The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Ethan's been a frequent flier for as long as he can remember, from studying abroad in Paris to moving to Shanghai after graduating college, where he served as TPG's eyes and ears for all things travel in the Asia-Pacific region. If you asked him where he wants to travel next he'd quote Anthony Bourdain and tell you "anytime I'm eating spicy noodles in a bowl, I'm happy."
Credit card writer Danyal Ahmed is an avid traveler, averaging about 100,000 aeronautical miles per year. He regularly applies that knowledge and his expertise in credit cards to his role as a credit card writer at TPG.
also contributed to this story
October 14, 2024 • 9 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
Business credit cards offer rewards and perks that can surpass those of personal cards, including unique bonus categories and valuable introductory offers.
Eligibility for a business card extends to freelancers and side hustlers, not just formal business owners, and applying does not require incorporation or a separate tax ID in many cases.
Business credit cards generally do not impact your personal credit utilization, helping keep personal and business finances distinct and simplifying expense tracking for tax and accounting purposes.
These cards can help establish a separate business credit history and often provide higher credit limits and specialized protections for business purchases.
What to consider
Requirements for business card approval vary; some issuers are more flexible, while others may request documentation such as an employer identification number or business checking account details.
Although business card activity typically does not appear on your personal credit report, you are still personally liable for repayment and may see a temporary credit score dip from the initial inquiry.
Certain business cards require balances to be paid in full each month to avoid significant fees, which could offset rewards value.
What you'll miss from the article
A detailed breakdown of unique bonus categories, application nuances and how business cards can strategically benefit small-business owners and freelancers.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
However, some people might hesitate to apply for a business credit card, even if they’re eligible to do so. In case you didn't realize, you don’t need to own a formal brick-and-mortar business to be approved for a business card.
Whether you’re a freelancer or starting a new side hustle, there are plenty of great reasons to add a business credit card to your wallet.
Here are some of the most compelling.
You don’t need a large business to get a business card
You may think you need an incorporated business with its own tax ID number or employee identification number to apply for a business credit card, but that’s just not the case. In fact, you might be eligible for a business credit card without even knowing it.
While you should aim to use your business credit card for work-related expenses, each credit card issuer has different requirements to get a small-business card.
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Some issuers, such as American Express, are very flexible. On the other hand, Chase is generally the toughest, often requiring proof of your business, including government employer identification number (EIN) and business checking account information.
However, many small businesses start as simple DBAs (doing business as), which denotes a business name used by a person or entity different from the person’s or entity’s true name.
For example, let's say you start a small eBay business and want to keep your finances separate from your personal expenses. In this case, you might consider a small-business credit card.
If you’re starting a small company as a sole proprietorship, you can provide your Social Security number when asked for an EIN, which will usually suffice. In most cases, you don’t need any paperwork to form a sole proprietorship; you become one by simply doing business.
Business credit cards don’t sit on your personal report
Business credit card applicants typically experience a two-to-five-point hit on their personal credit scores upon applying since banks generally use your personal credit report to assess your creditworthiness. This is because these cards are still usually personally guaranteed.
However, other than this initial credit inquiry, the business line of credit sits separately from your personal credit line, so your utilization ratio and other factors shouldn’t affect your personal credit score.
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That’s good news if you put big balances on your business cards since it won’t damage your personal credit score. Be careful, though, because if you default on a business credit card, the issuer can come after your personal assets since your personal credit guarantees those cards.
Plus, you can apply for a business card from most issuers without affecting your 5/24 status with Chase since the new account won’t show up on your personal credit report.
It’s easy to charge all of your expenses, both personal and business, on the same credit card for convenience.
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Still, keeping your personal expenditures separate from your business ones is important — especially during tax season. Having a separate business credit card makes tracking expenses easy, and you’ll pay less in accounting fees if your accountant doesn’t have to sort through personal versus business expenses.
Plus, it’s easier to get everything straightened out if you ever get audited by the IRS.
As a bonus, many business credit cards make it easy to export your transaction history to QuickBooks or other accounting software.
Applying for business credit cards opens you to a whole new set of welcome offers.
For instance, you might already have scored the welcome bonuses on the Chase Sapphire Preferred® Card (see rates and fees) or the Chase Sapphire Reserve® (see rates and fees). To keep racking up Ultimate Rewards points, you might want to consider the Ink Business Preferred® Credit Card (see rates and fees), for example, which is currently offering 100,000 bonus points after spending $8,000 on purchases in the first three months from account opening.
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A good place to start is to look at the cards you currently carry and see if any of them have business counterparts that might be good options for your budget and spending habits.
Maximize different bonus-earning categories
While you’ll find many business cards with travel or dining bonus categories that overlap with personal credit cards, you’ll also find many unique categories clearly geared at businesses and not consumers.
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For example, the American Express® Business Gold Card — with an annual fee of $375 (see rates and fees) — accrues 4 points per dollar in the two categories you spend the most in each billing cycle from the following list, on the first $150,000 in combined purchases each calendar year (then 1 point per dollar thereafter):
Purchases at U.S. media providers for advertising in select media (online, TV, radio)
U.S. purchases made from electronic goods retailers and software and cloud system providers
U.S. purchases at restaurants, including takeout and delivery
U.S. purchases at gas stations
Transit purchases, including trains, taxicabs, ride-hailing services, ferries, tolls, parking, buses and subways
Monthly wireless telephone service charges made directly from a wireless telephone service provider in the U.S.
There’s also the Ink Business Preferred Credit Card, which earns 3 points per dollar on your first $150,000 in combined purchases (then 1 point per dollar thereafter) each account anniversary year in the following categories:
Travel
Shipping purchases
Internet, cable and phone services
Advertising purchases made with social media sites and search engines
Many of these categories don’t overlap with those of personal cards, making business cards great for maximizing your earnings.
Business perks
Business owners often have different needs than consumers. Many issuers offer some form of transaction or expense management on business credit cards to help keep you organized, and some even offer free employee cards, which can help you rack up rewards even faster.
Although many banks decide how many credit cards you can have based on your overall credit line limit, some bankslimit the number of cards you can open. For example, you can typically only have five cards with Amex at any given time.
However, the limit for cards like The Business Platinum Card® from American Express is separate, which means you can expand your company’s buying power and rack up some great introductory offers simultaneously.
Establishing a business credit history
This one goes hand in hand with the fact that your business credit card’s line of credit doesn’t sit on your personal report.
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While you hopefully have a high personal FICO score when you apply for a business card, once that card is open, its entire record sits separately from your personal credit.
However, if your business takes off and you end up applying for financing (for equipment purchases, real estate or other large expenses), banks will look at your business credit history when determining your interest rate, and the more established your line of credit, the better rates you’re likely to get.
Business credit cards often come with higher credit lines than personal ones, which is how many small businesses get off the ground. Just remember that some business cards require the balance to be paid off in full every month or else you could incur high fees, which will likely negate the value of the points or miles you accumulate.
Bottom line
While your business might be in its early days, you may not think you need a separate credit card for business-related expenses. It’s important to remember that leveraging the right credit card for your small business provides many benefits. Business credit cards can provide important benefits to your company, including rewards you can use toward travel, perks like expense management and credit to help you grow.
For rates and fees of the Amex Business Gold, click here.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
