How to get a business credit card
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BLUEPRINT
Updated 11:05 a.m. UTC Nov. 14, 2023
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Whether you’re selling crafts on Etsy or launching a new startup, a business credit card can help keep your business and personal expenses separate while also rewarding you with points or cash back for those purchases.
Plus, your business doesn’t need to have a formal business structure, such as an S Corp, partnership or LLC, to qualify for a business card. Owning a business credit card can also help you build a positive business credit profile that can help you secure future loans or lines of credit.
Ink Business Unlimited® Credit Card
What is a business credit card and how does it work?
Business credit cards work much the same as personal credit cards, but often offer rewards programs tailored to common business expenses, such as office supplies and internet services, and tools to help business owners manage spending, such as setting employee card spending limits, purchase tracking and downloadable spending data to integrate with accounting software programs.
In addition, business credit cards can often come with higher credit limits than personal credit cards, allowing business owners to finance large expenses over time.
Used responsibly, a business credit card can be a valuable tool to help owners establish a solid business credit history and credit score, separate from your personal credit history, which can help build credibility with lenders, vendors and possibly investors when looking to expand.
The downside of business credit cards is that they don’t come with the same CARD Act protections as personal credit cards, although some issuers have incorporated some of these protections on their business cards.
For example, the following protections are mandated by law on personal cards, but not business cards:
- Arbitrary interest rate changes on existing balances: Personal cards require issuers to give a 45-day notice of an APR change and any APR change will only apply to new purchases.
- Double-cycle billing: This is when the issuer assesses interest charges not only on your current billing period, but for the billing cycle prior to the current period.
- Universal default: If you make a late payment past 30 days, a business card may hike your APR on your entire balance instead of on just new purchases.
- Payment allocation: The CARD Act requires that amounts paid in excess of the minimum payment on a personal credit card be applied to the balance with the highest interest rate first.
Benefits of a business card
A business card can offer the following benefits to business owners:
- Keeping personal and business expenses separate: This is one of the primary reasons to get a business card as mixing personal and business purchases can be difficult to track—especially at tax time—if you’re just using a personal card for everything.
- Streamlined accounting: Business cards typically come with the ability to download purchase records and import those into popular accounting programs such as Quickbooks, allowing you to track and analyze those expenses.
- Finance purchases over time: A business credit card allows you to purchase supplies and equipment that you can choose to finance over time. That line of credit can be very helpful when cash flow is inconsistent or you need to make some capital expenditures.
- Manage and control employee expenses: Instead of reimbursing employees for business expenses, providing them with a company credit card can eliminate that hassle. Plus, some business cards allow the primary cardholder to set spending limits and restrict certain types of purchases on employee cards.
- Earn rewards on business purchases: Business owners can offset some of their business card expenses through cash-back programs, sign-up bonuses and reward points that can be redeemed for travel or statement credits.
- Travel and purchase protections: As with any credit card, your business card will protect purchases made with the card if those items are damaged or stolen. In addition, some travel-centric business cards also include valuable travel protections, such as for lost luggage, trip interruption and cancellation, car rental coverage and more.
- Build a business credit profile: Having a strong business credit profile can help you qualify for future loans and financing at competitive rates. Your business will need a Data Universal Numbering System – (DUNS) number to get the ball rolling. To get a DUNS number, your business should be established as a legal entity (S-Corp, LLC, etc.) in your state. Most issuers will report your payment activity to the business credit profiles that you can set up with the big three consumer credit bureaus (Equifax, Experian and TransUnion). Your payment activity is typically not reported to the consumer credit bureaus, although some credit card issuers will report late or missed payments to the consumer credit bureaus. Since most business credit cards require a personal guarantee, delinquent payment on a business credit card will affect your personal credit score.
Who is a business card best for?
Business credit cards are best for small business owners looking for:
- A convenient way to separate personal and business expenses.
- The ability to track expenses and monitor spending.
- The chance to earn rewards on business spending.
- A way to establish a business credit profile.
- Tools to track expenditures for tax purposes.
- The opportunity to finance purchases over time.
- Purchase protection and additional credit card benefits, such as travel protections.
- A way to manage cash flow.
Small business cards should not be confused with corporate cards, which are reserved for established corporations where the company typically is legally responsible for charges made on the card rather than an individual.
How to get a business credit card
Before you apply for a business credit card, it’s best to know your personal credit score to help narrow down what type of business cards you can qualify for since the issuer will be checking your personal credit history after you submit your application.
