what is a business credit card

And, in addition to $0 fraud liability protection, the card also offers $100,000 in travel accident insurance. Additional services include auto rental insurance, emergency ticket replacement, lost-luggage assistance and legal and medical referrals when you’re away from home. You do not need to include alimony, child support, or separate maintenance income unless you want to have it considerd as a basis for repaying a loan.

Paying the bill on time every month will help the cardholder avoid being personally responsible for business expenses (and interest). Your experience as a business credit card user will ultimately depend on the bank that issues the card. The bank decides whether to report your card’s activity to your personal credit reports, which ultimately affect your personal credit score. A business credit card can offer all sorts of perks to your small business. It can help you build business credit, improve your cash flow, earn your rewards, and give your employees the ability to handle business expenses. If the lender enacts the personal guarantee provisions for repayment, then any delinquencies on the card could be reported on the individual’s credit report and damage their credit score.

What credit score do I need for a business credit card?

Read our Capital One Spark Cash Select for Excellent Credit review or jump back to offer details. The best feature about the Capital on Tap card will be its potential for a low variable interest rate. The discounts and credits offered with the card include Slack and Zoom discounts, Google Ads credits and more. The Amex Business Platinum card is certainly expensive, but plentiful credits and travel perks can make it worth it for the right kind of cardholder. Ultimate Rewards are extremely versatile, and the generous intro bonus and rewards rate on this card makes it easy to rack up flexible points.

Business and personal credit scores are different and mostly independent, but there can be times when the two become intertwined. Some lenders may require a personal guarantee from the business owner or another person if the owner lacks enough credit what is a business credit card history. In such instances, a business owner may end up with personal liability for business credit card debt. The CARD Act gives consumers various protections, such as preventing card issuers from raising interest rates without warning.

Shop All American Express Business Credit Cards

Although the balance must be paid in full monthly, the flexibility in spending can make it easier for business owners to manage their cash flow. Similar to personal cards, cash back business cards are a popular choice for business owners looking for simple ways to put money back in their pockets and maintain cash flow. Some cash back cards offer a straightforward flat rate on all your business expenditures while others have tiered rewards in different bonus categories that may be more useful if they align with your spending. A business credit card is a revolving line of credit used by small-business owners to make purchases or withdraw cash.

Plus, it comes with an introductory APR offer to make it easier to keep your balance paid off. There are enough perks with this card to help occasional and frequent United flyers offset the annual fee that kicks in after the first year. Cardholders can take advantage of first checked bag free for you and a companion, two annual United Club one-time passes and discounts on United inflight purchases. Small-business owners who don’t travel often and prefer to earn straightforward cash back rewards on business expenses. You’ll enjoy valuable, practical benefits like an annual travel credit, anniversary bonus miles and airport lounge access, all of which should be easy for frequent travelers to make the most of. In fact, these perks may offer enough value to offset the annual fee on their own, so the card could make sense even if you only travel occasionally.

About the Reviewer

And because businesses typically spend more than individuals, business credit cards usually offer more value in perks and rewards. Business credit cards offer a convenient way to make big purchases like office furniture, equipment or manufacturing materials. But every business owner—from sole proprietors to corporate CEOs—should know that business cards work differently than personal credit cards.

  • Charge cards often don’t have a set credit limit or interest rate, allowing entrepreneurs more freedom to manage expenses.
  • You’ll get that impressive rate on the first $150,000 you spend in two eligible categories.
  • Points multipliers also may be offered in designated categories such as gas stations or car rental agencies.
  • We weighed several different factors, like annual fees, other fees (including cash advance fees and foreign transaction fees), promotional and ongoing APR, reward offerings and rates, and welcome bonus offers.
  • That said, given the ability of businesses to put large expenses on credit cards, I’m now including the maximum number of bonus points you can earn — assuming your business meets all the spending requirements.
  • Most recently before joining Bankrate, Robert worked as an editor and writer at The Ascent by The Motley Fool, covering a number of personal finance topics, including credit cards, mortgages and loans.
  • During this time, you can avoid interest charges for up to 12 or 18 months depending on the offer.

Responding to a credit card preapproval offer, if you have one, may also improve your odds. It’s also possible that a large purchase—or a couple of large expenditures—can max out your credit card and leave you without a source of funds at all. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either.

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