5 Must-Knows About a Business Credit Card

Having access to quick capital makes your life as a business owner much easier. No matter if you run a company of 15 employees or 150, having a business credit card makes managing business transactions and expenses much easier.

From buying business equipment to funding a business trip, credit cards come in handy. If you’re new to business credit cards, there are some things you’ll want to know.

Business credit card

Keep reading for 5 business credit card must-knows.

1. Expect High Credit Limits

Lenders aren’t looking to approve business owners for $10k credit cards. If you’re applying for a business credit card, be prepared for high credit limits.

In fact, you may even come across cards without a credit limit!

Unlike personal credit cards, business cards are meant to support high expenses. It’s well-known that business owners charge much more than the average consumer.

This is one of the biggest benefits of having a business credit card.

With these cards, you can almost ensure you’ll have the credit needed to fund any business purchase. Unlike a personal credit card, you’re likely to have credit left over, which keeps you from maxing out or going over the 30-50% credit usage threshold.

But with a high credit limit comes risk. It’s even more important to ensure your monthly purchases are paid off within 30 days. Otherwise you risk high interest charges and dings to your credit.

2. Personal & Business Credit History Matter

When a lender determines your eligibility for a business credit card, your personal and business credit histories are analyzed. For lenders, past use of your credit cards is most important.

Lenders are also more likely to approve you for a credit card if your business insurance policies and licenses are up-to-date. This proves that you’re in charge of a legitimate business. Without this paperwork, a lender may see you as a heightened risk.

To boost your chances of getting approved for a business credit card:

  • Ensure all three credit bureaus have accurate information
  • Avoid applying for numerous cards at once
  • Pay off debt to boost debt/income ratio
  • Ensure all business policies are current

3. Know What’s Reported and Where

Opening a business credit card will be reported to most credit bureaus. However, you want to ensure that any account activity on the business credit score is reported to the correct credit bureaus.

As a business owner, you want to separate personal and business expenses. Otherwise you run the risk of a hectic tax season. Needless to say, the IRS frowns upon the co-mingling of personal and business purchases.

To maintain a business credit profile, ensure your account activity is reported to the proper credit bureaus. Check with the lender to ensure activity reports are sent to:

  • D&B
  • Equifax
  • Experian

Keeps tabs on your business credit score by signing up for CreditSignal or Nav. Both services are free and easy to use.

Credit card swipe for payment

4. Look for Card Member Benefits

Business expenses can add up, quickly. No matter if you’re spending for travel, office supplies, or new IT equipment, chances are you can find a rewards program that tailors to your business spending habits.

Most, if not all business credit cards offer a rewards program. These programs allow you to earn points that can be used towards purchases.

Other programs offer discounts and cashback on business-related expenses such as gas, travel, and even hotel stays.

Are you leery about another credit card in your wallet? While debt is risky, business credit cards offer benefits that make business expenses worthwhile.

Notable benefits include:

  • Ability to issue cards to employees
  • Easier accounting and bookkeeping
  • Tailored terms for your business needs
  • Access to accounting tools such as expense reporting, purchase records, and integration with financial systems

Aside from rewards, a business credit card can make your life as a business owner much easier!

5. Fine Print Matters

When applying for credit cards, there’s more to it than the APR and annual fee. While the excitement of rewards and cash back can be blinding, signing up for the wrong credit card can get you and your business into financial trouble.

Avoid making the mistake of applying for a business credit card without reading the fine print.

Most cards have specific terms for liability. Some cards offer joint and several liability while others offer commercial liability.

If your card offers joint and several liability, this means that you and the business are responsible for debts. For commercial liability, the business is solely responsible for debts.

Before signing, know your responsibilities.


Getting a business credit card is a huge financial step, but it also offers financial relief. For emergency purchases or large purchases that cannot be covered by overhead, having a credit card handy will make business purchases hassle-free.