Learn How to Choose the Right Business Credit Card

A business credit card might make your life easier by separating your personal and company spending.


You may even receive rewards on company purchases, a reduction in interest payments, or bonuses that are sure to keep your employees happy. Here are some things to think about when selecting a business credit card.

Tip: If you apply for a business credit card, don’t be startled if the application asks for your personal credit information, especially if you’re a sole proprietor. If you are authorized, the credit card company may hold you personally accountable for any expenditures that your company cannot repay.

Your Payment Routines

Consider a business credit card with an introductory promotional APR on purchases, balance transfers, or both if you need to rapidly invest a lot of money in your firm or if you already have high-interest rate credit card debt. These deals provide you time—often up to a year—to pay off larger company expenditures such as equipment, office furnishings, or new technology without incurring interest costs.

You might be able to find a card with no balance transfer fee, but if not, make sure you’ll save more in interest than you’ll pay for the transfer. (Balance transfers are typically 3% to 5% of the transaction amount.)


If you have a habit of carrying a balance, make sure the ongoing APR is as low as possible. It should be noted that the APRs for balance transfers and cash advances may differ. When you skip a payment or exceed your credit limit, the card may even charge you a significantly higher penalty APR.

Tip: A charge card is a good solution if you have a large operating budget and don’t need to carry a load from month to month. These frequently do not have a defined spending limit; instead, the limit is established by your spending habits, income, and creditworthiness. Just make sure you only charge what you can afford to pay.


Many company credit cards provide cashback or other benefits on purchases, sometimes at varying rates based on the category of expenditure. For example, perhaps you and your workers travel frequently and should have a card that rewards miles or points for travel. Or maybe you spend a lot of money on shipping or office supplies.

If you’re not sure how your budget is working, look over your bank statements from the last few months. To begin, new firms without a spending history can use a flat-rate rewards credit card.

Examine how awards are redeemed and ensure that you can truly use the most valuable ones. For example, some credit cards provide a statement credit or deposit to your company checking or savings account, while others focus on direct redemption with an airline or hotel.