Business Credit Cards

What is a business credit card for?

A business card keeps your business spending in one place, separate from your personal purchases. That makes bookkeeping and tax time much easier, because every charge on the statement is a business expense.

Business cards can also earn rewards on common business costs like advertising, office supplies, shipping or gas, and many let you add employee cards with their own spending limits.

Do you need an LLC or a big business to get one?

No. Sole proprietors, freelancers and people with a side business can apply too. If you don't have a separate tax ID, you can usually use your Social Security number and list yourself as the business. The application asks about your business revenue and your personal income.

Your personal credit usually matters for a new or small business, and in most cases you're personally responsible for paying the balance, even though the card is in the business's name.

Business card or personal card for business costs?

You can use a personal card for business costs, but your records get mixed together, and sorting them out at tax time takes longer. A business card keeps everything separate and often comes with spending reports and tools for tracking receipts.

One difference to know: some federal protections that cover personal cards, like limits on certain rate increases, don't apply the same way to business cards. Read the card's terms so you know how it works.

How do you pick a business card?

Look at where your business spends the most. If it's spread out, a flat-rate card is simple. If most of it goes to one or two areas, like ads or supplies, a card that pays more there can earn more. Say your business puts $3,000 a month on the card at 2% back. That's $60 a month, or $720 a year.

If you're starting up and have big early costs, a business card with a 0% intro APR could help you spread them out. The guides below cover new businesses, low monthly spending and specific industries.