5 Best Business Credit Cards for Business Owners

Using a business credit card makes it much easier to separate personal and professional expenses at tax time. It’s also possible to open free employee cards with most business cards, streamlining spending and eliminating the hassle of reimbursing employees for business charges.

Many business credit cards exist, offering perks like rewards, interest-free financing, perks like luxury travel, extended warranties, insurance, and more. If your credit could be better, you may still be able to get approved for a business card, however. That depends on your credit score (670+, according to Experian), but you may still qualify for a card.

Many good business credit cards offer rewards, 0% intro APR financing and other benefits at a reasonable price. If you spend a lot of money on credit cards, you should select the one that offers the rewards you want based on how much you spend each month, what categories you spend most of your money on, and the amount you spend in each. Your credit score and whether you’re willing to pay a fee are also critical factors.

What is a Business Credit Card?

Business credit cards allow business owners to use financing today and repay it later. Business credit cards have a set spending limit, determining how much you can spend. The amount of credit available increases as you pay off your balance.

Most business credit cards offer rewards, benefits, and introductory APR financing. When selecting a credit card, you can choose which features are most important to your business. A business credit card may charge an annual fee to cover these benefits.

Business owners can avoid interest charges on their purchases if they pay off their statement balances on time. You can avoid late fees by paying the monthly minimum if you cannot afford the full amount. The interest rate is calculated based on the average daily balance for any unpaid balance carried over to the next month.

Types of Cards for Businesses

The two types of business credit cards are small-business credit cards and corporate credit cards. Small businesses will find this list of business credit cards useful, but consider using corporate business cards as your business grows.

Small-Business Credit Cards

Most small-business credit cards are available to people with good personal credit histories and sufficient income, whether they operate a corporation or are freelancers. Using a small-business credit card helps separate your business assets from your assets. The program offers a variety of small business management tools and rewards.

Some credit card issuers report to business credit bureaus, but most don’t. If you’re unclear about something, contact your issuer for clarification. Whether your business succeeds or fails, you’re still responsible for any card debt incurred.

Corporate Credit Cards

The corporate business credit card is generally reserved for businesses that generate more than $4 million in annual revenue. There are more rewards on corporate cards than on small-business cards, as well as more credit limits and useful management tools than on small-business cards. They are also called purchasing or procurement cards, designed to be used for specific purchases within a company. Corporations usually use charge cards to track employee spending.

Unlike small-business cards, corporate cards are not personally liable if your company goes out of business. It is your business that is the debtor in this case.

Top 5 Best Business Credit Cards

A business credit card can offer a variety of benefits. You can earn rewards or cash back, collect loyalty points, get travel protections, and manage expenses. When choosing the right business credit card, it is important to identify which factors matter most for your business. Rewards points, cash back, or credit-building help are among the factors to consider.

Ink Business Preferred

Ink Business Preferred Credit Card is a great option for business owners looking to earn rewards on common business expenses, such as travel, shipping, internet and telephone services, and advertising.

When you spend $8,000 in the first three months after opening your account, you will receive 100,000 points as a welcome bonus. Plus, you’ll earn 25% more points when redeeming them for travel through Chase Ultimate Rewards. A 100,000-point bonus is therefore worth $1,250 toward travel.

Business Platinum Card from American Express

 The American Express Business Platinum Card offers business owners many premium benefits. Whether you’re looking to travel, protect your purchases, earn rewards or manage expenses, there is a benefit.

The Amex Travel Credit Card offers a competitive 5X Membership Rewards® point bonus for flights and prepaid accommodations on AmexTravel.com as well as 1.5X Membership Rewards points for eligible purchases at U.S. retailers, construction material and hardware suppliers, software providers, and U.S. shipping companies, as well as for purchases of $5,000 or more elsewhere, up to a maximum of $2 million per year. Amex Travel offers 35% back on points redeemed for flights, up to 500,000 per year. The terms and conditions apply.

Chase Ink Business Unlimited

Chase Ink Business Unlimited is the best option for business owners who want to avoid paying an annual fee. The card offers a generous welcome bonus and a 1.5 percent cash-back earning rate on every purchase, which makes it especially appealing to those who do not want to keep track of spending categories.

Ink Business Preferred Credit Card and Chase Sapphire Preferred Credit Card users can convert the cashback earned with this card into transferrable Chase Ultimate Rewards points. Additionally, Chase Ink Business Unlimited offers a 0% intro APR on new purchases for the first 12 months and a variable APR of 18.49% – 24.49% after that.

The American Express Business Gold Card

The costs can add up when your business requires you to ship products nationwide. A card like the American Express Business Gold Card can help offset the cost of shipping your products if you use it with competitive rewards.