Know that if your credit isn’t stellar, there are only a small handful of business cards available and some of those may require a security deposit that acts as your credit line. These can be great tools to help you raise your credit score when used responsibly, and after your credit score improves, you can swap that secured card for a regular, unsecured business card.
You’ll also want to narrow down what type of business card will best suit your business needs. For example, if your company has a lot of travel expenses, you may look for a business card that rewards you with points that can be redeemed against future travel purchases, has generous travel protections and doesn’t charge foreign transaction fees on purchases made abroad.
Or you may prefer a business card that offers a certain cash-back rate for business purchases that can be redeemed as statement credits or bank deposits.
Other considerations when reviewing business card options include whether the card assesses an annual fee, offers a welcome bonus (such as an initial statement credit after you spend a certain amount on the card), rewards you for purchases in certain categories, intro APR offers, and other business-related benefits such as employee cards.
How to apply for a business credit card
Applying for a business card is almost as simple as applying for a personal credit card; and the approval process is much the same as the issuer will review your personal credit profile (and business credit profile if one exists) to determine whether you qualify.
However, know that like personal credit cards, business card issuers require applicants to meet certain credit requirements in order to be approved. The better your credit scores, the more likely you are to be approved for a business card.
For entrepreneurs with poor credit, know that there are cards out there to help you build a positive credit profile, such as the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card * The information for the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. .
For a business card application, you’ll need to include the following information:
- Your personal information, such as name, address, Social Security number and income.
- Your business information, including business name, legal business structure (sole proprietorship, nonprofit, partnership, LLC or corporation).
- Annual business revenue, if any. If you’re just getting started, you can put $0 but the issuer may ask what your personal income is or require additional information.
- Number of employees (if any).
- Your business category and/or business type and estimated month spend.
If your company is a partnership or corporation, you’ll most likely need to include your employer identification number (EIN), but otherwise, your SSN should suffice.
Know that once you are approved for a business credit card, you will be personally responsible for the card account rather than your business entity—meaning that any late payments or mishandling of the account will be reported to the credit bureaus, which can negatively impact your personal credit history and credit scores.
Comparing business credit cards for your business
Getting the right business credit card for your business will boil down to what you can qualify for, what type of rewards would benefit your business, whether you’re willing to pay an annual fee, plus any business tools and benefits that would be a good fit.
For example, the Chase Ink Business Unlimited® Credit Card offers a 0% intro APR for 12 months on purchases, then a 18.49% to 24.49% variable APR applies to purchases and balance transfers. A balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater, applies. It has a $0 annual fee, and offers an unlimited 1.5% cash back on purchases. Plus, new cardholders can earn a $750 cash back after spending $6,000 on purchases in the first three months of account opening. You’ll need a good to excellent credit score, which FICO generally defines as 700 to 850, to qualify.
Conversely, if your credit needs rebuilding, you may want to start with a secured personal card, like the OpenSky® Secured Visa® Credit Card * The information for the OpenSky® Secured Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. , which doesn’t require a credit check when you apply. You’ll need to submit a security deposit of at least $200, which will serve as your credit line (which may be increased at the request of the cardholder provided the issuer approves). The card reports account activity to all three credit bureaus, so borrowing and repaying with the card in a responsible manner will help boost your credit score. There is a $35 annual fee and also a 25.64% variable APR on purchases.
Know that there are dozens of small business credit cards from major card issuing banks, such as American Express, Chase, Capital One, Wells Fargo, and more, as well as major airlines and hotel chains that all cater to a variety of business needs.
Frequently asked questions (FAQs)
Yes. Once you apply, the business card issuer will review your personal credit history and credit score to determine your eligibility for the card.
Yes. You can apply for a business credit card without having a business by just listing your name as the business name and your Social Security number as your tax identification number. However, some issuers may require you to include an EIN and may base their approval on the amount of business income you list on the application.
Business owners with a good to excellent personal credit score (670 to 850 FICO) are more likely to be approved for a small business card than someone with a fair or poor credit score (300 to 669 FICO). However, there are secured business cards designed to help business owners build up their credit score.
Yes, but that request may or may not be granted depending on your business income, how long you’ve been using the card and whether you’ve managed the account responsibly. There is no harm in asking by calling the number on the back of your card and speaking to a customer service representative.
*The information for the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card and OpenSky® Secured Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
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