Why Use a Business Credit Card?

Business credit cards can be one of the simplest ways to cover expenses. Unlike traditional loans, they’re often easier to qualify for—especially if you’re just starting out. Many cards are based on your personal credit score, so you don’t always need years of business history.

Having a separate card for your business also helps you build business credit. Over time, strong business credit can make it easier to get approved for bigger loans and better financing options.

Other benefits include:

• Convenience: Quick payments, easy returns, and fraud protection.

• Wide acceptance: Many vendors don’t take checks but do accept cards.

• Recordkeeping: Monthly and annual statements simplify tracking expenses.

• Rewards: Points, cashback, travel perks, extended warranties, and purchase protections.

When Should You Get One?

If you’re already using a personal card for business, it’s smarter to switch to a dedicated business credit card. This keeps your business and personal expenses separate—which is important for taxes, bookkeeping, and protecting your personal credit.

Some cards let you pay your balance in full each month, while others let you carry a balance and pay interest over time.

How Business Credit Cards Build Credit

Using a business credit card responsibly can help establish your company’s credit profile. Many card issuers report activity to business credit bureaus like Equifax, Experian, and Dun & Bradstreet.

That means paying on time and keeping balances low can grow your business credit score—opening the door to better financing in the future.

How to Qualify

When applying, lenders may ask for:

• Personal and business credit history

• Checking or savings account details

• Business information (even if you’re a sole proprietor)

Good personal credit usually makes it easier to qualify. If your credit is less than perfect, you might still get approved for cards with lower limits or prepaid cards that help you build credit over time.

What NOT to Use a Business Credit Card For

Business credit cards are great for travel, office supplies, and everyday purchases. But they’re not meant for everything.

Avoid using them for:

• Payroll

• Debt consolidation

For larger investments, like equipment, loans or leases are usually better options.

Keeping Finances Organized

Using a business credit card makes it easy to separate personal and business expenses. Fees, interest, and charges can all be deducted as business expenses. You can also issue cards to employees, making it easier to track their purchases.

Choosing the Right Card

Before applying, consider:

• Acceptance: Visa and Mastercard are widely accepted; American Express may not be.

• Annual fees: Some are free, others can be $30–$100+ per year (cards with premium rewards cost more).

• Interest rates: Intro offers may start at 0%, but standard rates range from 10% to 24%.

• Rate changes: Late or missed payments can trigger higher rates.

Tip: If you travel often, consider airline or hotel-branded cards for perks like free bags, upgrades, and reward points.

Applying for a Card

The process is similar to getting a personal card:

• Apply online or through your bank/credit union.

• Provide your business details (and EIN, if you have one).

• List any partners who own more than 25% of your business.

Some applications give instant approval.

Final Thoughts

A business credit card can be a powerful tool if used wisely. It helps manage cash flow, simplifies bookkeeping, and may even earn you rewards. Most importantly, it can help build your business credit, which makes future financing easier.

Like any financial tool, the key is using it responsibly—pay on time, avoid unnecessary debt, and choose a card that fits your business needs.