How To Choose the Best Business Credit Card

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Running a business usually requires you to keep a few plates spinning, even if you’re not a solo entrepreneur. Things can easily start to fall to the wayside, but your business finances are not something that you can afford to let slip.

That’s why one of the smartest early moves you can make is choosing a business credit card that works for you and sets your business up for stable growth.

The right business credit card can help you organize and separate expenses, manage cash flow, and earn valuable rewards. But with so many cards out there, it can be hard to know which one fits your business. 

1. Know Your Spending Patterns

Sure, it's exciting, but before you dive into comparing cards, take some time to analyze how your business actually spends money. You want to make sure you get the most value back from every dollar you spend.

You can learn a lot by identifying the trends in your actual business spending (versus what you think you should be spending on). 

Do you spend a lot on gas and vehicle maintenance? Are you frequently paying for digital ad campaigns or software subscriptions? Understanding these habits will help focus your options.

Common business expense categories

• Office supplies and software subscriptions
• Internet, phone, and utility bills
• Advertising and marketing
• Gas and transportation
• Travel and dining
• Inventory and shipping costs

2. Choose the Right Rewards

Once you’ve identified your major spending categories, you can match them to cards that reward those kinds of purchases. 

Business credit cards typically offer one of three types of rewards: cashback, points, or travel miles. What you choose depends on your business needs and preferences.

Cashback vs. points vs. miles

• Cashback: Great if you want simplicity and flexibility. You can usually redeem your rewards as a statement credit or deposit at certain intervals throughout the year.
• Points: Often part of a card issuer’s rewards program, points can be redeemed for all kinds of goods and services depending on the card.
• Travel miles: Ideal if you or your team travel frequently for business and want to offset costs with flight or hotel rewards.

Bonus categories vs. flat-rate rewards

You’ll notice that some cards offer higher rewards in certain categories (like 5% on office supplies), while others offer a flat 1.5% or 2% back on all purchases.

If your business spending is predictable and heavy in a certain category, go with a bonus category card. But if your expenses are varied or inconsistent, then flat-rate rewards keep it simple while still allowing you to maximize value.

Annual fees

Some of the best business cards have high annual fees, but it’s possible for the rewards and benefits to make up for the fees (and then some). 

Compare your estimated rewards earnings with the cost of the fee to see if it’s worth paying.

For example, if you travel often, cards like the Ink Business Unlimited® Credit Card or the American Express® Business Gold Card are popular choices that offer strong travel rewards. 

On the other hand, if your spending is more focused on everyday purchases, cards like the Ink Business Cash® Credit Card deliver solid cashback without complexity.

3. Consider Rates, Fees, and Other Factors

Beyond rewards, don’t forget to compare key costs and terms.

• Annual fee: Some cards have none, while others may charge as much as $395 or more per year.
• Annual percentage rate (APR): Rates vary, and this is one aspect that you want to make sure you get right, especially if you plan to carry a balance.
• Grace period: The time you have to pay your bill in full before interest kicks in.
• Foreign transaction fees: If you travel or make international purchases, look for a card with low or no foreign fees.
• Credit limit: You want plenty of flexibility to ensure you keep your utilization ratio on the low end.

Keep in mind that you won’t see APRs or credit limit ranges until you’re approved, but you can still compare most general features between cards to help focus your decision.

4. Look for Business-Specific Benefits

Beyond rewards, many business credit cards come with built-in tools that help you run things smoothly. These perks may not sound as exciting as the sign-up offer, but they can seriously streamline your finances, not to mention save you money.

Built-in expense tracking

Many business cards include detailed purchase reports or year-end summaries, which can make it easier to track where your money’s going. 

Some will also integrate with your existing bookkeeping software, which is a huge plus when it comes to tax season.

Employee cards and spending controls

If you have a team, you might want to look for a credit card that lets you issue employee cards. 

Some of these even come with customizable limits to help you delegate purchases without losing transparency or financial control.

Purchase protection and extended warranties

Cards with purchase protection may cover items that are damaged or stolen shortly after purchase. 

Extended warranty coverage can bring some peace of mind for big-ticket items like electronics or specialized equipment, especially if they are essential to your work. 

Travel perks for business trips

For frequent business travelers, little extras like car rental insurance, trip delay coverage, and airport lounge access can make a big difference. 

Just keep in mind that these perks are usually found on premium cards like the Capital One Venture X Rewards Credit Card, The Business Platinum Card® from American Express, or the Sapphire Reserve for Business℠, but they can quickly add value if you’re on the road often.

COMPARE: Best Business Credit Cards for Travel

5. Build Your Business Credit Responsibly

A business credit card doesn’t just provide streamlined spending — it also helps build a credit profile tied to your business. 

That can pay off down the line if you decide to try for a loan, improved terms, or higher credit limits.

• Apply using your business information: Whether you're a sole proprietor or incorporated, make sure you're using your legal business name and tax ID (or just your Social Security number if you're applying as an individual).
  
• Keep business and personal expenses separate: This will keep your bookkeeping clean and strengthen your business's overall financial identity. This is especially important if you think you might sell your business down the line.
  
• Pay on time: Late payments can impact both your business and personal credit score, depending on how your card issuer reports activity.
  
• Don't max out your limit: Using too much of your available credit will lower your utilization ratio, which is a big factor in your credit score. Aim for 30% of your overall limit.

Not all business cards report to commercial credit bureaus — some only report to personal bureaus. But if building business credit is a priority, check whether your card reports to agencies like Dun & Bradstreet, Experian Business, or Equifax Small Business.

Remember that responsible credit use over time will help you access better financing options, vendor terms, and even lower insurance premiums in the future.

Credit Card Application Tips

Applying for a business credit card is similar to a personal card, with some extra info needed in regards to your business. 

Generally, you’ll have to provide the following:

• Legal name, contact info, and Social Security number
• Business name (if applicable), address, and phone number
• Type of business and estimated annual revenue
• Years in business and number of employees

Don’t worry if you don’t have all of this information. Even if your business is new or just a side hustle, you can still qualify for a business credit card. 

Most issuers primarily consider your personal credit score and income.

RELATED: 3 Tips for Starting a Business

FAQs

Do I need a business license or EIN to get a business credit card?

No, not necessarily. Many business credit cards allow sole proprietors to apply using their own name and SSN. However, having an EIN can help if you want to build a more distinct business profile, or apply for multiple cards in the future.

How many business credit cards should I have?

Start with one card that matches your biggest spending needs. As your business grows, you might add a second card to take advantage of different rewards categories or to separate spending across departments or types of expenses.

Will applying for a business credit card affect my personal credit score?

In most cases, it can. Generally, business card issuers check your personal credit when you apply, which may result in a hard inquiry. 

Once approved, some cards report ongoing activity to personal credit bureaus, while others do not. Paying on time and keeping balances low is the best way to protect both your business and personal credit.

TL;DR: Find the Right Business Card for You 

Choosing a business credit card isn’t just about perks. It’s about finding the right fit for how you spend and where your business is headed. 

Start with your expenses, pick rewards that match your workflow, and pay attention to the fine print. 

The right card can simplify your finances, unlock valuable benefits, and most importantly, support your business’s long-term growth.

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.