How to get a business credit card: Eligibility, requirements and the top cards to consider
Business credit cards can be an effective tool for companies to finance purchases, earn rewards, build credit, and manage their cash flow. Just like with a personal credit card, approval can be tied to your personal credit score, and the cards with the most robust features and benefits typically are earmarked for those with the best credit. Learn more about using a business credit card, who is eligible, and what the steps are to apply.
What is a business credit card?
A business credit card is just like a personal credit card, it can be used to make purchases, pay for services, and in some cases, finance a balance over time. However, business credit cards often feature perks like rewards, benefits, and software integration features that are tailored to business owners. In addition, keeping your business expenses on a business card and separate from your personal card can simplify things at tax time.
Most business credit cards do not report your card's balance or activity to your personal credit file. However, banks usually require a personal guarantee to protect them from your business defaulting on payments. For this reason, if you miss a payment or default on the account, your personal credit score may be negatively affected.
Who is eligible for a business credit card?
Business credit cards are available to any size of business, from solo endeavors to startups to companies with dozens of employees. In fact, you may be eligible for a business credit card if you own rental properties, sell on Etsy, drive for Uber or make money outside of your normal W-2 job with a side gig.
Having an Employer Identification Number (EIN) is not a requirement either. Many entrepreneurs run their businesses using their Social Security Number (SSN). You can apply for a business credit card, whether you're using an EIN or an SSN to file taxes for your income.
Aspiring business owners can also apply for a business credit card before they've made their first sale. Using a business card for your startup costs can make it easier accounting-wise to ensure you're claiming all eligible expenses on your taxes.
Comparing business credit card options
There’s a wide array of business credit card options to choose from, depending on your budget, spending patterns. and which rewards and benefits matter most to you. Here are a few of the top business credit cards for a variety of needs.
Best cash-back business card: Ink Business Unlimited® Credit Card
The Ink Business Unlimited has no annual fee and earns an unlimited 1.5% cash back on every purchase. New cardholders also have access to a 0% intro APR offer on purchases for 12 months. After that, a 16.99%–24.99% variable APR applies. While some business owners may prefer to earn travel rewards, cash back allows you to choose how to spend your rewards without limitations. Rewards can be redeemed for cash back as a statement credit, a deposit to your qualifying checking or savings account, or used to buy gift cards and travel through Chase. You can also transfer your rewards to one of Chase’s 12+ travel loyalty partners which include JetBlue, Southwest and Hyatt. This could yield greater value for your rewards.
Best business card for big spenders: Capital One Spark Cash Plus
The Capital One Spark Cash Plus is a charge card that has no present spending limit. Instead, its purchasing power adjusts to your needs based on your spending behavior and past payment history so you have the flexibility to accommodate a bigger-than-usual buy. The card has an annual fee of $150, but that fee is refunded if you spend at least $150,000 in a calendar year. Adding authorized users to the card carries no additional fee.
Best flexible points credit card: Ink Business Preferred® Credit Card
Maximize rewards on monthly business expenses with the Ink Business Preferred Credit Card. The card has a $95 annual fee but earns 3x points on the first $150,000 in combined spending each year on shipping, online advertising, travel and internet, phone and cable services–all typical areas of business spending. All other spending earns 1x. The card also includes complimentary employee cards, and includes purchase, cellphone and travel protections. Points earned with this card can be redeemed for cash back, gift cards or travel booked through Chase Travel.
Best premium travel business card: Capital One Venture X Business
Although it carries a $395 annual fee, the Capital One Venture X Business Card offers premium travel benefits that can offset that cost. As a cardholder, you’ll receive complimentary access to more than 1,800 airport lounges, including the exclusive Capital One lounges plus Priority Pass lounges. It also includes a $300 annual Capital One travel booking credit, reimbursement for the application fee for TSA PreCheck or Global Entry once every four years, and Premier Collection hotel benefits like free breakfast for two.
The card earns an unlimited 10x on hotels and rental card booked through Capital One, 5X on flights booked through Capital One and 2x miles on all other purchases. The miles earned with this card are best redeemed for travel booked through Capital One or transferred to over a dozen Capital One airline and hotel loyalty transfer partners.
Best airline business credit card: Delta SkyMiles® Gold Business Card
Business owners who frequently take to the skies for work will find that theDelta SkyMiles® Gold Business Card can be a strong addition to their wallet. The card offers a $0 intro annual fee for the first year, then $150 annually and offers robust benefits with the airline. Cardholders get the first checked bag for free for themselves and up to eight travel companions, priority boarding, and 20% off inflight purchases. You'll also get a 15% discount when booking award flights on Delta, and if you spend at least $10,000 per year you'll receive a $200 Delta flight credit.
The card earns elevated rewards on two business-friendly categories of 2x miles on Delta purchases and on U.S.-eligible purchases at shipping providers and select media advertising purchases, and 1x on all other spending.
Best hotel business credit card: IHG One Rewards Premier Business Credit Card
Business owners can turn their monthly expenses into hotel points for free hotel nights in the future with the IHG One Rewards Business Credit Card. The $99-annual-fee card earns up to 26x points at IHG hotels and 5x points on travel, dining, gas, and select business purchases, and 3x on all other spending. In addition to the sky-high earn rate on stays within the brand, you can fast-track to even more complimentary stays with a free night each year on your card anniversary worth up to 40,000 points and IHG’s redeem three nights get a fourth night free promotion. Those perks alone can outweigh the card’s relatively modest annual fee. When you spend $20,000 within a calendar year, you’ll also earn a $100 statement credit and 10,000 bonus points.
What info do you need to include in your application?
When applying for a business credit card, you'll generally need two sets of information. The first is your personal information since most banks require your personal guarantee. The required information may vary depending on which bank you're applying with, but it generally includes:
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Full name
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Date of birth
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Social Security number (SSN)
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Mother's maiden name
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Home address
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Phone number and email address
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Total gross annual personal income (personally)
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Your role in the company
You must also provide information about your business, even if you’re just starting out. Be honest and accurate. Banks do approve applications for new business owners.
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Name of business
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Legal business structure (LLC, sole proprietor etc.)
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Trade name or "doing business as" [DBA] (if applicable)
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Type of business (aka business classification code or SIC)
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Number of employees
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Business Tax ID (Employer Identification Number [EIN], ITIN or SSN)
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Physical and mailing address
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Date business established
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Annual business revenue
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Estimated monthly spend
Applying for a business credit card is a wise move for your company. It’s never a good idea to mix personal and business expenses. Credit cards can provide quick financing for your business and an opportunity to earn rewards on your monthly expenses. Using a credit card allows businesses to easily track company expenses and assign them to employees, internal costs and client projects. Finding the best business credit card for your needs depends on how much you spend, which categories you use the most and which type of rewards you prefer. When selecting a card, pay attention to annual fees, interest rates, foreign transaction fees and other potential costs to keep your expenses low.
This article was edited by Robin Saks Frankel
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
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