Whether you’re a freelancer, the owner of a startup or someone who runs a more established business, getting a small business credit card can help you manage your business’s finances and earn rewards. However, applying for a business card can be a bit different than applying for a consumer card. We’ll walk you through the steps of how to apply for a business credit card and help you evaluate some of the top business cards available as well.
Whether you operate an existing business with established revenue or you’re just starting a new business and have a reasonable expectation of revenue, you can apply for a business credit card. And “business” doesn’t have to mean a multimillion dollar enterprise — it can be as simple as selling handcrafts on Etsy, writing freelance articles for a website or doing yardwork for neighbors. In these examples, you’d likely apply for a business card as a sole proprietor, using your Social Security number. Just note that you do need a business of some sort; issuers don’t want you to apply for a business card if you have no actual business.
Here’s some information you may need to have handy when applying for a business card:
Though you might be able to apply without an EIN, having one can be helpful for your application. Nancy Parnella, director of the Barclays U.S. business credit card program, explains that having an EIN can allow for quicker approval of your application.
“Most business owners should have an EIN as it allows them to keep their personal and business finances separate,” Parnella says. “This is also advantageous when applying for a business credit card as it aids in verifying the business, which can expedite approval.”
Typically, a small business card requires a personal guarantee (meaning you’re personally responsible for what’s charged to the card) and a personal credit check. This means your personal credit score does matter when applying for a business credit card, and poor personal credit score is a reason you could be turned down for the business card you want.
For that reason, it’s wise to check your personal credit score before applying for a business card. You’re also entitled by law to one free copy of your credit report from each of the three consumer credit bureaus (Equifax, Experian and TransUnion) annually via annualcreditreport.com where you can check for and dispute any legitimate errors that may be dragging your score down. During the COVID-19 pandemic, the bureaus have offered free weekly credit reports, rather than just the one per year required by law.
Don’t despair if your personal credit leaves something to be desired, however. If you’ve been in business for some time and have built up a good business credit score, issuers may take that into account.
“The underwriting of a business card is fairly complex, and depending on the type of business and the card they are applying for, personal scores, business scores or both could be leveraged,” Parnella says. “We use a proprietary underwriting model at Barclays, which considers the size and complexity of the business, the type of business and the ownership structure to determine what combination of data is used for the decision. In [a situation where an applicant] has fair personal credit and excellent business credit, they could be considered for a card, but many other variables are considered before a final decision is made.”
If you’re turned down after applying for a mainstream business credit card, getting a secured business card might provide an opportunity to build up good business credit history. Know that you’ll have to pay a security deposit, and you may have to pay an annual fee as well.
Generally, a business credit card won’t appear on your personal credit report. Capital One and Discover are exceptions, as both report business card activity to the consumer credit bureaus. (Note that while most Capital One business cards will show up on your personal credit reports, the Capital One Spark Cash Plus doesn’t.)
However, if you are significantly late paying your business card bill — from any issuer — it’s likely to be reported to your personal credit report and can damage your personal credit score.
That’s because as was mentioned earlier, most small business credit cards require a personal guarantee, meaning you are the one ultimately responsible for making sure the card is paid up.
Here are a few questions to ask to help you evaluate the best type of card that will benefit your business most:
Based on our research of business cards available through LendingTree, as well as from top issuers, we’ve selected some of the best options for a variety of needs.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.
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The Ink Business Preferred® Credit Card lets you earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn. Plus, you can earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening..
There’s a $0 foreign transaction fee, so you can travel abroad without worrying about an extra charge being tacked on every time you use the card. The APR is reasonable at 20.74% - 25.74% variable.
You will have to pay a $95 annual fee for this card.
Who’s this card best for?
