Business Credit Cards

Comparing Business Credit Card Offers

Updated: January 20, 2020

If you’re a small business owner, you probably don’t have time to sort through a laundry list of business cards and complicated rewards schemes. But if you’re looking for the right card for your business in 2020 and beyond, it pays to sweat the details.

A good business card can help you invest more in your company, smooth out fluctuations in your monthly cash flow and build a better credit score for your business. It can also help you organize your expenses and monitor your employees’ spending.

Even better, many of the best business credit cards nowadays come packed with generous rewards that help you trim expenses and enjoy exclusive benefits. Here, we look at:

• What are the best business credit cards?
• Summary of the best business credit card offers
• Research methodology
• How business credit cards work
• How to choose the best card
• How to compare business credit cards
• How to apply for a business credit card
• Tips for using and managing a business credit card
• Building business credit
• What is a good credit rating for a business?
• Business credit cards vs. business charge cards
• Major business programs

Whether you want to understand more about how to properly use a business card or how to build business credit, we can help.

Best Business Credit Cards

Ink Business Unlimited^SM Credit Card

Why it’s the best business credit card for boosted rewards

Not only will you earn unlimited 1.5% cash back on every purchase, you can also transfer your rewards to a qualifying Chase Ultimate Rewards card and boost their value by 25% when you redeem for travel.

Pros

Even with no annual fee, the Ink Business Unlimited has a nice sign-up bonus of $500 after a $3,000 spend within the first 3 months of card membership. You can also get a 0% intro APR for 12 months on purchases – it’s 14.74%-20.74% variable after that.

Cons

At 1.5% back on all purchases, you can get better rewards on everyday business expenses with The Blue Business Plus. Also, there’s no 0% intro APR for balance transfers.

Capital One® Spark® Cash for Business

Why it’s the best business credit card for flat-rate cash back

It’s a great combination of value and simplicity: You’ll earn unlimited 2% back on all purchases without tracking spending, transferring rewards or juggling bonus categories.

Pros

For a limited time you can earn a huge sign-up bonus up to $2,000: $500 for spending $5,000 in the first 3 months and an additional $1,500 for spending $50,000 in the first 6 months of opening your account. This is accompanied by very strong rewards of 2% unlimited cash back on all your purchases, which could add up to huge savings for any business.

Cons

There is a $95 annual fee, but it is waived the first year. Also, the regular APR of 18.49% (variable) is relatively high.

Our expert’s favorite business credit card: “I’d go with Capital One Spark Cash for Business,” says our industry analyst, Ted Rossman. “I think simplicity and cash back have universal appeal. That card’s flat 2% cash back rate on all purchases should be a good fit for a wide variety of businesses. The sign-up bonus is worth up to $2,000, there are no foreign transaction fees, you can get free employee cards and the $95 annual fee is waived the first year.”

American Express® Blue Business Cash Card

Why it’s the best business credit card for no annual fee

Not many business cards let you earn cash back at such a high rate on all purchases without paying an annual fee.

Pros

This flat-rate cash back card offers some unique features, such as the possibility of spending beyond your credit limit and even earning cash back in those cases. Also, with enrollment, you can get your vendors paid upfront, then make payments for up to 90 days. The cash back on this product is also pretty good, although there’s a cap on the 2% cash back offer of $50,000 each calendar year.

Cons

While this card, basically a revamped Simply Cash Plus, offers 0% intro APR on balance transfers for 12 months, followed by a 14.74% – 20.74% variable rate afterwards, you can do better with BT offers and purchase offers through many consumer cards. Also, there’s no welcome bonus with the Blue Business Cash.

Ink Business Cash^SM Credit Card

Why it’s the best business credit card for cash back on office supplies

It’s one of the only cards that includes a bonus on office supply spending, offering 5% cash back on your first $25,000 in combined purchases at office supply stores, as well as internet, cable and phone services each anniversary year.

Pros

This card has a sign-up bonus of $500 after a $3,000 spend within the first 3 months of card membership. Also, the tiered categories offer excellent variety.

