Savvy business owners always looking for ways to boost cash flow and increase their bottom line. When you open a business credit card, you can achieve both goals when using it to make purchases for your small business. As a bonus, you may receive additional benefits along the way. Whether you're just starting out or have an established business, it is easy to get business credit cards to meet your business needs. In this article, you’ll learn the nine most important things to know about getting a business credit card.

9 Reasons Why You May Want to Open a Business Credit Card

There are numerous reasons why you may want to open a business credit card. To help you understand the value you can receive, here are nine important facts about getting a credit card for small business.

1. You Don’t Need to Have a Corporation to Get a Business Credit Card

There’s a widespread misconception that you need to have a corporation to get a business credit card. But this isn’t the case because there are numerous credit cards for small business owners. Your business can be a partnership, LLC, or sole proprietorship and still qualify for a business credit card. It is also possible to get a business credit card for a new business, even if you're still in the process of starting your company.

2. Your Personal Credit Could Impact Your Chances of Approval

Many business owners think they need to have an established business credit score in order to open a business credit card. Unless you have a multi-million dollar business, business credit card applications are largely evaluated based on your personal credit score.

Even if you have a corporation or LLC, most credit issuers require a personal guarantee before opening your business credit card. This ensures that the credit card issuer is repaid in case your business fails.

If you are asked for a personal guarantee, carefully evaluate the pros and cons. A business setback could lead to personal financial obligations long after the business has shut down. Talk to a Certified Public Accountant (CPA) about how opening a business credit card can affect your personal finances.

3. You Might Be Able to Get an Introductory 0% Interest Rate Period

For a new business owner, it’s sometimes difficult – or impossible – to find affordable financing for small business purchases. When you open a business credit card and use it to make purchases, you get about a month to pay off your purchases and avoid interest. However, if you carry a balance from month to month, business credit cards may not be the best  option because of their high-interest rates.

Luckily, a number of small business cards offer introductory 0% interest periods when you open a business credit card. The introductory 0% interest periods are usually a year or less for business credit cards, but some promotions may last longer. By contrast, some consumer cards offer 0% periods for up to 21 months.

There are typically two types of intro APR offers:

• Purchase offers. These offers avoid interest charges on all eligible purchases made during the intro APR period. This is the best credit card for business owners who need to make a large purchase and want extra time paying off the balance.
• Balance transfer offers. Transferring a balance from another credit card eliminates the high interest charges until the promotion expires. Typically, the transfer must occur during the first 60 to 120 days after opening your account. The bank usually charges a 3% to 5% balance transfer fee based on the transaction amount.

Some business credit cards offer both types of intro APR promotions, so take time to compare card features before applying. When the promotion expires, the standard APR applies to any unpaid balance starting from the expiration date.

With that being said, you can save a lot of money on interest if you open a business credit card with an intro APR offer.

4. You Can Get Rewards

The best business credit card for business owners earns rewards on their purchases. You can choose between rewards programs offering cash back rewards, hotel points, airline miles, or general travel rewards. You may also earn a sign-up bonus when you open a business credit card and meet the card's minimum spending requirement before the deadline.

In addition to your spending, you can also earn rewards on purchases made with employee cards. Many business credit cards offer free employee cards with individual spending limits and custom reporting. All rewards earned from their spending will combine into your rewards account.

Reward categories vary by card. You can get a card that earns a flat rate on all purchases or one that offers higher rewards on select bonus categories. The American Express Business Gold Card offers cardholders 4X points on airfare purchases directly from airlines and U.S. purchases on online, TV and radio advertising, computer hardware, software and cloud systems from select technology providers, gas stations, restaurants, and shipping. All other categories earn just 1X points on their purchases.

Minimum spending requirements also vary depending on the business credit card. The Ink Business Preferred Credit Card offers 90,000 Chase Ultimate Rewards points to new cardholders. However, to earn the bonus, you must spend at least $8,000 on the card during the first three months after opening your account.

If you cannot meet the minimum spending requirement, you might be able to pull forward certain purchases. But avoid overspending to the point where you cannot pay the balance in full each month. When the spending requirement is too high, open a business credit card with lower requirements that matche your budget.

