You can redeem directly for travel at 1.25 cents per point through Chase or transfer to over a dozen loyalty programs including United, Southwest and Hyatt. Busy business owners will appreciate this card’s simple flat-rate rewards program which doesn’t require time to manage and optimize. Our editors are committed to bringing you unbiased ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the credit card methodology for the ratings below.
There are many more reasons that a business owner might choose to apply for a business credit card. It builds a credit profile and history for the business and can help track business spending. It also offers a revolving line of credit with which to pay for unexpected expenses or large purchases, and can help cover bills without the need for immediate cash on hand. The biggest pros of business credit cards are business-friendly rewards and perks, the chance to build business and personal credit, and higher initial bonuses than personal cards. The biggest cons of business credit cards are high interest rates, personal credit risks, and strict approval requirements.
Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money. Accuracy, independence and authority remain as key principles of our editorial guidelines. For further information about automated content on CreditCards.com, email Lance Davis, VP of Content, at
They differ from personal cards in various ways, like lacking certain legal protections, being generally more expensive and offering higher credit limits. Corporate credit cards generally need to be paid off in full each month, rather than carrying a balance. According to the Office business credit card definition of the Comptroller of the Currency, the lack of interest charges tends to make corporate cards less profitable for issuers than other cards. Instead of interest, they earn most of their money from annual fees, service fees, and the interchange fees charged to merchants.
You’ll be personally liable for any and all charges made to the card, including from authorized users linked to the business account. 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. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Our experts answer readers’ credit card questions and write unbiased product reviews (here’s how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. And use Nav Prime to get up to two actively reporting tradelines sent to all major business credit bureaus.
Corporate credit cards are designed to meet the needs of established companies—typically those with at least $4 million in annual revenues, 15-plus card users, and projected charges of $250,000 or more each year. While most businesses, including sole proprietorships, can get a small business credit card, corporate cards (as the name implies) are reserved for corporations. That means the company must be structured and registered as a C corporation or an S corporation to be eligible. Corporate credit cards are credit cards issued to employees of established companies that let them charge business expenses—such as hotel stays and plane tickets—without having to use their own cards or cash.
Building a good credit history is a combination of things—making regular, on-time payments, avoiding late payments, keeping credit utilization under your credit limit, and maintaining a low debt-to-income ratio. By making responsible purchases and paying them off in a timely manner, a credit score will rise, making a consumer more attractive to other lenders. Also, while it’s best to pay off your balance each month, your card issuer won’t allow you to use another card to do that. However, if your business makes late payments, its credit score might decline instead. A bad business credit score may make it challenging to qualify for affordable financing like business loans and business credit cards. You can’t control which credit score a lender uses to review your application.
A business credit card’s advantages also are apparent when it comes time to pay taxes. Many cards also provide detailed annual expense reports that are useful when preparing your taxes. You may be able to get a credit card through your bank or apply online.
Once you’ve put your business on the map by completing the four steps above, you can start thinking about which accounts you want to open to establish your business credit profile. Having good credit for your business provides many benefits, such as a higher chance of getting approved for loans, lower interest rates, and the ability to negotiate contracts. Business credit is an estimation of a business’s risk, or ability to repay a loan or other financial obligations, much like personal credit. This card also offers cell phone insurance limited to three claims of up to $1,000 each per year, subject to a $100 deductible.