Cons

After your first $25,000 in combined bonus category purchases, you’ll only earn 1% cash back.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card

Why it’s the best business credit card for consumer choice cash back

Not only will you earn 2% cash back on dining, you’ll be able to choose one of 6 practical spending categories in which to earn 3% cash back: gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. The 3% and 2% cash back apply on the first $50,000 in combined purchases each calendar year; it’s 1% thereafter.

Pros

The card offers an online statement credit bonus of $300 after you spend $3,000 in net purchases within the first 90 days. Plus, you could earn a bonus of 25%-75% on your rewards based on your Bank of America Preferred Rewards tier.

Cons

Larger businesses may want to look at business credit cards such as the Ink Business Preferred that offer higher sign-up bonuses.

Discover it® Business Card

Why it’s the best business credit card for tracking business expenses

While many business cards offer tracking for business expenses, the Discover it Business is a standout, allowing you to download transactions easily to Quicken, QuickBooks, and Excel.

Pros

Not only will you earn unlimited 1.5% cash back on all purchases without paying an annual fee, the card’s 0% introductory APR on purchases for the first 12 months (14.49%-22.49% variable thereafter) will help you hit the ground running. Also, Discover’s first-year Cashback Match has no minimum spend requirement, and it could easily beat out other cards’ intro bonuses if you spend heavily.

Cons

It is easy to find a card in this category with a more generous rewards rate. Also, as a business owner, you many not want to wait until the end of the first year to collect the Cashback Match.

Capital One® Spark® Miles for Business

Why it’s the best business credit card for business travel

Not only will you earn unlimited 2X miles on all purchases, you can earn 5X miles on hotels and rental cars if you book through Capital One Travel^SM, making this card a great choice for business people on the go.

Pros

This is great if you are looking for bonus miles – it currently has a limited time offer of up to 200,000 bonus miles: Earn 50,000 miles for spending $5,000 in the first 3 months and an additional 150,000 for spending $50,000 in the first 6 months of opening your account. The full sign-up bonus is worth up to $2,000 when redeemed for travel. There is no foreign transaction fee, which makes it a suitable card for international business trips. You’ll earn 2 miles per dollar on every purchase, up to an unlimited amount of miles.

Cons

There’s a $95 annual fee (although it is waived the first year) and the regular APR is a relatively high variable 18.49%, making it not a good choice if you plan to carry a balance.

Capital One® Spark® Cash Select for Business

Why it’s the best business credit card for no expiration on rewards

Your rewards won’t expire for the life of the account, and you can set up automatic redemption and redeem cash back in any amount, anytime.

Pros

This card’s 1.5% cash back on all purchases rivals that of the Ink Business Unlimited, and it has no annual fee. Also, the cash back is unlimited, unlike the Ink Business Cash and the Ink Business Preferred.

Cons

The Capital One Spark Cash Select’s sign-up bonus is only $200 after a $3,000 spending within the first 3 months, $300 less than the Ink Business Unlimited’s sign-up bonus, which is $500 after a $3,000 spend within the first 3 months.

Ink Business Preferred^SM Credit Card

Why it’s the best business credit card for sign-up bonus

A hefty sign-up bonus of 80,000 points after a $5,000 spend within the first 3 months makes this a stellar business card. And those 80,000 points are worth $1,000 toward travel when you book through Chase Ultimate Rewards.

Pros

If your business spending lines up with this card’s bonus categories, you could really rack up rewards: You’ll earn 3X points on all travel, shipping, internet, cable, phone services and advertising purchases with social media and search engines on your first $150,000 in combined purchases each year.

Cons

Unfortunately, the $95 annual fee is not waived, something you’ll want to factor in when considering this card.

The Blue Business® Plus Credit Card from American Express

Why it’s the best business credit card for a long 0% APR period

The card offers a 0% introductory APR on both new purchases and balance transfers for 12 months (14.74%-20.74% variable thereafter), making it useful whether you need to pay down debt or finance a large purchase.

