Best Business Credit Cards of 2024

What is a business credit card?

A business credit card is just like a normal credit card – where you get a credit limit from the card issuer, you can pay for goods and services up to that limit, and pay a monthly minimum payment or higher to maintain or clear the debt. The difference with a business credit card is that it is issued to a business, rather than a single person. (Though it may be issued to a person within the business, but linked to a business account.)

How does a business credit card work?

A business credit card may be used to help the business owner separate all their business expenses from their own (by using the card for the business exclusively), or used to ease ups and downs in cash flow. For example, if they need to order a small volume of products for their retail store, but they don’t feel comfortable using their working capital in case of an emergency.

Anything they pay for will then be added to the account, which must then be paid in full or in part (with a minimum monthly payment) each month. If a balance is left on the card from one payment period to the next, interest will be applied.

What type of people typically use business credit cards?

The type of people and businesses that typically use business cards are:

• Small retail stores
• Cafes and restaurants
• Consultants and other business owners that travel a lot
• Any company paying for ads in advance of getting the money from sales
• Any company that pays vendors outside the US (fraud protection)
• To finance larger purchases, like new equipment

That said, almost any business can benefit from a business credit card.

When is it a good time to apply for a business credit card?

It’s a good time to apply for a business credit card when:

• Your personal credit score is in good shape (you may struggle to qualify with a score of less than 650)
• You need to finance a large expense, but it’s not large enough to warrant a business loan (such as new laptops or computers, paying for travel that you’ll invoice a client for later, etc)
• You travel a lot and want to receive the rewards associated with some business credit cards
• You have plans for something big in the future, and you want to start building your business credit history
• You do a lot of business with vendors you aren’t always sure are trustworthy

What are the pros and cons of business credit cards?

PROS

• They’re generally easier to qualify for than many other forms of business borrowing
• Flexible financing – it’s there whenever you need it
• Revolving – meaning once you pay it off you can use it again
• Some offer rewards for spending (such as airmiles)
• You can build your business’s credit history

CONS

• If you have had some personal finance issues in the recent past, you may struggle to get approved
• Interest rates are typically high, so if you’re not using it for rewards or fraud protection, you may find it a costly way to finance your growth
• Not all cards offer fraud protection, so make sure you check the one you’re applying for does

What is the difference between a business credit card and a personal credit card?

A personal credit card can be used for any personal expenses, from your weekly trip to the grocery store to financing your holiday shopping, or even your new side-hustle idea.

A business credit card can only be used for business expenses, and is tied to the finances of the business.

Can you get a business credit card without an actual business?

No – most issuers will ask for your legal business information during the application process as well as other business deals. If you want to finance a future startup you have yet to decide on, apply for a personal credit card until you have established your business.

Can a sole proprietor get a business credit card?

Yes, if your personal credit score is relatively good and you have proof of your revenue, you shouldn’t have any problems securing a business credit card.

Do business credit cards help build credit?

Yes, a business credit card will help your business build up a credit history, which can be difficult to get in the early days of your business. In most cases, they will also help improve your personal credit score. Of course it also works in reverse; if you fail to meet a monthly payment, both your business and personal credit may be harmed.

Do business credit cards affect personal credit?

Yes, in most cases. If your business credit card is tied to you, your personal credit is also likely to take a hit if you fail to meet a payment.

Can I use my business credit card for personal use?

While it’s not illegal to use a business credit card for personal expenses, it will likely violate the terms and conditions of your card. If your card issuer finds out and is concerned by the way you’re using the card, you may have your account closed and you’ll likely become personally responsible for the debt.

Can you deduct credit card interest as a business expense?

Yes, provided the interest was accrued on a business expense (which should be exclusively what you’re using your business credit card for, anyway).

What is the best business credit card?

We’ve listed many of the best business credit cards here, but some of the best business credit cards are:

• American Express Blue Business Cash Card – no annual fee, 0% APR for up to 12 months (16-19% typically after), cash back of 1-2%, and $250 cash back upon sign up.
• Chase Ink Business Cash Card – no annual fee, a 0% APR period, cash back of 1-5%, $750 in cash back
• Capital One Spark Cash Plus Card - $150 annual fee, 2% cash back, $1,000 cash back for sign up and a potential $200 bonus a year

Make sure you compare cards carefully to choose the card that will best benefit your business.

Can I get a business credit card with fair credit?

You’ll likely be able to find a business credit card if you have fair credit, just be aware that you likely won’t have any of the rewards bonuses of the best cards, a relatively small credit limit, and a high interest rate.

Can I get a business credit card with bad credit?

You likely won’t be able to get a business credit card with bad credit. If you have a bad personal credit history and you want to borrow for your business that has high revenue, look into options that use your revenue as proof that you can pay back the money, rather than your credit score, such as invoice financing or a merchant cash advance.

How to Get Approved for a Business Credit Card

To get approved for a business credit card, you’ll need:

• A good or excellent personal credit score
• Proof of revenue
• Usually 1+ years in business (though there are exceptions)
• All your legal business information
• Relatively little outstanding business debt

Wherever possible, take advantage of cards that offer preapproval so you’ll have a good idea of whether you’ll be approved or not.

Are business credit cards a good idea?

If you have plenty of revenue, then yes, a business credit card can be a good idea. The only time when they’re not a good idea is when you’re struggling in your business and you need to use it to cover essential expenses. Ideally, you should be using the card to protect your business, earn additional rewards for your spending, or ease cash flow so you aren’t always working with little working capital.

How to Open a Business Credit Card: Compare Business Card Offers

If you’re ready to open a business credit card, your first step should be to compare the best business credit cards here to find the one that best suits your needs. Once you’ve found the one that’s best for your business, all you need to do is apply. Follow the application process and supply any additional documentation the card issuer asks for (such as proof of revenue). Once approved, you’ll often have the card in your hands within 10 working days.