Whether your business is a blooming startup or a booming institution, a business credit card can offer many benefits. Not only does it offer higher credit limits, but having a separate card unrelated to personal accounts can help keep records organized for tax season. Here are a few helpful things to keep in mind while considering the best credit card for your business' needs.

Potential Benefits of a Business Card

A business card is much like any personal credit card but with a few additional perks and a handful of caveats. For a business account, the credit limit tends to be higher. This means you can spend more on your business card to fund purchases to fuel your company's growth. It also allows a business to build its own credit score history, which may come in handy for future loans or investments for the company's expansion. Bookkeeping can be much simpler when your business' finances are separate from your personal accounts.

Higher Credit Limits

According to 2020 data from Experian, the average consumer credit limit sat around $31,015 while the average small business credit card limit reached $56,100. Since card issuers set credit limits based on a variety of factors—including your credit score and income—it makes sense the same is taken into account for a business. The sooner your business starts building its own credit history, the easier it will be to increase spending limits and request loans for higher sums.

This is especially helpful for small businesses with more financial constraints. It is much easier to make large purchases such as bulk inventory and material, shipments or travel expenses with a business credit card. The higher spending limit also allows you to make more purchases in a single statement period without maxing out the card. This avoids increasing your credit utilization—the ratio of your credit card's balance to its assigned spending limit.

In short, the lower the credit balance each statement period, the better your business looks. Freedom to make larger purchases for a business also leaves business owners with more independence without having to constantly seek out loans from the bank.

Building Business Credit

Why would a business itself need a credit score? Like individual consumers, businesses have financial profiles, which over time naturally develop a history of spending and revenue patterns.

The benefit of an initial business credit card is establishing and building a business credit score to increase the businesses' credibility and reliability in the eyes of additional credit card companies, banks and investors. A business, like any individual, will also benefit from lower interest rates when a business credit bureau reports a clean record and a steady payment history.

How to Get a Business Credit Card

Applying for a business credit card is simple, but, like any financial decision, requires diligent research. Consider a few important points before filling out online applications for a business credit card.

Determine Your Eligibility

Your business is not required to have incorporated in any way to qualify for a business credit card and the size of your company does not matter for basic card eligibility. You can apply for a business credit card even if the expenses you plan on paying with the card are for a side-gig or if you are the sole-proprietor of a small freelance business.

Whether or not your business will be approved for a benefits-packed, reward-earning card is another issue, however. The first step in applying for a business credit card is determining which card you can qualify for. Your personal credit might make this determination if your business doesn't already have established credit.

The most important factor in applying for any credit card is your or your business' credit history. As a business owner, credit card companies will nearly always want to verify your personal credit score, so ensure you maintain healthy spending habits on existing personal accounts. This will ultimately determine which cards you'll receive approval for.

Major assets and commercial income can help qualify your business for better cards. Don't expect approval for a high-end benefit-heavy business credit card when you're only making a few dollars with a side hustle. You'll need to show substantial income to earn the high credit limits of the best cards.

Gather Required Information

In addition to the personal information you would normally provide for any credit card application, a business credit card application will also ask for proof of your business' existence. Details might include your business' name, registered address, annual revenue, number of employees, estimated spending needs and an employer ID number (your own SSN can usually substitute in the case your business doesn't have an EIN).

The bank or card issuer will ask you to fill out the above information regarding the nature of your business and may have follow-up questions for you during the verification process. Be honest and provide any documentation requested. Even if your new business' current income is still low or nonexistent, it is better to disclose this and provide a business plan showing projected revenue.

It may help to seek out cards offered by banks you already have a relationship with—this can make the application process more comfortable, efficient and successful.

Potential Issues for Business Owners

The balance on the credit card is ultimately your responsibility—as a business owner, you'll usually be required to provide a personal guarantee for your business card. If your business does not make enough to pay off the entire card balance when the payment period ends, you will be responsible for paying off the rest from your personal funds.

This is another reason why your personal credit history will matter when applying for a business credit card—to prove that as an individual consumer you have a reliable payment history and steady income.

Since most cards have a preset credit limit, it may be more difficult for you if your business' monthly spending varies drastically. When applying for a card you will want to carefully examine recurring or initial start-up fees, bonuses, rewards, interest rates and of course, spending limits.

Which Card Is Best for My Business?

The right card for your business will depend largely on how you define your business and how you believe the credit card will serve you in making work-related purchases. Do you travel often for your business? Do you take clients out for frequent meals? Do you buy products in bulk from specific companies that may participate in rewards programs?