Pros

This card allows you to earn 2X points for up to $50,000 a year on business expenses like office supplies and client dinners, and 1 point per dollar thereafter. Also, the Blue Business Plus allows trusted partners or employees to manage your account and allows you to add receipts and notes to your transactions.

Cons

There’s a limit to how much you can earn with 2X points, up to $50,000. Also, there’s no introductory bonus.

Summary of the best business credit cards of 2020:

*6 possible choices include gas stations (default), office supply stores, travel, TV/telecom and wireless, computer services, business consulting services; cash back rate of 3% on this choice category and 2% on dining apply on the first $50,000 in combined purchases per calendar year, 1% thereafter
**Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
***Up to $150,000 annually, then 1 point per dollar

Research methodology: what we considered

Business credit cards analyzed: 368

Criteria used: Rewards categories, rewards rates, redemption options and flexibility, sign-up bonus, customer service, small business perks, annual fee, other rates and fees, security, credit needed, ease of application

Of the 368 business credit cards we analyzed, we hand-picked 40 cards for in-depth individual reviews. Some 28 out of these 40 business cards in our reviews database include a points- or miles-based rewards program – 4 for airline miles, 3 for hotel points, and 21 are general rewards cards. Cash back cards constitute 12 out of the 40 business credit cards.

As far as bonus categories for spending go, “travel and transportation” is by far the most common bonus category among the cards in our review set, with 17 of 40. Flat-rate rewards cards are also very common, constituting 13 out of the 40 cards in our review set.

How business credit cards work

Business credit cards are simply credit cards designed for business use rather than personal use. While business credit cards function almost exactly like personal credit cards, they are unique in a few ways.

One major difference to keep in mind is that many small business credit card issuers report your business credit activity to both consumer and commercial credit bureaus. Additionally, unlike consumer cards, business credit cards aren’t protected under the Credit CARD Act of 2009. This means that consumer protections technically don’t apply to business cards, so your APR could change without notice or you could be charged high fees for minor infractions.

Business cards also tend to come with higher credit limits than personal cards and are more likely to offer rewards in business-related spending categories, like office supplies and phone and internet expenses.

Business credit cards are often used to build a company’s credit history, improve its cashflow and keep business expenses separate from personal charges. They can help you organize expenses, earn rewards and save on interest payments, so even if your business’s spending is modest, choosing the right business credit card can save you large sums of money each fiscal year.

How to choose the best credit card for your business

Credit cards are among the most popular forms of credit for business owners – in fact, it is the most popular among those not applying for a line of credit. Some 47% say they regularly use cards (up from 44%), with the second most common being a loan or line of credit at 42%, according to the Federal Reserve’s 2019 Small Business Credit Survey.

There’s no one-size-fits-all business credit card. Businesses’ credit needs can vary greatly, and business credit cards vary along with those needs. “Choosing the right business credit card depends on what you’re looking for (cash back, free travel, low interest, etc.),” says Ted Rossman, our industry analyst. “There are lucrative sign-up bonuses to be had, and rewards on spending categories tailored for businesses (such as travel, technology, internet, phone, shipping and online advertising purchases).” Here’s what you need to consider in choosing the best card for your needs:

Can you get a business credit card without a personal guarantee?

While business credit cards that don’t require a personal guarantee do exist, they often carry a number of other requirements and limitations. In place of a personal guarantee, you may have to put up business assets as collateral or prove that your company has millions of dollars in revenue or cash reserves.

If you’d rather avoid a personal guarantee, one option is the Brex Corporate Card for Startups. Not only is no personal guarantee required to be approved for the card, you don’t even need to go through a personal credit check. Instead, you supply your EIN and link your corporate bank account to the card as a security deposit (you’ll need at least $100,000 in your corporate account to qualify for the card). Brex then sets credit limits dynamically based on the amount of capital you’ve raised, equity in your company and your company’s spending patterns.

What types of rewards are you interested in?

The next step is to figure out your preference for rewards. With fiscal year 2020 underway, you should think about what the year holds in terms of business spending. Will you be buying office furniture? What about jumping into online advertising?

