Business Credit Cards: Definition, Strategies, and Success Stories

With a corporate credit card, the company is liable for any accrued debts or fees, whereas with a small business credit card, the primary cardholder is held responsible. Likewise, the company earns rewards from a corporate credit card, while the primary cardholder earns rewards from a small business credit card. Most corporate credit cards are reserved for larger companies and designed to be issued to at least 15 authorized cardholders (CEOs, managers, employees, etc.).

With Bluevine, you can get a fee-free business checking account―and you can even earn up to $5,000 in interest. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate.

What is a small business credit card?

«The lower your DTI, the less risky you appear to lenders because it indicates you have a good balance between debt and income,» Latham says. If you already have vendors that you work with, you might try reaching out to them to ensure they report to the credit business credit card definition bureaus. If they don’t or aren’t willing to start, you may want to consider opening accounts with new vendors who will. It is helpful, however, to have clear rules regarding who gets a card, whether it’s based on seniority, position, or other factors.

When you initially apply, the business owner is considered personally responsible for debt accrued by the business. Therefore, there will be a hard inquiry to your personal credit report. This is because the issuer needs to gauge your creditworthiness before qualifying you for a business credit card. If approved, a new business credit history and credit score are created and these become separate from your personal credit. Most business card issuers allow cardholders to order credit cards for employees, which is helpful for companies with a number of employees going to different places and spending on various orders for the company. In addition, business cards typically come with higher credit limits, greater rewards potential and tools to help manage spending.

A Comprehensive Guide to Establishing Business Credit

General-purpose travel credit cards are flexible options that don’t force you to stick with one hotel or airline brand. For example, with The Business Platinum Card® from American Express, you’ll earn 5 points per dollar on flights and prepaid hotels booked on amextravel.com. It will also earn 1.5 points per dollar on eligible purchases made in select business categories and purchases of $5,000 or more (on up to $2 million per calendar year). You must own an established business in order to qualify for a business credit card. You’ll likely need to provide your employer identification number, social security number, and other business information in order to apply. If so, you’ll enjoy many benefits that streamline day-to-day operations—but there are some downsides to be aware of too.