5. It May Be Worth Paying an Annual Fee

Annual fees on a business credit card can be as low as $0 (no annual fee) or up to $695+ for premium credit cards like The Business Platinum Card. Typically, the level of rewards, benefits, and features increase along with the annual fee. Sometimes, the bank will waive the first year's annual fee, so you can try out the card before committing to an annual fee in subsequent years.

How do you decide if an annual fee is worth it?

The annual fee will be worth it if the value of the rewards and benefits outweigh the cost. It is helpful to compare against a card with no annual fee to determine the net value received based on your spending patterns and the card's benefits. During the first year, also consider how much the card's welcome bonus is.

Benefits you may receive if you open a business credit card with an annual fee:

• Higher rewards rate
• Larger welcome bonus
• Business travel protection (ex: trip delay, trip cancellation, rental car insurance)
• Purchase protections (ex: extended warranty, return protection, purchase protection, cell phone insurance)
• Travel benefits (ex: airport lounge access, elite status, free hotel night, free checked bags)

6. The Annual Percentage Rate (APR) May Be High After a 0% Introductory APR Period

As stated earlier, you may be able to find a credit card with a 0% intro APR period. However, the APR can increase significantly after that period – the average APR for a credit card is 21.76% (as of August 2024).

What happens after the 0% intro period is over? If you cannot pay off the balance before the intro APR offer expires, you could be saddled with high credit card payments for the foreseeable future.

Shop around and then open a business credit card with a low APR after the intro period. A "low" interest rate is still considered an expensive way to finance purchases. Make your best effort to pay your balance in full each month. Otherwise, get a business loan with a lower interest rate and fixed monthly payments within your budget.

7. You May Be Able to Get a Higher Credit Limit on a Business Credit Card Than a Personal Credit Card

In many cases, business credit cards have higher credit limits than personal credit cards, as business revenue is often higher than personal income.

You might not be able to find out the maximum credit limit for a business credit card before submitting your application, as the spending limit can vary a lot based on the characteristics of your small business. But here are five of the best high-limit business credit cards for 2025.

8. You Should Separate Your Business Expenses and Personal Expenses

When you open a business credit card, it is easier to keep track of your business expenses. You won't miss out on valuable tax deductions, and your business expenses will be kept separate from your personal expenses. Having a clear separation between your business and personal life will be helpful if you ever get audited by the IRS.

Using one of the best credit cards for business owners also ensures that your personal credit won't be affected. Most banks only report business credit cards to personal credit reports if you miss a payment or default on the account. This cleans up your FICO credit score and ensures that business debt won't impact your ability to get approved for a mortgage, car loan, or personal card.

9. A Business Credit Card Could Help You Build Business Credit

For new small business owners, opening a business credit card provides an excellent opportunity to build business credit. By using the card responsibly, you'll develop positive financial habits and grow your business credit score. Paying your credit card on time and keeping a low credit utilization ratio shows lenders you can handle debt.

When choosing among the best credit cards for small business owners, seek out cards that report to the business credit bureaus. These business credit bureaus include Dun & Bradstreet, Experian, and Equifax.

The Bottom Line

With a business credit card, you can improve your cash flow position, build your business credit, and take advantage of several perks. While some benefits (like a welcome bonus or an intro APR offer) happen just once, other benefits (like rewards, travel benefits, or purchase protections) occur yearly. There are many business credit cards with no annual fee, but you may find more value overall in cards that charge an annual fee. Determine what's most important to you, then narrow down your choices along those factors to find the best business credit card for your small business.

Frequently Asked Questions (FAQs)

Can I use my EIN to get a credit card?

Yes, when opening a business credit card, include your employer identification number (EIN) on the application. This allows the bank to include your business credit score in their decision, and your card activity will help build credit for your business. Most banks require the owners to provide their Social Security numbers (SSN) to verify their credit history and to guarantee the card in case the business does not pay.

Can a new LLC open a business credit card?

Yes, it is easy to get business credit cards from many banks, even for startups and new LLCs. As long as your personal credit qualifies, you should be able to open a business credit card without having any revenue or expenses yet.

What credit score do you need to open a business credit card?

The credit score to open a business credit card varies by bank and the type of card. Luxury credit cards often require excellent credit, while secured cards can be opened by people with bad credit. If your credit is bad, you may need to place a security deposit with the bank. You may be able to earn an upgrade to an unsecured card by using the card responsibly and making your payments on time for a minimum amount of time.

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