• Do you or your employees travel often for business, and are you loyal to a particular airline or hotel? You might consider signing up for a co-branded airline or hotel card, which can be extremely rewarding for dedicated customers.
• Or, if you want more flexible redemption options, you might consider a flexible points card, such as the Chase Ink Business Preferred card.
• If you’re looking for simplicity, a cash back card is probably your best bet – you can redeem your cash back as statement credit or have it deposited into a bank account without having to worry about how to use rewards points.

What types of spending do you do?

Once you’ve settled on the type of rewards that you prefer, you should look at how your business allocates its spending, to decide which card will be most rewarding for you:

• If you spend a lot at office supply stores, you might look at Ink Business Cash, which offers 5% on the first $25,000 spent at office supply stores and internet.
• If you host a lot of client lunches, you might look at a card like the Bank of America Business Advantage Cash Rewards Mastercard, with 2% back at restaurants.
• If you travel often, you should look at a card like The Business Platinum Card from American Express, which offers 5X points on flights and prepaid hotels on amextravel.com.
• Or, you may earn a higher rewards rate by choosing a flat-rate card that offers the same rewards rate on every purchase, such as the Capital One Spark Cash for Business. You’ll need to do the math to decide.

How to compare two business credit cards

Here, we dive a little deeper, comparing the Capital One Spark Cash with the Chase Ink Business Cash. First, we look at rewards value, then at other features.

Comparing rewards values

Your first step is to calculate the rewards value for the two cards. Basically, you need to estimate how much you’re likely to spend in each of the card’s bonus categories over the year, multiply that amount by the rewards value (don’t forget to figure in the value of points if it’s a points or miles card), add in the sign-up bonus and subtract the annual fee. You should use the following formula:

Rewards value = (Spend in category 1 x Rewards rate x Point value) + (Spend in category 2 x Rewards rate x Point value), etc. + Sign-up bonus – Annual fee

For example, in the following table we calculate the rewards earnings for a cardholder who spends $48,000 on a card in a year with the Chase Ink Business Cash, with 6 percent of their spending allocated to office supplies, internet, cable and phone services ($2,880); 12 percent to dining out ($5,280); 11 percent to gas station purchases ($5,760); and 71 percent to other types of purchases ($34,080).

For this particular cardholder, the Capital One Spark Cash card – though it doesn’t offer any bonus categories — comes out ahead, thanks to its high rate of 2 percent cash back on every purchase:

Rewards value in the first year ($48,000 spend)

Capital One Spark Cash	Chase Ink Business Cash
2% x $48,000 + $500 sign-up bonus – $0 annual fee (waived first year) = $1,460	(5% x $2,880) + (2% x $5,280) + (2% x $5,760) + (1% x $34,080) + $500 sign-up bonus – $0 annual fee = $1,205.60

Over the long term, the Capital One Spark Cash card proves to be the better value. Even when we add in the annual fee in the second year, our model cardholder still earns a larger amount of cash back with the Capital One Spark Cash card:

Rewards value in the second year ($48,000 spend)

Capital One Spark Cash	Chase Ink Business Cash
2% x $48,000 – $95 annual fee = $865	(5% x $2,880) + (2% x $5,280) + (2% x $5,760) + (1% x $34,080) – $0 annual fee = $705.60

Comparing other features

You should also take a look at the cards’ other features before you decide which one to go with. For instance, you need to consider how easy it is to earn and redeem rewards with the cards.

The Capital One Spark Cash card and the Chase Ink Business Cash card are both simple, flexible cards, but the Capital One Spark Cash card comes out ahead in redemption flexibility. Unlike the Chase Ink Business Cash card, the Capital One Spark Cash card doesn’t set any limits on the cash back that you can earn and there is no minimum threshold to redeem your cash back. You can redeem any amount at any time, and you can even set your account to automatically redeem your cash back, once it reaches a certain amount:

Comparing redemption flexibility

Capital One Spark Cash	Chase Ink Business Cash
Do my rewards expire for the life of the account? No Redemption options: Cash back, gift cards, donations Limits on cash back? No Minimum redemption amount: Redeem any amount of cash back at any time (and set thresholds to automatically redeem your cash back)	Do awards expire? No Redemption options: Cash back, travel, gift cards, Amazon points, experiences Limits on cash back? $25,000 purchase limit for each bonus category Minimum redemption amount: $20

