you build business credit with a security deposit as low as $500 or as high as $25,000. Plus, you’ll get access to rewards, up to 10 free employee cards, and online management tools. 

How to Choose the Right Credit Card for Your Business 

From new business cards to recurring favorites, there are dozens of offers to sift through. We make sure to offer unbiased reviews so you can make the right decision for your budding business. If you need a little more guidance, check out our news and resources for additional credit card insights. Search for the best business credit card to grow your company today!