Business Credit Cards: The Complete Guide for Business Owners

A business credit card can separate company spending from personal finances, earn rewards on expenses you already have, and give you flexible short-term financing. This guide explains how business cards work, how to compare them, and how to choose one that fits your business.

How business credit cards work

A business credit card gives your company a revolving line of credit. You make purchases, receive a monthly statement, and either pay in full or carry a balance with interest. Cards are issued by banks such as Chase, American Express and Bank of America, and most offer employee cards, spending controls and downloadable statements for bookkeeping.

Most issuers require a personal guarantee, which means you are personally responsible for the debt. Many business cards also report to your personal credit bureaus, so balances and late payments can affect your personal credit. Protections that apply to consumer cards under the federal CARD Act generally do not apply to business cards in the same way, so read the issuer’s terms.

Types of business credit cards

What to compare

• Annual fee: weigh it against the rewards you will realistically earn.
• APR: the rate that applies if you carry a balance, including any variable rate.
• Rewards structure: match categories to your actual spending, such as advertising, shipping, software, travel or dining.
• Welcome offers: check the spending requirement and time limit, and whether you can meet it without overspending.
• Other fees: foreign transactions, cash advances, late payments and employee cards.
• Credit reporting: whether the issuer reports to business bureaus, personal bureaus or both.
• Tools: employee card controls, expense categorization and accounting software integrations.

How to qualify

Issuers generally review your personal credit, business information, and estimated revenue. You do not need an LLC. Sole proprietors can usually apply with their Social Security number, though you can often use an EIN for other structures. Typical application information includes:

• Legal business name, address and phone, and business type
• EIN or Social Security number
• Years in business and number of employees
• Estimated annual revenue and monthly spending
• Owner’s personal information and income

Stronger personal credit and a documented business improve your chances. Each application may result in a credit inquiry, so apply selectively.

General qualification criteria

These are general, commonly cited guidelines and not guarantees. Each provider sets its own requirements, and meeting them does not ensure approval.

How to choose in five steps

• List your top spending categories for the past three months.
• Decide whether you will pay in full monthly or carry a balance.
• Estimate yearly rewards and subtract the annual fee.
• Compare APR, fees and reporting practices.
• Read the issuer’s terms before applying, and confirm which credit bureaus the card reports to.

Using a business card well

• Use the card for business expenses only so your books stay clean.
• Pay on time and keep your balance low relative to your limit.
• Track employee spending and set individual limits.
• Set autopay for at least the minimum, and pay the statement balance to avoid interest.
• Review your statements regularly for errors or fraud.

Common mistakes

• Chasing a welcome offer you cannot meet with normal spending.
• Mixing personal and business purchases.
• Carrying a balance on a rewards card, where interest can outweigh rewards.
• Applying for many cards in a short period.
• Ignoring the annual fee after the first year.

Related comparisons

Best business credit cards for small businesses · Business credit card vs. business loan

Frequently asked questions

Epic Capital Solutions is not a lender, bank or card issuer and does not make credit decisions. This guide is general information, not financial, legal or tax advice. Rates, fees and terms are set by providers and change often.