If you travel frequently for business and value flexibility in how you can use your credit card rewards, the Ink Business Preferred® Credit Card might be right for you. When booking travel through the Chase Ultimate Rewards® portal, you get 25% more value per point. Or, you can transfer points at a 1:1 rate to a variety of airline and hotel partners. This card requires excellent credit.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The American Express® Business Gold Card offers uniquely flexible rewards. Get 4X Membership Rewards® points on the 2 eligible categories where your business spent the most each month on the first $150,000 in combined purchases each calendar year (then 1X thereafter). Earn 3X Membership Rewards® points on flights and prepaid hotels booked on amextravel.com using your Business Gold Card. Earn up to $20 in statement credits monthly after you use the Business Gold Card for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores. This can be an annual savings of up to $240. Enrollment required. Terms apply. (from a list of eligible categories, and capped at $150,000 spent per year, after which you earn 1X). Plus, earn 100,000 Membership Rewards® points after you spend $15,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
If you need flexibility in how much you can spend, you’ll appreciate that this card has no preset spending limit. What you can spend adapts based on factors including your purchase, payment and credit history.
Do note that the card comes with a hefty $375 annual fee. However, you don’t have to worry about a foreign transaction fee because there is none.
Purchases can be either paid in full each billing cycle or you can carry a balance (for eligible transactions) using the Pay Over Time feature. In the latter case, a 18.99% - 27.99% variable APR applies.
Who’s this card best for?
If the categories in which your business spends tend to fluctuate from month to month, the American Express® Business Gold Card‘s adaptability will serve you well. Note that you’ll need good / excellent credit to have a good chance of approval when applying for the American Express® Business Gold Card. Categories eligible for the boosted rewards rate include airfare purchased directly from airlines and U.S. purchases on the following:
If your personal or business credit score is less than stellar, you might have trouble qualifying for some of the higher-end business credit cards. However, there are a couple options. Below is an unsecured business card meant for fair credit and a secured business card that might be a good fit for business owners with Poor / Fair credit, if you’re willing to submit $500 to $25,000 to the issuer as a security deposit.
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Capital One Spark Classic for Business is aimed at business owners with fair credit who are looking for a card that doesn’t require a deposit. Plus, it earns earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions. Plus, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel..
You don’t have to worry about a foreign transaction fee. Like other Capital One business credit cards, the Capital One Spark Classic for Business charges $0.
The annual fee is $0 and the APR is 29.99% (variable).
Who’s this card best for?
If you don’t want to tie up money in a deposit for a secured card, the Capital One Spark Classic for Business is probably your best option. It’s accessible if you have fair credit, so the requirements aren’t as stringent as many other business cards. True, you’ll earn a lower cash back rate than some cards offer, but it’s a solid choice if you don’t think you’ll qualify for more high-end cards.
You should have at least some kind of business income, or the expectation that you will earn business income, before applying. You don’t necessarily have to run a full-fledged business with a storefront and employees, however — something as simple as doing freelance work from time to time could allow you to qualify.
There isn’t a set amount of revenue your business must generate to qualify for a business credit card. It’s possible to get approved for a business card as a sole proprietor with relatively modest revenue, or even an estimate of expected revenue if your business is new and you don’t have numbers for a whole year yet.
The best practice is to keep business and personal expenses separate — use a business card for business expenses and a personal credit card for personal expenses. That way, if you ever need to produce records documenting your business expenses, they aren’t jumbled together with personal purchases.
If you run a business, whether it’s a big operation with several employees or just you selling products on eBay or Etsy, getting a business credit card is a smart move. It allows you to separate personal spending from business spending, makes it easier to track expenses and typically protects your finances better in cases of fraud than a debit card.
Yes, as a sole proprietor you can apply for a business credit card. Just note you can be denied for a variety of reasons, as with any credit card application.
In general, with charge cards you must pay off your card’s balance within a billing cycle, whereas a credit card allows you to roll over a balance from month to month. The benefit of a charge card is that you may have a flexible spending limit, whereas credit cards come with a set credit limit you typically can’t exceed.
In selecting the business cards recommended here, we evaluated rewards programs for a variety of different spending habits. We also weighed welcome offers and benefits such as free employee cards.
In one instance, a selection was made based on availability to applicants with Poor / Fair credit.
Finally, annual fees were considered. Those cards that charge an annual fee offer enough value in rewards and benefits that business owners in some situations will find them worthwhile despite the cost of the fee.
To see rates & fees for American Express cards mentioned on this page, visit the links provided below:
For Capital One products listed on this page, some of the above benefits are provided by third parties such as Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as certain terms, conditions, and exclusions apply.
The information related to the Capital One Spark Classic for Business has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