When you look at the cards’ features, you can see that the Chase Ink Business Cash card, while it does have similar account management features to the Capital One Spark Cash card, doesn’t have the same depth of travel and purchase protections. Of course, the Capital One Spark Cash card comes with a $95 annual fee. Basically, you’re paying a premium for all the extra features:

Comparing benefits

Capital One Spark Cash

Chase Ink Business Cash

No fee for employee cards Quarterly and year-end summaries Mobile app sends you alerts and helps you manage spending on the go Integrates with QuickBooks, Quicken and Excel Discounts on business purchases with Visa SavingsEdge No foreign transaction fees Purchase protection Extended warranty Price protection Car rental insurance Lost luggage reimbursement Travel accident insurance Travel and emergency assistance Roadside dispatch VIP access and special events Emergency card services

No fee for employee cards Set individual limits on employee cards Mobile app sends you alerts and lets you snap and tag receipts on the go Purchase protection Extended warranty Car rental insurance Travel and emergency assistance

As you can see from our example, a card with an annual fee can often be a great value, depending on your spending habits and whether you’re likely to use all the features. But who says you have to choose just one business rewards card? Signing up for multiple rewards cards and juggling them to earn extra points in the cards’ bonus categories can be a great way to maximize your rewards.

How to apply for a business credit card

You may assume that you have to be the owner of a business with multiple employees and an office or store front to apply for a business credit card, but that simply isn’t true. Anyone who owns a side business – such as baby-sitting, yard maintenance, blogging or consulting – that makes money (or possibly doesn’t even have an income yet) can potentially qualify for a business card.

Here’s what you’ll be asked for when you apply:

• An EIN or SSN
  You’ll need to supply your EIN – the number issued by the IRS to people who have a business located in the United States or U.S. territories. If you’re an individual proprietor without an EIN, you can use your Social Security number instead to apply.
• Your business information
  You’ll need to supply some basic information about your business: The name of your business (or your personal name, if you’re a freelancer), the type of business (partnership, corporation or sole proprietorship), your role in the business, your business address and phone number, how long you’ve been in business, your number of employees, your annual business revenue and your estimated monthly spend.
• Your personal information
  You’ll need to include your personal details on the application as well, including name, address, contact information, Social Security number, birthdate, mother’s maiden name and household income.
• A personal guarantee
  Unless you own a substantially sized business (and sometimes even when you do), you’ll probably be asked to make a personal guarantee on your business credit card application, stating that you are personally responsible for repaying your card debt. This means that, if you stop making payments on the card because the business fails, the bank can come after you personally to recover the debt.

Having a well-established business, of course, helps your odds, but you may be able to qualify by just supplying the above information. Here are a few other things you can do to boost your chances of qualifying:

• Pay down debt
  Pay down your existing card debt about 30 days before applying for a new card.
• List all of your income
  When applying, be sure to list income before taxes, and include income such as pension, alimony and rental income.
• Build up your personal credit score first
  Having a good personal credit history is the main factor for getting accepted for a business credit card. If your credit score isn’t good, you need to work on building your personal credit before you apply.
• Be honest on your application
  Don’t make up fake revenue for your business hoping to push your application through. If the bank double checks on your application and finds your application isn’t accurate, you could get rejected.
• Start a relationship with the bank
  If you already have a relationship with the bank, you have a greater chance of getting accepted for one of their business cards. Start a checking account for your business with the bank and then try applying for one of their cards.

How to get the most out of a business credit card

A business credit card can be a powerful tool for increasing your purchasing power and building your business credit history, but it can also come with serious liabilities. Here are some tips to help you avoid the pitfalls:

Read your card’s terms and conditions

Since business cards aren’t regulated by the CARD Act, you should take a close look at your card’s terms and conditions and monitor any changes to terms and conditions that come in your email. Keep an eye out for changes in interest rates, due dates or fees.

