What is a business credit card?

A business credit card is a type of credit card designed to make business-related purchases and manage finances. It offers a revolving credit line with a set limit to make purchases and build business credit history. Designed for companies, including sole proprietorships, partnerships, LLCs, and corporations, a business credit card is not intended for personal use. It often provides rewards or benefits tailored for small businesses, such as cash back or travel rewards, welcome bonuses, 0% intro APRs, and employee cards with spending controls.

How do business credit cards work?

Like personal credit cards, business credit cards provide a revolving line of credit. You can borrow up to a specific credit limit, make purchases, and then pay back what you've spent. The primary purpose is to cover business-related expenses, such as inventory and supplies, equipment and machinery, travel expenses, and software subscriptions.

What are the benefits of using a credit card for business?

Besides making purchases, the most important benefit of using a business credit card is to separate business and personal finances for easier accounting and tax preparation. Also, it can help build business credit in order to secure future financing. Small business credit cards offer improved cash flow management through short-term credit, show detailed expense tracking and reporting, and can deliver valuable rewards tailored to business spending, such as cash back on office supply purchases.

How do I apply for a business credit card?

You'll need to gather personal and business information like your Social Security Number and Employee Identification Number, business revenue, and legal structure. A personal guarantee is sometimes required. This means you, as the small business owner, are personally liable for the debt if your business cannot repay it. Once you apply for a card, approval can be instant or take a few weeks.

Are business credit cards suitable for small businesses?

Yes. Business credit cards are crucial for separating business and personal finances, and simplifying taxes and bookkeeping. They help build business credit, preparing the way for financing. Small businesses benefit from improved cash flow, expense tracking, and valuable rewards tailored to business spending. While a personal guarantee is sometimes required, the advantages—like convenience, fraud protection, and financial management—make a business credit card a helpful tool for most small operations.

Can I get a business credit card with bad credit?

It's possible to get a business credit card with bad credit, but your options will be more limited. One option is a secured business credit card. You provide a cash deposit that acts as collateral, and your credit limit is typically equal to that deposit. A second option is a card like the Nav Prime, which doesn't require a personal credit check or a security deposit, because instead of a fixed limit, the Nav Prime dynamically adjusts its credit limit based on your linked bank account's balance and activity. Another goal could be trying to get a business credit card intended for "fair" credit, because “bad” and “fair” overlap somewhat. These cards are unsecured but might carry higher APRs and lower credit limits.

Can an LLC get a business credit card?

Yes, a Limited Liability Company (LLC) can and should get a small business credit card. It's recommended for maintaining the LLC's limited liability protection, as it separates business and personal expenses. This separation is vital for legal clarity and simplifies accounting and tax preparation. A business credit card also allows your LLC to build its business credit history, independent of your personal credit, which is crucial for future financing and vendor relationships.

Can I use my EIN to get a credit card for business?

You can use your EIN (Employer Identification Number) when applying for a small business credit card. It's a standard piece of business information requested. However, many credit card issuers will also require your Social Security Number and a personal guarantee.

Business Credit Cards | Compare top options

SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers not SoFi Lending Corp., and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are from the service provider. Please review each provider’s Terms and Conditions for additional details.

Credit card advertising disclosures
Opinions, reviews, and analyses are the editor’s alone, and have not been reviewed, approved, or otherwise endorsed by any of the credit card issuers.

SoFi’s marketplace works with CardRatings by QuinStreet for credit card products. SoFi and CardRatings may receive a commission from card issuers. SoFi’s marketplace strives to keep displayed information accurate and up to date. The information presented could be subject to change and may be different from what you see when you visit the provider or specific product’s site. This does not constitute an endorsement. Options displayed may not be available to all. When evaluating options, please review the provider’s Terms and Conditions.

The actual terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal and/or business financial factors.

SoFi doesn’t provide tax or legal advice. Individual circumstances are unique. Consult with a qualified tax advisor or attorney about your specific needs.

SMB25-2645200

TLS 1.2 Encrypted

Equal Housing Lender