These are the kinds of routine purchases to take into account. What will you use the credit card for most often and how large will your average spending sums add up to? The answers to all these questions will help you find the best business card for your business. Here are some cards that might fit your business' needs.

American Express® Business Gold Card

Up to 4X Reward Rate

Earn 4X points in the 2 select categories where you spend the most each month (4X points applies to theRead More

Welcome Bonus

Earn 70,000 points

Regular APR

16.49% - 24.49% Variable

Credit Score

Excellent/Good (700 - 749)

Why We Picked It

A business with significant spending can justify the annual fee and earn massive rewards through the 4x points rate on eligible purchases.

Pros & Cons

  • Flexible redemption and points transfer options
  • Robust travel benefits
  • Automatic 4 points per dollar on the two categories you spend the most each billing period on up to $150,000 in annual spending
  • 25% airline redemption rebate when booking through Amex Travel, up to 250,000 points back each year
  • Very high annual fee relative to benefits
  • 4 points per dollar rate capped at $150,000 in annual spending

Card Details

  • Welcome Offer: Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
  • MORE REWARDS: Get 4X Membership Rewards® points on the 2 select categories where your business spent the most each month. 1X is earned for other purchases. **
  • **4X points apply to the first $150,000 in combined purchases from these 2 categories each calendar year.*
  • AIRLINE BONUS: Get 25% points back after you use points for all or part of an eligible flight booked with Amex Travel, up to 250,000 points back per calendar year.*
  • PAY OVER TIME OPTION: Decide whether you want to pay eligible purchases in full each month—or pay over time with interest.*
  • *Terms Apply

Ink Business Cash® Credit Card

Up to 5% Reward Rate

Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cableRead More

Welcome Bonus

Earn $750 bonus cash back

Regular APR

14.74% - 20.74% Variable

Credit Score

Excellent, Good (700 - 749)

Why We Picked It

Offers enticing cash rewards for those with significant business-related spending, with an added bonus of 0% introductory APR on purchases for the first 12 months of opening your account.

Pros & Cons

  • No additional fee for employee cards
  • High rewards rates in select bonus categories
  • Generous welcome bonus
  • Very high fee for cash advances & balance transfers
  • Spending cap on bonus categories
  • Low rewards rates outside of bonus categories

Card Details

  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring.
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
  • 0% introductory APR for 12 months on purchases

Marriott Bonvoy Business® American Express® Card

Up to 6X Reward Rate

6 points per dollar at hotels participating in the Marriott Bonvoy™ program, 4 points per dollar at restaurants worldwide, atRead More

Welcome Bonus

Earn 125,000 points

Regular APR

17.99% - 26.99% Variable

Credit Score

Excellent/Good (700 - 749)

Why We Picked It

Frequent business travelers who are loyal to Marriott Bonvoy hotel brands will love this card's generous perks and rewards.

Pros & Cons

  • Generous welcome bonus
  • High redemption value for rewards points possible
  • No blackout dates and points never expire
  • Only Marriott enthusiasts can justify the annual fee
  • No non-travel points redemption options
  • No intro APR offer

Card Details

  • Limited Time Offer: Earn 125,000 Marriott Bonvoy Bonus Points after spending $5,000 in purchases on your new Card in your first 3 months of Card Membership. Offer expires 8/31/22.
  • 6x points at hotels participating in the Marriott Bonvoy™ program.
  • 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
  • 2x points on all other eligible purchases.
  • Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
  • Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at a participating hotel. Certain hotels have resort fees.
  • Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
  • Terms apply.

Small Business Credit Cards for Newer Businesses

If your business is young or you've never had a business account before there are certain things to look out for to set you ahead with spending and not set you back with potential mounds of debt. An example might be a card with 0% introductory APR on new purchases. These introductory offers can save you high costs if your business spending calls for large sum purchases all at once and you want to pay them off more slowly over the introductory period without incurring interest. Be warned: do not make purchases you cannot pay off during the period as interest charged after the intro period may be retroactive to the purchase date.

