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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Corporate Credit Cards: How They Work, and Differences vs. Business Cards

Updated on:
Content was accurate at the time of publication.
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While small business credit cards typically require a personal guarantee, corporate credit cards do not. However, corporate credit cards are only intended for large businesses, and usually require your business to have an annual revenue of over $4 million.

Corporate cards are less risky for individual cardholders, since responsibility for debt is tied to the company the card is issued to (and possibly employee cardholders who make unauthorized purchases) — not any one individual.

That said, you should only get a corporate credit card if you are a major corporation who can easily meet the eligibility requirements for a corporate card. All other business owners should opt for a business credit card, which is largely the same, but requires a personal guarantee.

On this page

Corporate credit cards vs. business credit cards

Business credit cardsCorporate credit cards
EligibilityAvailable for all types of businesses, including freelancers and sole proprietorsOnly available to corporations:
  • C-Corp
  • S-Corp
  • Select LLCs
Personal guarantee required
Set spending limits for employee cards
Expense tracking and accounting toolsBasicAdvanced
Offers rewards on spendingRewards are intended to reinvest in business
Offers business perks and benefits

What are corporate credit cards and how do they work?

Corporate credit cards are designed for companies with numerous employees and enormous annual revenue, usually requiring a minimum of $4 million. These cards anticipate a high number of authorized users and don’t require a personal guarantee, meaning that if the company goes under, no single individual is responsible for debt accrued; instead, it’s on the business itself.

ProsCons

  No personal guarantee required

  Earn rewards on spending

  Can issue company cards to many employees and set spending limits

  Access to advanced accounting tools to keep track of spending

  Easier for employers and employees to manage company spending

  Stringent eligibility requirements

  Only available for large corporations

  Employees don't earn personal rewards on their spending

  Positive business credit history required for approval

  Can potentially have a negative impact on your credit score

Stricter eligibility requirements

A major difference between small business credit cards and corporate credit cards is that anyone can apply for a small business card, while corporate credit cards have much more stringent eligibility requirements.

Corporate credit cards are best for corporations:

  • With an annual revenue of at least $4 million
  • With a high number of employees to spend on company credit cards
  • Who can meet the strict eligibility requirements
  • Can often benefit from these types of cards

For example, corporate credit cards can only be acquired by S-Corporations, C-corporations and LLCs with a pre-established business credit score. You’ll also typically need to have a certain amount of employees, and a high annual revenue, as we mentioned previously.

Analytics tools

Corporate credit cards are often equipped with powerful analytics tools that allow company accountants and managers to keep a better grasp of where money is being spent. Banks such as Capital One or American Express allow their business clients to set up different tracking options — whether it be by department or different vendors. Having this level of control is also important when it comes to reconciliation and reimbursement.

Because corporate credit cards are often issued to a large number of employees, keeping track of the different spending can become difficult. As your company grows and expands, corporate credit cards are designed to scale with it, making sure your company doesn’t lose any control of its expenditures.

Rewards geared for large corporations

Much like with business credit cards, corporate credit cards often earn rebates and rewards on their spending, in the form of cash back, points or miles, and can come with perks like airport lounge access, Global Entry and TSA Precheck credits and more.

These rewards, however, are typically credited back to the main company account. Most issuers also offer non-rewards options, specifically meant for large companies and nonprofits (with revenue of more than $10 million) that have internal corporate policies preventing them from taking in this kind of revenue or price reduction benefits.

How does a corporate credit card impact your credit score?

Much like with a personal or small business credit card, the responsible use of corporate credit cards by a corporation will positively affect the credit score of the business. This means paying the balance of all company-issued cards in full and on time each month. Failure to do so will result in a negative impact on a business’s credit score.

However, if you are an employee about to be issued a corporate credit card, some issuers may run a credit check against your personal history. This hard pull on your credit history will have a temporary impact on your FICO score, though it is minimal. However, late payments and delinquencies on the company’s side will not negatively impact your credit score. As an employee, it’s important to follow your company’s policy on spending on company cards and never use a corporate credit card for personal expenses to avoid running into trouble.