The Amex Business Gold Card offers flexible rewards that encourage businesses to spend the most on the 2 categories with the highest rewards rate of 4X Membership Rewards points each billing cycle. If you make $150,000 in purchases from your top 2 categories in a calendar year (then 1X afterward), you will earn 4X points. A $150,000 cap will only apply to the top two categories in each billing cycle.

Blue Business Plus Credit Card from American Express

A Blue Business® Plus Credit Card from American Express is an excellent option for business owners looking to finance new purchases without incurring interest. From the account’s opening date, you can enjoy a 0% introductory APR on purchases for 12 months (after which the APR will range between 18.49% and 26.49%; the APR cannot exceed 29.99%).

You may benefit from the special financing period if you plan to purchase office furniture, electronics, appliances, or other business items. As a bonus, your everyday business purchases will earn you above-average returns, and employee cards can be added for free.

Who Qualifies for a Business Credit Card?

There are many different types of businesses these days, sometimes different from traditional ones. A business credit card owner does not need to own a storefront, a warehouse or any other major assets.

Business credit cards can be issued to people in any industry with good personal and business credit. Don’t let being self-employed or falling into one of these nontraditional business categories discourage you:

• Sellers on Etsy, Amazon, or eBay.
•  The freelancers.
•  Contractors and consultants who work independently.
•  The self-published author.

There is also no requirement that your business be profitable or in operation for a specific number of years. Approval is usually based on your income and credit history.

Business credit cards may only be available to you if you qualify for a consumer credit card as a new business owner. You may qualify for a secured credit card for your business, which may offer some credit access. However, it is still possible to rebuild your credit history. You will eventually qualify for better credit cards for business and personal use.

In many cases, it is in your best interest to establish a separate business entity before applying for a credit card for your business. Business credit cards can be obtained even by sole proprietors. Ensure that your business expenses are tracked and that you keep proper records.

How to Apply

1. Select the Right Card for You. Check out the card fees and rates, possible rewards, and whether the credit card company reports to business credit reporting agencies. Applying for too many credit cards simultaneously is not a good idea, as it will impact your credit score.
2. Submit an Application. For creditworthiness determination, most applications can be completed online, and you must provide personal and business information. It is necessary to provide a tax identification number, Social Security number, business contact information, income information, and business expenses and income. The minimum credit score for most business credit cards is 670.
3.  Await Approval. Some companies offer instant approval, while others may take several days. Those denied unsecured credit may consider a secured business credit card an alternative.

Pros and cons of a small business credit card

Business credit cards allow you to keep business expenses separate from personal expenses and streamline bookkeeping. The rewards on these cards are particularly generous for business expenses and higher welcome bonuses.

Higher minimum spending requirements with business card welcome bonuses are also possible. Your credit report will still be pulled when you apply for a business credit card.

Pros

• Separates business and personal expenses
•  Reward points for popular business purchases
•  Larger offers
•  Adding and managing employee cards is easy.

Cons

• Earning an intro bonus usually requires a higher minimum spend.
•  The hard pull of your credit report (usually)

How To Compare Business Credit Cards

Choosing the best business credit card for your business in 2023 can take time and effort, with many different types available. There are several factors to consider before selecting the best credit card for a prospective applicant.

Annual Fee

Many cards offer membership benefits as part of their annual fees. The amount of rewards or cash back required to offset the annual fee should be calculated by prospective cardholders.

Earnings Structure

Some cards have high reward rates, but when redeeming your points or miles, they need to catch up. Make sure you evaluate each point value closely and go beyond the number of points to consider what you will get with those points.

Intro APR

Some cards offer not only a welcome bonus but also an introductory APR. Consider the length of time the card’s low-interest rate applies before the regular interest rate applies and plan to pay off any large purchases before the intro APR expires.

Ongoing APR

A low-interest rate card, or one that offers interest-free periods, can save your business money if it needs to carry a balance. Your creditworthiness determines your APR, so the lowest rate shown in the terms and conditions may not be the rate you receive.

Financing Options

Do you have a charge card or a credit card? The charge card must be paid off monthly, whereas a credit card can carry a balance with interest. Consider which card best fits your needs and ensure you know which type to apply for.

Why Get a Business Credit Card?

A Fast Capital Source

A business credit card can provide quick and convenient access to capital for any business need. Using a credit card can bridge the gap between the customer’s payment need and their receipt of payment. Business owners can use a credit card to pay for expenses such as signage, inventory, and advertising during the initial setting up of their company. Business credit cards can purchase capital assets, such as machinery, furniture, and electrical equipment. During this period, your business can generate income while repaying the balance.