Only use your card for business expenses

Don’t put your personal spending on your business credit card. Mingling your expenses makes it harder to track your business spending. Plus, it can make you personally liable if someone sues your company. Also, if you do happen to incur interest from carrying a balance on a business credit card, be sure to note it on your tax form – it counts as a business expense.

Track your spending carefully

Make 2020 the year to get a handle on business expenses. Use your credit card’s expense reporting features to keep close tabs on your spending. Look for opportunities to cut expenses. Keep in mind that business cards come with high credit limits – usually of $50,000 or higher – which makes them ideal for making large purchases. Some cards, such as the American Express Blue Business Cash Card, even allow you to exceed your credit limit when you need to make a large purchase.

Plan how you’ll pay

Figure out ahead of time what your cash flow is going to be through the month. See if you can negotiate your due date with your credit card issuer so that it falls on a date where you will have funds to pay off your balance. Make large purchases right after your statement closes so you have plenty of time to repay the balance.

Make sure you have a plan in place to repay the amount that you borrow against your credit line, so you can pay it off quickly and avoid high interest fees, penalties or possibly incurring a debt you can’t afford to repay. Avoid carrying a balance past the due date if you can, since the interest can be very costly.

Find new ways to earn and save

Many business credit cards include programs such as VisaSavings Edge, Mastercard Easy Savings and American Express that give you a small discount with a select list of merchants. The number and variety of merchants vary greatly by program. You can get significant savings if you happen to shop frequently with a merchant.

Also, you can use online shopping portals such as Ebates and Swagbucks to earn extra cash back on top of your card rewards. You can also earn bonus rewards through an issuer’s shopping portal, such as the Chase Ultimate Rewards mall.

Take advantage of business discounts

Many business credit cards include programs – such as VisaSavings Edge, Mastercard Easy Savings and American Express – that give you a small discount with a select list of merchants. The number and variety of merchants varies greatly by program. You can get a significant savings if you happen to shop frequently with a merchant.

Manage employees’ cards

Business credit frequently allows you to issue cards from your account to your employees – usually for free, but sometimes for a fee – and to set up individual limits for each card along with account alerts to help you keep a close eye on your employees’ card use. If you or your employees do a lot of traveling for your business, you may be able to make good use of the travel protections that frequently come on business credit cards. Travel protections often include trip cancellation insurance, travel accident trip delay insurance, insurance for lost and delayed baggage and car rental insurance.

Use your account management features

Take advantage of all the features your issuer offers to simplify your account management. Set up automatic alerts for your card and your employees’ cards, set up autopay to make sure you meet your payment due date and link your account to your accounting software so you can easily download all your expenses. Most business credit cards come with expense-tracking features, such as apps that allow you to snap photos of your receipts and file them on the go, spending reports, yearly summaries and the ability to designate an account manager to manage it all for you.

How do you build business credit?

To build a credit history for your business, you need to establish that your business is a separate entity from yourself and take steps to make sure that your business’ spending activity is being tracked by business credit bureaus. Here are some steps you can take to create a credit history for your business:

Start a business checking account

A checking account will help you establish your business as a financial entity. Be sure to use it responsibly – keep an adequate balance in it and don’t bounce checks.

Make sure your business is on the credit reporting radar

Register for a DUN number through Dun and Bradstreet to establish a credit history with them. For Experian and Equifax, establish a LLC so you can get an EIN and set up a phone line with a listed number.

Use D&B Credit Builder

If some of your vendor accounts are not making it onto your credit report, you can use D&B’s Credit Builder service to provide positive payment information to your credit report. You can provide D&B with your vendors contact information, then D&B will contact them to verify your payment history.

Strengthen your personal credit history

Unlikely though it may seem, building your personal credit score is one of the first steps to building a credit history for your business. A good personal credit score can help you acquire your first lines of business credit. Also, your personal credit history will likely be considered down the line along with your business credit history when you apply for additional loans.

Apply for a small business credit card

Before you’ve built up your business credit history, you can use your personal credit history to qualify for a business credit card. Your activity on the card should be reported to all the business credit bureaus. Use it often and be sure to pay your bill on time and in full each month.