Business Green Rewards Card from American Express *

Business Green Rewards Card from American Express

Up to 2X Reward Rate

Earn 2X points for each dollar you spend on eligible purchases at American Express Travel; Earn 1X points for eachRead More

Welcome Bonus

15,000 points

Annual Fee

$0 introductory annual fee for the first year, then $95

Regular APR

16.49% - 24.49% variable

Credit Score

Excellent Credit (750 - 850)

Pros & Cons

  • The card earns Membership Rewards points, which are highly flexible
  • Spending limit adapts based on factors such as purchase and payment history
  • Some travel benefits
  • Lackluster earning potential, especially compared to other business cards
  • $95 annual fee

Card Details

  • Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases with the Business Green Rewards Card within the first 3 months of card membership
  • Earn 2x points for each dollar you spend on eligible purchases at American Express Travel and 1x points for each dollar you spend on eligible purchases
  • $0 introductory annual fee for the first year, then $95

The Blue Business® Plus Credit Card from American Express

Up to 2X Reward Rate

Earn 2X points on the first $50,000 in purchases each year; Earn unlimited 1X points on purchases thereafter

Welcome Bonus

Earn 15,000 points

Regular APR

15.49% - 23.49% Variable

Credit Score

Excellent/Good (700 - 749)

Why We Picked It

The Blue Business Plus card is a rare example of a no-annual-fee way to game your rewards earnings. You'll earn 2X points on all purchases up to $50,000 per year. It's a perfect fit if your business is small enough to spend less than $50,000 per year. If not, spend up to the $50,000 max, then switch to another card for the rest of the year's purchases. You'll win either way.

Pros & Cons

  • Wide variety of airline transfer partners
  • No annual fee
  • High rewards rate on the first $50,000 in annual spending
  • 2.7% foreign transaction fee
  • 2 points per dollar rewards rate falls to 1 point per dollar after $50,000 in annual spending

Card Details

  • Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
  • Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • You've got the power to use your Card beyond its credit limit* with Expanded Buying Power.
  • *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
  • 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 15.49% – 23.49%, based on your creditworthiness and other factors at account opening.
  • No Annual Fee
  • Terms Apply

Brex 30 Card

Up to 10-20X Reward Rate

Get 10-20x higher limits than traditional business credit cards while earning rewards and cash back on everything you spend, likeRead More

Welcome Bonus

50,000 points

Credit Score

No Credit Check

Card Details

  • 50,000 signup bonus points after spending $9,000+ in the first 30 days
  • Brex offers a corporate credit card designed to help companies boost their spending power and grow faster
  • Get 10-20x higher limits than traditional business credit cards while earning rewards and cash back on everything you spend, like 7x on rideshare and 2x on recurring software
  • Build business credit from day one with a card that's automatically paid monthly
  • No credit check, no personal guarantee, no account fees, and no interest
  • Save time and money with automatic receipt-matching and built-in expense management tools to help you gain detailed insights on your spend
  • Issue unlimited virtual cards to your team, and set custom limits on each card
  • Close the books in record time with QuickBooks, Xero, NetSuite, Concur, and Expensify integrations
  • To get approved for a Brex card with monthly payments, businesses need a linked bank balance of at least $50,000
  • Brex Mastercard® issued by Emigrant Bank, Member FDIC. Brex Cash provided by Brex Treasury LLC, member FINRA and SIPC. Brex Treasury is not a bank; Brex Cash is not a bank account. Testimonials may not represent experiences of all clients. Terms apply, visit brex.com.

Bottom Line

Though attaching a credit card account to your business is not strictly necessary, it is worth looking into for the opportunities it could afford you as your business grows. The ability to accumulate rewards and earn cash back on the card for future or recurring purchases and the opportunities a healthy business credit score can unlock can be an essential financial resource for a young company. Using a separate card for business expenses can also help you keep better track of your personal vs. professional spending.

Choose the card best for your business based on your industry and the average amount of work-related spending you do. Carefully consider how best the card can serve your business before applying.

To view rates and fees of American Express® Business Gold Card, please visit this page.
To view rates and fees of Marriott Bonvoy Business® American Express® Card, please visit this page.
To view rates and fees for The Blue Business® Plus Credit Card from American Express please visit this page.

Frequently Asked Questions

What is a credit limit?

Just about every type of credit card will have an assigned credit limit. This is the maximum amount the credit card company will allow the cardholder to spend on the account at a time before paying down the card's balance. The exception to this rule is a business charge card such as the American Express Business Platinum, which does not have a set limit but requires the amount to be paid in full each month.

Can I increase my business' credit limit?

You may request a spending limit increase on your business credit card. You can show proof your company needs a higher spending limit for specific purchases and that you have the means to maintain a stable credit score. You can also request a temporary increase for a predetermined amount of time.