The Separation of Personal and Business Assets

When used diligently, a business credit card can help you maintain a strict separation between your personal and business finances. It is possible to lose your limited liability protection if you are sued or go through bankruptcy, exposing your record of mixing up your business and personal accounts or using business assets for your benefit. Corporations and limited liability companies provide liability protection to their owners, thereby protecting their assets.

As a business credit card typically requires a personal guarantee, make sure you know what category you fall into as an individual. A business credit profile changes the rules once it’s established. Until then, keep a strong FICO score and a spotless credit report.

Features of Bookkeeping and Accounting

You can also check the types of management tools included with some business cards if you are still trying to decide whether you need one. Here is a partial list of the tools you might encounter:

• Get up-to-date usage reports for all cardholders.
•  Each card can be set up to have a spending limit.
•  Credit cards can be cancelled or suspended.
•  Instantly retrieving historical activity for each card.
•  Setting up individual account alerts.
•  Limitations on cash advances are being adjusted.
•  Keeping transactions and statements in sync.
•  Automated data feeds to your accounting/bookkeeping software.
•  Organize expenses automatically into categories for expense management.
•  Mobile device access to account controls.

Tax Benefits

• Tax deductions. Business credit cards can be used to purchase capital equipment, helping you to take advantage of tax-planning opportunities. It may be possible to take a tax deduction in the current year while paying off a credit card debt for equipment repair before the end of the year.
•  Simplified taxation. There are a variety of business credit cards today that offer accounting and reporting features that make it easy to download a detailed report of all expenses charged to the card. There are small-business accounting programs that can automatically migrate this information.

How to Get the Most Out of Your Business Credit Card?

The advantages of having a business credit card range from building your business credit score to earning lucrative rewards. However, late fees and interest charges can quickly erode the benefits. Your small business card can be most valuable if you use it carefully and thoughtfully.

Credit Cards are the Best Way to Pay

When entrepreneurs pay their bills on time and don’t overspend, using a rewards credit card for everything will add up quickly to points, miles and cash back. Avoid using your credit card whenever a convenience charge is added.

Get Your Signup Bonus Now

A signup bonus typically requires you to make a few thousand dollars of purchases within the first few months of opening an account. Be sure to check your card’s terms and keep track of your spending.

Find Out When the Introductory 0% APR Ends

Make sure you pay attention to your credit card statements and keep track of when your promotional offers expire.

Tax Deductions for Interest and Fees

The interest and fees you pay on your card are considered business expenses if you use them only for business expenses. Therefore, you can deduct them from your taxes.

What’s the Difference Between Business Cards and Personal Cards?

There are several important differences between business credit cards and consumer credit cards:

• There may be a higher limit on business credit cards.
•  Cards can be distributed to employees by business owners, but the owner is still responsible for all charges incurred on the cards.
•  Personal and business credit bureaus may receive information about credit usage and payments from banks that issue credit cards.
•  Business owners can benefit from rewards and discounts, such as FedEx shipping discounts or office supply discounts.

As mentioned, mixing business and personal purchases on the same credit card could endanger your limited liability protection, putting your assets at risk in case of a lawsuit against your corporation or LLC.

FAQs

Do Business Credit Cards Check Your Credit Score?

Yes, your credit report will be checked by the card issuer in most cases. Approximately five points will be deducted from your credit score as a result of this inquiry. You will be reported to your credit report after that if you miss a payment or default on your business credit card.

How Long Does It Take to Get a Business Credit Card?

Credit cards for businesses sometimes advertise near-instant approval, but if your credit could be better, it might take a week or two to receive your card.

How Many Business Credit Cards Should I Have?

The number of business cards you need can be calculated with a different formula. Ensure your business credit card offers rewards in the areas you spend the most money on. Consider adding one or more small business cards if one does not meet your needs so that you can maximize your rewards by using them strategically.

The use of multiple credit cards can be a very effective method of reducing business expenses. A travel rewards card, an airline-branded card, a hotel-branded card, a cash-back card and a general rewards point card are some options you have to choose from. These credit cards also offer a travel insurance policy, extended warranty, and concierge services.

Why Small Business Owners Should Get a Small Business Credit Card?

There are several reasons why small business owners should open a small business credit card. Separate credit cards for business transactions are essential for bookkeeping. Many business credit cards come with built-in spending reports and free employee cards that can be customized with spending limits.

Small business cards can help you run your business efficiently and reward you for your efforts. Online advertising and internet services are all included in the rewards programs offered by the top business cards. Typically, these cards offer other useful features, such as computer and software credits and travel insurance.

What Do You Need to Apply for a Business Credit Card?

There are differences among lenders when it comes to business credit card applications, but most ask for similar information. They want to know your business name, tax ID number, annual revenues, address, telephone number, and the type of business you run. Aside from names, Social Security numbers, contact information, and annual incomes, most applications ask for information about the business owners.