Streamline your invoicing

So you make your own payments on time (and minimize your need for cash flow), make sure your own customers are paying you in a timely manner. Send out your invoices as soon as a service is performed and encourage your customers to pay on time.

Ask for a credit line increase

Request credit line increases on your existing accounts – this will improve your credit-to-debt ratio and thus your overall credit score.

What is a good credit rating for a business?

Credit scoring for businesses is a bit different (and more complicated) than scoring for consumers. Personal FICO scores range from 300 to 850 while business credit scores use different scales. There are three primary business credit score bureaus and they all structure their ratings differently.

You can find your business credit score by visiting the Dun & Bradstreet, Equifax and Experian websites. You can check your business credit history at no cost, but you will have to pay a fee to see your credit scores. Here’s how the 3 business credit bureaus score:

Dun & Bradstreet offers three scores in its credit report:

• Paydex score – An indicator of the timeliness of your payments. The score ranges from zero to 100. A score above 80 indicates payments made within terms.
• Commercial credit score – Shows the likelihood of a severe delinquency on your bills in the next year. The score ranges from 101 to 670, with a lower score representing a higher probability of a delinquency. A score above 450 is good and above 482 is excellent.
• Financial stress score – Predicts the likelihood of your business failing within the next year. With a range of 1,001-1,875, above 1509 is good and above 1570 is excellent.

Equifax offers four scores in its credit report:

• Credit information – Measures your delinquency risk based on positive and negative information in your credit file. The score ranges from 20 to 70, with lower scores being better.
• Payment index – Shows the timeliness of your payments to vendors and creditors. The score ranges from zero to 99. A score lower than 30 (i.e., your payments are usually made in the first 30 days) is best.
• Commercial delinquency score – Shows the likelihood of a severe delinquency on your bills in the next year. The score ranges from 101 to 992. A higher score is better.
• Business failure score – Predicts the likelihood of your business failing in the next year. The score ranges from 1,000 to 1,610. A higher score is better.

Experian offers a single score in its credit report:

• Business credit score – A comprehensive rating of your creditworthiness, based on your credit history, including balances and outstanding loans, payment habits, whether you have any liens against you, judgments or bankruptcies against your business and the size and age of your business. The score ranges from zero to 100. A score higher than 50 is good.

Heads up that business credit cards typically aren’t recorded on your personal credit report unless your account becomes seriously delinquent – but it depends on the issuer. Capital One, for instance, does report all the activity on your business cards to consumer credit bureaus, but Bank of America does not.

A business credit card can substantially boost your business credit history. By putting small charges on your card each month and paying them off, you can create a record of timely payments for your business. Keep in mind that if your business fails and you end up with a credit card balance you can’t pay off, you might be personally responsible for paying your business credit card off.

Can you get a business credit card with fair credit?

Though most business credit cards require good to excellent credit, there are a small number of business cards available for people with fair credit. These cards usually lack the hefty sign-up bonuses and travel perks of other business cards, but they can be useful as stepping stones to better credit and more lucrative business rewards cards down the line.

Currently, your best bet is the Capital One^® Spark^® Classic for Business, a flat-rate cash back card offering 1% cash back on every purchase. While the card has its shortcomings, including a variable APR of 24.49%, which is much higher than that of the average business card, it comes with a number of useful business perks.

Read up on business credit scores to understand how to build your business credit.

You may also consider paying for business expenses with a consumer card designed for people with fair credit.

Business credit cards vs. business charge cards

Business credit cards and business charge cards are very similar to one another – you can use either type of card to make purchases against a line of credit, which has to be paid either partially or in full by the end of the month, depending on the type of card. Here are key differences between the two:

• Credit cards have a preset spending limit, which you are not allowed to go over without being penalized or having your card declined.
• Charge cards don’t have a preset spending limit. This gives businesses the flexibility to make a large purchase without having to request a credit increase. (Issuers may still impose an overall cap on how much you spend, however.)
• Credit cards allow you to carry a balance month to month. You are charged interest on your balance if you don’t pay it in full starting from the end of your grace period, and you could owe a penalty if you don’t make a minimum payment on your balance.
• You will be penalized sharply if you don’t pay off the bill on your charge card at the end of the month – around 3% of the total balance. Also, your issuer may suspend your credit.

