Small business credit cards definitely do not follow a one-size-fits-all approach, and you should do your research to ensure your choice best fits your needs. Regardless of whether you’re looking for 0 percent financing, travel rewards (defray costs of hotels and flights) or cash back, these are tools you can't afford to overlook – and as a bonus using a small business credit card will help you neatly separate your personal and business expenses.
Read our small business credit card guide to learn more basics, or dive in below and compare some of the best offers on the market now.
"Sounds great," you may be saying, "but do I even qualify for a small business card?" We are so glad you asked... Read more
CardRatings wants to help you understand the ins and outs of small business cards and narrow down your many options. The goal is to help you find the card that is right for you in terms of the features it offers, the rewards that you can easily earn (and will actually use!) and the overall best value for your business.
So let's get started:
It's a broad group of people who can qualify for a small business card given that you don't necessarily need an Employer Identification Number (EIN) to qualify. Credit card issuers consider each application on its own merits, so don't assume you don't qualify. Do keep in mind that your personal credit history will likely be what is used to determine your eligibility and/or credit limit on a business card before you've built up a credit history for your business.
In a phrase: lots of reasons. Probably the most important reason, however, is that it allows you to keep your personal expenses separate from your business expenses. Not only does that separation make your day-to-day bookkeeping easier, it will also come in handy come tax time each year. Check out a few other reasons you could use a small business card in your business' toolbox.
Choosing a small business card requires you to ask questions similar to those you ask when shopping for a personal/consumer card. You'll want to assess your spending, both the typical amounts as well as where you do the bulk of your spending; decide what type of rewards – cash back, miles or points -- will be most beneficial to you; and crunch the numbers to see whether you can offset an annual fee. Here are a few more questions you'll want to ask:
You've done the homework, you know what you want and you're ready to apply. Now what? Just like with consumer cards, these days you can apply for small business credit cards online. Many times, you'll get an immediate or nearly immediate answer. When you sit down to apply, there's a variety of info you'll want to have available related to your business. Remember, though, that just because you don't have all that business-specific info doesn't mean you won't qualify for a business credit card. For instance, if your business doesn't have a tax ID number (EIN), you can enter your personal social security number instead. In general, try to have the following information handy when you apply: