Best of
12 Best Small Business Credit Cards of April 2020
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Our pick for
0% intro APR + AmEx points
on American Express's website, or call (866) 512-6673
on American Express's website, or call (866) 512-6673
Annual Fee
$0
Regular APR
13.24% - 19.24% Variable APR
Intro APR
0% on Purchases and Balance Transfers for 12 months from date of account opening
Recommended Credit Score
Pros
You'll get an introductory 0% APR for 12 months on purchases and balance transfers, and then the ongoing APR of 13.24% - 19.24% Variable APR. For rewards, the card gives you 2 Membership Rewards points per dollar spent on everything, on up to the first $50,000 in purchases made every year, and 1 point per dollar after that. (Terms apply.)Cons
The $50,000 spending cap on double points reduces this card's value for businesses with high operating expenses. Prefer cash to points? See the American Express Blue Business Cash™ Card, below.- Get rewarded for business as usual. Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners.
- 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
- Enjoy the flexibility to put more purchases on the Card and earn rewards when you buy above your credit limit*.
- You’ve got the power to use your Card beyond its credit limit* with Expanded Buying Power.
- More buying power for your business means more opportunities to earn points. That’s everyday business with the Blue Business Plus Card.
- *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
- 0.0% intro APR on purchases and balance transfers for 12 months from the date of account opening, then a variable rate, 13.24% - 19.24%, based on your creditworthiness and other factors as determined at the time of account opening.
- No Annual Fee
- Terms Apply
- View Rates and Fees
Our pick for
0% intro APR + cash-back rewards
on American Express's website
on American Express's website
Annual Fee
$0
Regular APR
13.24% - 19.24% Variable APR
Intro APR
0% on Purchases and Balance Transfers for 12 months
Recommended Credit Score
Pros
You get an introductory 0% APR for 12 months on purchases and balance transfers, and then the ongoing APR of 13.24% - 19.24% Variable APR. For rewards, you earn 2% cash back on the first $50,000 in purchases each year, and 1% after that. Terms apply.Cons
The $50,000 cap on 2% cash back makes this card a poor fit for businesses with high expenses. Prefer Amex points to cash back? See The Blue Business® Plus Credit Card from American Express, above.- Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
- From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power§.
- Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
- 0.0% intro APR on purchases and balance transfers for 12 months from the date of account opening, then a variable rate, 13.24%, 16.24%, or 19.24%, based on your creditworthiness and other factors as determined at the time of account opening.
- No Annual Fee
- Terms Apply
- View Rates and Fees
Our pick for
Cash back: Flat-rate rewards
on Capital One's website
on Capital One's website
Annual Fee
$0 intro for the first year, then $95
Regular APR
18.49% Variable APR
Intro APR
N/A
Recommended Credit Score
Pros
If your business expenses don't fall neatly into the bonus categories on other cards, a flat-rate cash back card is perfect for you, especially one that pays a generous 2% cash back on everything. This card also comes with a handsome sign-up bonus.Cons
There's an annual fee of $0 intro for the first year, then $95. After the first year, you’ll need to put $4,750 on the card annually to break even. If you plan to spend less, consider a no-annual-fee card instead.- Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening
- Earn unlimited 2% cash back for your business on every purchase, everywhere, no limits or category restrictions
- $0 annual fee for the first year; $95 after that
- Free employee cards, which also earn unlimited 2% cash back on all purchases
- $0 Fraud Liability if your card is lost or stolen
- Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
Our pick for
Cash back: Bonus categories
on Chase's website
on Chase's website
Annual Fee
$0
Regular APR
14.74% - 20.74% Variable APR
Intro APR
0% on Purchases for 12 months
Recommended Credit Score
Pros
You get 5% cash back on up to $25,000 in combined spending per account year at office supply stores and on internet, cable and phone services; 2% cash back on the first $25,000 in combined spending per account year at gas stations and restaurants; and 1% on everything else. There's a great sign-up bonus, a 0% intro APR period and a $0 annual fee.Cons
The bonus categories might not be a good match for your spending — and the limit on spending eligible for 5% or 2% rewards might be too low for some businesses.- Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening
- 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
- Earn 1% cash back on all other card purchases with no limit to the amount you can earn
- 0% introductory APR for 12 months on purchases
- Employee cards at no additional cost
- No Annual Fee
Our pick for
Travel rewards: Bonus categories + big sign-up offer
on Chase's website
on Chase's website
Annual Fee
$95
Regular APR
17.49% - 22.49% Variable APR
Intro APR
N/A
Recommended Credit Score
Pros
If your business's budget includes enough expenses to earn it, the sign-up bonus is worth $1,250 if you redeem the points for travel booked through Chase. (You can also transfer points to a dozen or so airline and hotel programs, including United, Southwest, Marriott and Hyatt.) You'll earn 3 points per dollar on up to $150,000 a year in spending on travel, telecommunications (internet, phone and cable), shipping, and advertising on social media and search engines; all other spending earns 1 point per dollar.Cons
This card's bonus categories aren't a good fit for all business owners. There's an annual fee of $95. After the first year, you’d have to spend at least $2,534 before the rewards make up for the annual fee. This might not matter as much to you, though, if you deduct the fee as a business expense on your taxes.- New Offer! Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when redeemed through Chase Ultimate Rewards®
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
- Earn 1 point per $1 on all other purchases - with no limit to the amount you can earn
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards
- Redeem points for travel, cash back, gift cards and more - your points don't expire as long as your account is open
- No foreign transaction fees
- Employee cards at no additional cost
- $95 Annual Fee
Our pick for
Travel rewards: Premium rewards and perks
on American Express's website, or call (866) 512-6673
on American Express's website, or call (866) 512-6673
Annual Fee
$595
Regular APR
N/A
Intro APR
N/A
Recommended Credit Score
Pros
No, this card is not cheap, but it comes with an extensive portfolio of benefits that make it well worth the investment for entrepreneurs who are always on the road: 5X points on flights and prepaid hotels on amextravel.com, access to more than 1,200 airport lounges worldwide, a $200 annual credit for incidental airline fees, plus reimbursement for the application fee for TSA Precheck or Global Entry, and automatic elite status with Marriott and Hilton hotels. That’s not even mentioning the sizable bonus offer for new cardholders.Cons
The $595 annual fee is very steep. Keep in mind, though, that the fee is a deductible business expense.- Earn 75,000 Membership Rewards® points after you spend $15,000 on qualifying purchases within your first 3 months of Card Membership.
- Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
- Get 50% more Membership Rewards® points. That's an extra half point per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.
- 35% Airline Bonus: Use Membership Rewards® Pay with Points for all or part of a flight with your selected qualifying airline, and you can get 35% of the points back, up to 500,000 bonus points per calendar year when you book on amextravel.com.
- Enroll to get up to $200 in statement credits annually by getting up to $100 semi-annually for U.S. purchases with Dell. Terms apply.
- Terms Apply
- View Rates and Fees
Our pick for
Travel rewards: Flat-rate rewards
on Capital One's website
on Capital One's website
Annual Fee
$0 intro for the first year, then $95
Regular APR
18.49% Variable APR
Intro APR
N/A
Recommended Credit Score
Pros
This card earns unlimited 2 miles per dollar on all purchases. (You get 5 miles per dollar on hotels and rental cars booked through Capital One Travel.) Miles can be redeemed for any travel expense — no blackout dates or restrictions — at a rate of 1 cent apiece. There's a great sign-up bonus, too.Cons
The card has an annual fee of $0 intro for the first year, then $95. After the first year, you'd have to spend at least $4,750 a year on the card before the rewards would outweigh the cost. But keep in mind that this fee could be deducted as a business expense on your taxes.- Earn a one-time bonus of 50,000 miles – equal to $500 in travel – once you spend $4,500 on purchases within the first 3 months from account opening
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Earn 5X miles on hotel and rental car bookings through Capital One Travel℠ using a Spark Miles card
- Transfer your miles to 10+ leading travel loyalty programs like JetBlue™, Air Canada, and Emirates™
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- Fly through security with one statement credit for either the $85 TSA Pre✓® application fee or the $100 Global Entry application fee
- $0 intro annual fee for the first year; $95 after that
- Free employee cards which also earn unlimited 2X miles from their purchases
Our pick for
Flexible financing
on American Express's website, or call (866) 512-6673
on American Express's website, or call (866) 512-6673
Annual Fee
$0 intro for the first year, then $250
Regular APR
N/A
Intro APR
N/A
Recommended Credit Score
Pros
Pay your bill within 10 days of your statement closing date, and you get an automatic 1.5% discount. If you need more time, pay the minimum due, and you can get up to 60 days interest-free to pay the rest. The card also has no preset spending limit. Terms apply.Cons
With a hefty annual fee after the first year, this card is designed for businesses that spend big. And while it offers flexible terms, it's still a charge card, meaning your balance will be due in full — you can't spread out the cost of a purchase over several months.- Paying early pays off: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
- Take up to 60 days to pay with no interest, if you pay your minimum due.
- Use the power of the Plum Card to buy big for your business.
- No Foreign Transaction Fees.
- Introductory annual fee of $0 for the first year, then $250
- Terms & Restrictions Apply.
- View Rates and Fees
Our pick for
Airline credit card
on American Express's website, or call (866) 512-6673
on American Express's website, or call (866) 512-6673
Annual Fee
$550
Regular APR
15.74% - 24.74% Variable APR
Intro APR
N/A
Recommended Credit Score
Pros
The card gets you into Delta's Sky Clubs and American Express Centurion Lounges. Every year, you get a companion certificate, which lets you bring someone with you on a domestic flight, regardless of what fare class your ticket is. Rewards: 3 miles per dollar on Delta purchases and 1 mile per dollar on other purchases (rising to 1.5 miles per dollar after you spend $150,000 in a calendar year). There's a super sign-up bonus, too. Terms apply.Cons
All the perks come at a cost, and a high one: The annual fee is $550. That fee can be a deductible business expense, though, and if you use this card as intended, you'll get your money's worth.- Limited Time Offer: Earn up to 100,000 bonus miles and 20,000 Medallion® Qualification Miles (MQMs). Earn 80,000 bonus miles and 20,000 MQMs after you spend $5,000 in purchases on your new Card in your first 3 months. Plus, earn an additional 20,000 bonus miles after your first anniversary of Card Membership.
- With Status Boost™, earn 15,000 Medallion® Qualification Miles (MQMs) after you spend $30,000 in purchases on your new Card in a calendar year, up to four times per year getting you closer to Medallion Status. MQMs are used to determine Medallion Status and are different from the miles you earn toward flights.
- Complimentary Delta Sky Club® Access and complimentary access to The Centurion Lounge when flying on a same-day Delta-marketed or Delta-operated flight. The eligible flight must be booked on a U.S. issued American Express Credit Card.
- After you spend $150,000 on your Card in a calendar year, you earn 1.5 Miles per dollar (that’s an extra half mile per dollar) on eligible purchases the rest of the year. Eligible purchases after spending $150,000 do not include Delta purchases.
- Pay no foreign transaction fees when you spend overseas.
- Earn 3 Miles on every dollar spent on eligible purchases made directly with Delta.
- Terms and limitations apply.
- View Rates and Fees
Our pick for
Hotel credit card
on American Express's website
on American Express's website
Annual Fee
$125
Regular APR
15.74% - 24.74% Variable APR
Intro APR
N/A
Recommended Credit Score
Pros
You earn 6 points per dollar at participating Marriott Bonvoy hotels; 4 points per dollar at U.S. restaurants, U.S. gas stations, wireless telephone services purchased directly from U.S. service providers, and on U.S. purchases for shipping; and 2 points per dollar on all other eligible purchases. Marriott's broad portfolio of hotel brands gives you maximum flexibility in earning and redeeming rewards.Cons
The $125 annual fee is a bit on the high side. You'll have to use the perks to get proper value out of the card.- Earn 75,000 bonus Marriott Bonvoy points after you use your new Card to make $3,000 in purchases within the first 3 months.
- 6x points at participating Marriott Bonvoy hotels.
- 4x points at U.S. restaurants, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. 2x points on all other eligible purchases.
- Receive 1 Free Night Award every year after your Card account anniversary. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at a participating hotel. Certain hotels have resort fees.
- Enjoy complimentary Marriott Bonvoy Silver Elite status with your Card. Plus, earn Gold Elite status after making $35,000 in eligible purchases on your Card in a calendar year.
- Terms apply.
- View Rates and Fees
Our pick for
Cash back: Flat-rate rewards + no annual fee
on Discover's website, or call (800) 347-0264
on Discover's website, or call (800) 347-0264
Annual Fee
$0
Regular APR
14.49% - 22.49% Variable APR
Intro APR
0% on Purchases for 12 months
Recommended Credit Score
Pros
Flat-rate rewards are ideal for those whose business expenses are all over the place and don't fit into the bonus categories on other cards. Plus, at the end of your first year, Discover matches all the cash back you earned in that year. The $0 fee means you never have to worry about breaking even.Cons
You can get a higher flat rate with other cards — and if you're a bigger spender, you may come out ahead with them even if you pay a fee. Above $19,000 in spending, for example, you'd do better with a 2% card with a $95 fee than a 1.5% card with no fee.- INTRO OFFER: Get an unlimited dollar-for-dollar match of all the cash back you earn at the end of your first year, automatically. And no limit to how much we’ll match. So you could turn $350 cash back into $700 with Cashback Match™.
- Earn 1.5% cash back on every dollar spent on all purchases.
- Redeem your cash back for any amount, any time. Your rewards never expire.
- Track business expenses. Download transactions easily into Quicken, QuickBooks, and Excel.
- Add up to 50 free employee cards.
- No annual fee.
- 100% U.S. based customer service. Talk to a real person at any time, day or night.
- Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
- View Rates and Fees
Our pick for
No personal guarantee
on Brex's website
on Brex's website
Annual Fee
$0
Regular APR
N/A
Intro APR
N/A
Recommended Credit Score
Pros
Apply for the card through NerdWallet for a great offer: 75,000 in Brex Rewards points upon signup and waived card fees for life (equal to $750+ value). This card pays 1 point per dollar spent on purchases, but if you make the Brex Card for Startups your only company card, you'll earn elevated rewards on rideshares (7 points per dollar), travel booked through Brex (4 points per dollar), restaurants (3 points per dollar) and recurring software expenses (2 points per dollar). You'll also qualify for valuable offers from such business service providers as Amazon Web Services, Google Ads, WeWork and Salesforce.Cons
Your business must have a $100,000 bank balance to apply. This is a charge card, not a credit card, meaning the balance is due in full each billing cycle.- 75,000 in Brex Rewards points upon signup and waived card fees for life (equal to $750+ value)*
- No personal guarantee needed - we do not ask for a personal credit check or security deposit during the application.
- Credit limits 10-20x higher than traditional small business corporate cards.
- $100,000 bank balance required to qualify for Brex.
- Exclusive signup offers from the best products and tools for your business (e.g. AWS, Google Ads, WeWork, Salesforce) worth over $50,000 in value.
- Earn points on every dollar spent with industry-leading multipliers: 7x on rideshare, 4x on travel, 3x on restaurants, 2x on software subscriptions and 1x on all other transactions.
- Miles transfer program to 6 airlines (including Singapore Airlines, Qantas, Air France, and more) and their loyalty programs, giving Brex customers access to book travel across all of the major global airline alliances - Star Alliance, Oneword, and SkyTeam.
- 30-day charge card running on the Mastercard network. Enjoy global acceptance with no foreign transaction fees.
- Build business credit: Brex partners with Dun & Bradstreet and Experian to report your on-time payments.
- Make employee expenses seamless - automated receipt-capture and expense matching and reconciliation via text and email. Instantly add new users and set spending limits.
- Simplify reconciliation with built-in integrations with Quickbooks, Xero and more.
Summary of Best Small Business Credit Cards of April 2020
| Credit Card | Best For | Intro APR | Regular APR | Annual Fee | Learn More |
|---|---|---|---|---|---|
The Blue Business® Plus Credit Card from American Express on American Express's website, or call (866) 512-6673 | 0% intro APR + AmEx points | 0% on Purchases and Balance Transfers for 12 months from date of account opening | 13.24% - 19.24% Variable APR | $0 | on American Express's website, or call (866) 512-6673 |
American Express Blue Business Cash™ Card on American Express's website | 0% intro APR + cash-back rewards | 0% on Purchases and Balance Transfers for 12 months | 13.24% - 19.24% Variable APR | $0 | on American Express's website |
Capital One® Spark® Cash for Business on Capital One's website | Cash back: Flat-rate rewards | N/A | 18.49% Variable APR | $0 intro for the first year, then $95 | on Capital One's website |
Ink Business Cash℠ Credit Card on Chase's website | Cash back: Bonus categories | 0% on Purchases for 12 months | 14.74% - 20.74% Variable APR | $0 | on Chase's website |
Ink Business Preferred® Credit Card on Chase's website | Travel rewards: Bonus categories + big sign-up offer | N/A | 17.49% - 22.49% Variable APR | $95 | on Chase's website |
The Business Platinum Card® from American Express on American Express's website, or call (866) 512-6673 | Travel rewards: Premium rewards and perks | N/A | N/A | $595 | on American Express's website, or call (866) 512-6673 |
Capital One® Spark® Miles for Business on Capital One's website | Travel rewards: Flat-rate rewards | N/A | 18.49% Variable APR | $0 intro for the first year, then $95 | on Capital One's website |
The Plum Card® from American Express on American Express's website, or call (866) 512-6673 | Flexible financing | N/A | N/A | $0 intro for the first year, then $250 | on American Express's website, or call (866) 512-6673 |
Delta SkyMiles® Reserve Business American Express Card on American Express's website, or call (866) 512-6673 | Airline credit card | N/A | 15.74% - 24.74% Variable APR | $550 | on American Express's website, or call (866) 512-6673 |
Marriott Bonvoy Business™ American Express® Card on American Express's website | Hotel credit card | N/A | 15.74% - 24.74% Variable APR | $125 | on American Express's website |
Discover it® Business Card on Discover's website, or call (800) 347-0264 | Cash back: Flat-rate rewards + no annual fee | 0% on Purchases for 12 months | 14.49% - 22.49% Variable APR | $0 | on Discover's website, or call (800) 347-0264 |
Brex Card for Startups on Brex's website | No personal guarantee | N/A | N/A | $0 | on Brex's website |
Can you apply for a small-business credit card?
The term "small business" is often associated with enterprises like a corner store, an accountant's office or a landscaping company. But small-business cards can make sense for anyone who is in business for him- or herself, whether it's a full-time job, freelancing, gig work or a side hustle.
You don't need to be incorporated or have a formal business structure, like an LLC or partnership. Most entrepreneurs are "sole proprietors" — sole proprietorships account for about three-quarters of all businesses in the U.S. — and they're eligible to apply for small-business credit cards.
Why get a small-business credit card? Small-business cards help you keep business and personal finances separate. When you use the card only for business spending, interest and fees on the card can be tax-deductible business expenses. And small-business cards offer rewards, perks and bonuses that rival (and in many cases surpass) those on consumer credit cards.
What the application asks for
Applications for small-business credit cards are a lot like those for consumer cards, with a few important differences. The application may ask for:
- A business name. If you don't have a formal business name, this can just be your name. When you're a sole proprietor, you literally are the business.
- Business contact information. If you don't have a separate business address and phone number, don't sweat it. Your personal address and phone number are just fine.
- A federal Taxpayer Identification Number. Don't get intimidated by this term. Your Social Security number is a federal tax ID number, and if you're a sole proprietor, you can put that down. If you have employees or a formal business structure, you'll probably have an Employer Identification Number, and you can use that.
- The industry you're in. What do you do in your business? This can be a broad category like retail, medical or professional services, or something more specific. If you're stumped for the proper way to describe it, think about the service you provide. Drive for Uber? That's transportation. DoorDash or Grubhub? That's delivery.
- How long you've been in business.
- Revenue and expenses. Revenue is simply how much money you brought in from your business. Expenses are all the money you spent in to earn that money.
What you do not need
- A formal business structure. The application will ask you to specify what kind of business it is. If your business is organized as a corporation, partnership or LLC, put that down. If you operate without a formal or legal business structure, that's fine, too. You can put down "sole proprietor."
- An existing business credit history. Although businesses can have credit histories and credit scores of their own (more on that below), a separate business credit file isn't necessary to qualify for a small-business credit cards. That's because most cards require you to personally guarantee the debts of the business (also discussed below). In other words, you qualify for a small-business credit card based on your personal credit history and credit scores.
Understanding small-business credit cards
Business and consumer credit cards differ in a few critical ways. Here’s what you should know before applying.
You’ll have to sign a personal guarantee
Virtually all small-business credit card applications include personal guarantees, where you agree to be personally liable for the debt accrued. This means you’re responsible for the balances even if your business goes belly-up. Keep this in mind when applying and avoid borrowing more than you’re able to pay back.
Your personal credit may be affected
When you apply for a small business credit card, the application will probably show up as an inquiry on your personal credit report, which can cost you a few points on your credit scores for a short time. That’s because your issuer wants to make sure that you, the business owner, are personally on solid financial footing before letting you borrow money.
After that, small business cards generally fall into two categories: some report your account payment history only to commercial credit bureaus, while others report to both consumer and commercial bureaus. In the latter case, your good or bad spending habits on your small business credit card could affect both your personal and business credit.
| Does the issuer report small-business credit card activity to consumer credit bureaus? | Does the issuer report small-business credit card activity to commercial credit bureaus? | |
|---|---|---|
| American Express | Yes, but only negative information | Yes |
| Bank of America | No | Yes |
| BBVA | No | No |
| Capital One | Yes | Yes |
| Chase | No, unless the account is seriously delinquent | Yes |
| Citi | No | Yes |
| Discover | Yes | Yes |
| U.S. Bank | No, unless the account is seriously delinquent | Yes |
| Wells Fargo | No | Yes |
They generally aren’t covered by consumer protection laws
As a courtesy, issuers today generally extend many consumer protections for personal credit cards to small-business credit cards. But the law doesn’t require them to do so. The consumer-friendly Credit Card Act of 2009 set important limits on fees, interest calculations and disclosures for personal credit cards, but it doesn’t cover small-business credit cards.
Small business cards aren’t corporate cards
There are two types of business credit cards: small-business cards and corporate cards. If you’re just starting out and your revenue is in the thousands, not the millions, you’ll likely want to go with a small business credit card, the kind featured on this list. Once you hit the big time, you might want to switch over to a corporate card. This would limit your personal financial liability for the account.
Business credit scores vs. personal credit scores
Businesses can have credit scores just like individuals. When you're just getting a business off the ground, you'll probably have to rely on your personal credit to open a small-business credit card or obtain a loan. But as a business builds its credit over time, it becomes easier to secure financing separate from the owner's personal credit, as well as qualify for a business insurance policy.
» MORE: How to build business credit
Below are key differences between business credit scores and personal credit scores.
Reporting bureaus
Like consumer credit scores, business scores are generated by credit reporting bureaus — companies that collect information about debts and then use that information to estimate how risky it would be to lend money to a person or, in this case, a business. The higher the score, the lower the risk.
The main consumer credit reporting bureaus are Equifax, Experian and TransUnion. The main bureaus for business scores are Dun & Bradstreet, Equifax and Experian.
Range
Consumer credit scoring systems typically have a score range of 300 to 850. The range for business scores is usually 0 to 100.
Standardization
Consumer credit bureaus collect information independently from each other, but they use similar algorithms to calculate scores. As a result, your personal scores are likely to be similar, even if not identical, from one bureau to the next. Business credit score algorithms don’t follow an industry standard and can vary from bureau to bureau.
Access
Federal law gives you the right to a free copy of your personal credit report from each of the three major consumer credit bureaus once every 12 months. Further, you can get free access to your personal credit score in a number of ways (including from NerdWallet). Not so for business credit. You’ll have to pay to see your company’s credit report and score at the major business credit bureaus.
Privacy
Only you and certain companies have the right to see your personal credit reports and scores. But with business credit reports, all information is public, and you can get information on other companies as long as you're willing to pay for it.
» MORE: Business credit score basics
How to choose a small business credit card
Chances are, you'll use your small-business credit card quite a bit, so make sure you’re getting one with favorable terms. Here’s how:
Take stock of your business’s spending habits
If you plan on carrying balances from month to month, getting a card with a 0% APR period or low ongoing interest is more important than searching for generous rewards. Alternatively, if you plan on paying in full every month, a card with a big sign-up bonus and lucrative rewards could be a perfect fit.
Figure out what type of rewards you should go for
If earning big rewards is your goal, start by looking at your costs. For businesses that spend plenty on travel and office supplies, a card that gives bonus rewards in those categories would be an excellent choice. And for companies with spending that doesn't fit into the usual categories, a flat-rate rewards card would fit the bill.
» Confused about miles and points programs? See what these rewards are worth and read about how these programs work with our guide to travel rewards programs.
Look for business-friendly benefits
Some cards come with programs that allow you to match photos of receipts to your card purchases in-app. Many also offer free employee cards and itemized end-of-year statements that help at tax time.
For more, see our guide to choosing a business credit card
How to compare small-business credit cards
As you narrow down your choices based on your business's needs, here's how to evaluate and compare the features of different cards.
Annual fee
Many of the best small-business credit cards charge an annual fee, often in the $100 range. The rewards you earn from your spending can easily make up for it, so don't dismiss the idea of paying a fee out of hand. High-volume businesses, especially, can earn rewards that dwarf the fee. If you spend $200,000 a year on a card with a 2% rewards rate, for example, that's $4,000 a year in rewards, well worth a $100 fee. Annual fees are also deductible business expenses. Still, if you're 100% opposed to paying a fee, there are fine no-fee options available.
Rewards structure
If you opt for a rewards credit card, you'll have two choices to make. The first is whether you want a flat-rate card or a bonus-category card:
- Flat-rate cards pay you the same rewards on every purchase, regardless of what you buy or where. If you want simplicity, or if your business's expenses tend to run the gamut without any particular category predominating, then a flat-rate card may be best for you.
- Bonus-category cards pay a higher rewards rate in certain categories and a lower base rate on everything else. If you don't mind (or if you enjoy) keeping track of categories and moving spending around to maximize your return, then these cards may be right for you. A bonus category card is an excellent choice if you spend a lot of money in just a few areas. Typical bonus categories for business credit cards include things like office supplies, travel, telecommunications, advertising and shipping.
The second choice is whether you want your rewards as cash back or points.
- Cash-back cards pay you back a certain percentage of every purchase. Flat-rate cards tend to offer 1% to 2% back — spend $1,000 on something, get $10 to $20 back. Bonus-category cards go as high as 5%. Cash back is most commonly redeemed as a credit against your account.
- Points cards give you points or miles for each dollar you spend, either at a flat rate or with bonus points in certain categories. These rewards can usually be redeemed for travel, though you may have other options, such as merchandise or cash back.
Introductory APR period
A number of cards offer a lower interest rate, often 0%, when you first open the account. The 0% period may last a year or more. This can be of great benefit if you have a major business-related purchase you're looking to finance.
Ongoing APR
If you plan to pay your credit card bill in full each month, then the ongoing APR doesn't have to be a major factor in your decision. That's because you'll pay no interest. But if you expect to carry a balance from month to month, the ongoing interest rate becomes very important. Interest charges can easily eat up the value of your rewards, so prioritize a lower ongoing APR if you're going to be carrying debt.
Financing options
Some small-business credit cards offer special financing options, such as a discount if you pay early or the ability to set up installment plans to pay off specific charges. These can be useful if your business is seasonal or subject to irregular cash flow.
Free cards for employees
If you're earning rewards, you'll want to get as much company spending on the card as possible. Many issuers allow you to get additional cards at no extra cost for employees who are authorized to spend money on behalf of the business. You also may be able to set spending limits or other restrictions on employee cards.
Expense management tools
It's helpful if the issuer offers tools to help you track and categorize expenses. For example, you may be able to download transaction data into bookkeeping software. Or you could match photos of receipts to transactions. Or you may get a detailed annual report for use in preparing your taxes.
Perks
If your business has you traveling a lot, look for a card that can make your trip more comfortable. Co-branded airline and hotel cards offer special status and upgrades. Some cards give you access to airport lounges. Others provide travel insurance or rental car coverage for peace of mind.
Getting the most out of your small business card
Pay with your credit card whenever possible
For entrepreneurs who pay in full every month and don't overspend, using a rewards credit card for everything makes those points, miles or cash back add up fast. Avoid paying with a credit card when a convenience charge is added, if possible.
Lock down that sign-up bonus
To get your card's sign-up bonus, you typically need to make a few thousand dollars' worth of purchases in the first few months after opening the account. Check your card's terms and track your spending to make sure you don’t miss out.
Know when your introductory 0% APR ends
Read your credit card statements and make a note of when your promotional offer expires to avoid unpleasant surprises.
Deduct interest and fees on your taxes
If you’re using your card for business costs, fees and interest count as business expenses. That means you can deduct them at tax time.
To view rates and fees of the The Business Platinum Card® from American Express, please visit this page.
To view rates and fees of the The Blue Business® Plus Credit Card from American Express, please visit this page.
To view rates and fees of the American Express Blue Business Cash™ Card, please visit this page.
To view rates and fees of the The Plum Card® from American Express, please visit this page.
Last updated on March 26, 2020
Methodology
NerdWallet's Credit Cards team selects the best credit cards for small business based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of small-business operators. Factors in our evaluation include annual and other fees, rewards rates, the earning structure (for example, flat-rate rewards versus bonus categories), redemption options, bonus offers for new cardholders, introductory and ongoing APRs, and other noteworthy features such as special financing arrangements, free cards for employees or tools for managing business expenses.
Frequently asked questions
The fundamental difference between a small-business credit card and a corporate credit card lies in who is responsible for debts on the card:
- With a small-business card, the business owner is personally responsible for the debt. That means he or she is liable for paying the debt even if the business goes under.
- With a corporate card, the business itself is the debtor. If the company goes out of business, the owners are not personally responsible for paying the debt.
This difference is reflected in the application process for business credit cards. When you apply for a small-business credit card, the issuer will check your personal credit history as well as your business’s credit (if your business even has a credit file of its own, which many don’t). You’ll also be expected to provide a personal guarantee that you’ll repay any debt. For a corporate card, the issuer examines only the business’s credit standing. The owners and operators don’t have to provide a personal guarantee.
Because of this, corporate cards are an option primarily for companies that have already established a credit history separate from the owners.
The biggest difference between business and consumer credit cards, of course, is that you must operate a business to qualify for a business card. Beyond that:
- Consumer protections that apply to personal credit cards don’t necessarily apply to business cards. This includes things like limits on fees and rules about when the issuer can change the interest rate.
- Activity on small-business credit cards can be reported on the credit histories of both the business and the cardholder.
- Credit limits on business cards tend to be higher.
- Rewards structures are different, particularly the categories that earn bonus rewards. A business credit card is more likely to earn bonus rewards on shipping or at office-supply stores, for example, than at supermarkets or movie theaters.
In general, you must operate a business to qualify a small-business credit card, but that business does not have to be incorporated or even have a formal structure, such as a partnership or LLC. If you’re a sole proprietor, freelancer or “gig” worker, you can apply for a small-business card, too. Be aware, though, that the application will likely ask specific questions about your business — the name (if it has one), what kind of business it is, how much revenue it brings in, and so on.
The effect a business credit card has on your credit score depends on what type of card it is. A corporate card issued to you by your employer has no effect, because all account activity is reported on the employer’s credit file, not yours. Really, a corporate card is nothing but a tool you use for your job — you’re not on the hook for the debt. But if it’s a small-business card that you applied for yourself, the activity on the account could show up on your credit report and could affect your score, especially if the activity is negative, such as a missed payment or default.
The application for a small-business credit card will typically ask for the tax identification number of the business. If you have an EIN, you can use that. But you don’t need an EIN. If you’re a sole proprietor, you can use your Social Security number. Either way, the application will also ask for information about the individual who is personally guaranteeing the debt. You’ll use your Social Security number for that.