A charge card may be the better way to go for your business, since they offer more spending flexibility and they have less impact on your credit score, because there isn’t a debt-to-credit ratio. However, they can also be more difficult to qualify for. A business credit card may be the better option if you need a card with a lower barrier to entry and also if there’s a possibility you might carry a balance from month to month.

Major business programs

Whether you are on the watch for business loans or travel business cards, the major banks’ business programs are worth a look.

Chase

Chase features an array of among the most robust business products through its cards, loans, banking, and merchant services.

The 3 Chase Ink cards are the stars of the Chase business products, with bonus points or cash back and rich ongoing rewards. Rewards can be used toward cash back, travel, gift cards, and so on. There are also partner small-business cards with such airlines as Southwest and United, both with bonuses and ongoing points or miles. For example, Southwest Rapid Rewards Premier Business Credit Card offers 6,000 points every anniversary.

Also offered are checking, merchant services and business lending. Available products, depending on your area, include Chase Total, Chase Performance and Chase Platinum. You can earn $200 back with qualifying activities. Not only does Chase make sure you can accept payments online, through mobile and everything in between, but the bank also offers the latest in security. Business lending offerings include business lines of credit, business term loans, SBA financing, commercial real estate financing and equipment financing.

American Express

Small business and corporate cards abound with this brand, allowing you to earn rewards both from your own expenses and those of your employees. Manage expenses with the American Express® Business App and sync transactions with Connect to QuickBooks.

There are also funding opportunities for cardmembers and merchants that accept the cards. For example, get merchant financing with fixed-fee, no-interest loans with funding up to $2 million. You can also request funding to pay vendors through Working Capital Terms, and get approved for collateral-free funding within minutes at fixed rates for up to $50,000.

Capital One

The small business options are endless with Capital One. There’s Business Unlimited or Basic Checking; Business Advantage Savings; commercial real estate loans and more. There’s also Escrow Express, 401(k) solutions for your business and, of course, cards.

The Spark cards offer a host of travel and purchase benefits, including purchase security; extended protection; save up to 15% at participating merchants through Visa SavingsEdge; travel and emergency assistance; and auto rental collision damage waiver. Also get a quarterly and year-end summary; employee cards at no additional cost; downloadable purchase records; and no foreign transaction fees.

Bank of America Business Advantage

Business Advantage offers a plethora of business tools and options, including checking; credit cards; merchant services; and Merrill Edge for business and personal retirement planning.

There are 5 business credit cards with this bank, including 3 travel business cards and a cash rewards card. You can earn a statement credit, cash back, points, or get a rock bottom variable APR for your balance transfers. For example, the Business Advantage Travel Rewards Mastercard offers 25,000 bonus points (when you spend $1,000 in net purchases within 60 days of your account opening).

BofA offers merchant services by partnering with the Clover suite of point-of-sales devices. A wide variety of Clover point of sale products are available, such as Clover Go for food trucks, farmer’s markets and other businesses without a storefront, or Clover Station for merchants who need business management solutions in addition to payment processing such as restaurants and retail.

More in-depth reviews

Our business credit card reviews can help you compare offers to find the one that best suits your needs.

Robin Ratcliff is the managing editor for reviews on CreditCards.com. Before CreditCards.com, she worked as an analyst and editor, and still brings that same analytical rigor to her card recommendations today. You can reach Robin at robin.ratcliff@creditcards.com.
Tracy Brackman is a credit card news editor at CreditCards.com, writing breaking news stories on card updates and new card launches. You can reach Tracy at editors@creditcards.com.
Laura Mohammad is an editor and writer at CreditCards.com. She regularly covers the best credit cards and works to bring you the most up-to-date analysis and advice. You can reach Laura at laura.mohammad@creditcards.com.