What are business credit cards and how do they work?

Business credit cards allow small business owners and their authorized users to charge all their business expenses to a business account. The primary difference between business credit cards and corporate credit cards is that business credit cards typically require a personal guarantee, meaning the business owner is personally responsible for all expenses charged to their card.

ProsCons

  Easy way to track and limit employee spending

  Earn rewards on spending

  Higher credit limits than personal credit cards

  Keeping business and personal expenses separate

  Responsible use improves business credit score

  Access to account management tools

  Usually requires a personal guarantee

  High interest rates and late fees

  Misuse can have a negative impact on your credit score

The most rewarding business credit cards offer rewards and benefits to their cardholders, much like personal credit cards. However, business credit card rewards tend to be more lucrative and credit limits are typically higher than personal credit cards because businesses generally spend more. Many business credit cards offer valuable business perks like free employee cards, for which you can set spending limits and earn rewards on card spending. You may also receive access to helpful accounting tools and resources that will help you stay on top of your financials. While corporate credit cards have strict eligibility rules, business credit cards are available for any type of business, including:

  • Freelancers
  • Small business owners
  • Sole proprietors

Business credit cards are best for small businesses owners:

  • Who want to keep their personal and business expenses separate
  • With several employees who need access to company funds
  • Who are interested in earning rewards on their spending
  • Who are willing to give a personal guarantee

In order to be approved for a business credit card, you’ll typically have to undergo a credit check and proof of business ownership.

What are the best business credit cards?

There are numerous business credit cards available for small business owners. The best small business cards will provide strong rewards and business perks that can be valuable for your company.

Best for rewards: Ink Business Preferred® Credit Card

The Ink Business Preferred® Credit Card is excellent for businesses who value earning rewards on their spending, and who can appreciate a generous sign-up bonus: Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. Cardholders can also 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.

You also have a variety of flexible redemption options, including transferring your points to a Chase travel partner to increase their value through Chase Ultimate Rewards®.

Best for 0% intro APR: The American Express Blue Business Cash™ Card

The American Express Blue Business Cash™ Card has a lot to offer small business owners, including a nice 0% interest offer: Intro APR of 0% on purchases for 12 months from date of account opening. After that, the APR is 17.74% - 25.74% Variable. Plus, Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1% (redeemable for statement credits), all for No annual fee.

The cash back earned with this card is automatically credited to your account statement, making redeeming your rewards easier than ever.

*To see rates & fees for The American Express Blue Business Cash™ Card, please click here.

Best for hotel points: The Hilton Honors American Express Business Card

For small business owners who travel frequently for work, The Hilton Honors American Express Business Card can be extremely lucrative. With a moderate annual fee of $195, cardholders will receive complimentary Hilton Honors Gold status with the opportunity to earn Diamond status when they spend $40,000 on eligible purchases in a calendar year (enrollment required).

You’ll also get a suite of purchase and travel protections, free employee cards, free weekend night rewards with Hilton, a Priority Pass™ Select membership (enrollment required) and more.

*To see rates & fees for The Hilton Honors American Express Business Card, please click here.

The information related to Ink Business Preferred® Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

*To see rates & fees for The American Express Blue Business Cash™ Card, please click here.
*To see rates & fees for The Hilton Honors American Express Business Card, please click here.

Whether or not your business credit card will affect your personal credit will depend on if your specific card reports to consumer credit bureaus. If it does not report to consumer credit bureaus, your business credit card activity should not affect your personal credit score. However, if it does report to consumer credit bureaus then it may affect your personal credit score.

Having a corporate credit card should not affect your personal credit, as corporate credit cards don’t require a personal guarantee. However, a corporate credit card can impact your business credit score. With responsible use, it can improve your business credit score and with misuse, it can harm your business credit score.

To see rates & fees for American Express cards mentioned on this page, visit the links provided below:

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.

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