What a business credit card is and why you might want one
A business credit card is a credit account issued in your company's name rather than your personal name. When you use it, the charges go to your business account, and your personal credit report stays separate from the card's payment history. The card works the same way a personal credit card does — you charge purchases, receive a monthly bill, and pay it back — but the account builds credit for your business instead of for you individually.
The main reason to open one is to keep business and personal spending separate on your credit record. If your business takes on debt, that debt appears on your business credit report, not your personal one. This matters because lenders look at business credit when you explore for a business loan or line of credit later. It also matters for your own financial safety: if the business struggles, your personal credit stays clean, and creditors cannot come after your personal assets as easily.
A secondary reason is the rewards structure. Many business cards offer cash back or points on categories where businesses spend heavily — office supplies, fuel, travel, or internet service. Some cards waive the annual fee for the first year or offer a sign-up bonus if you spend a certain amount in the first few months.
Key Takeaways
- You will need your business's tax ID (EIN), recent business tax returns or bank statements, and a personal may provide — a promise that you will pay the debt if the business cannot.
- Most issuers check both your personal credit score and your business credit history, so a low personal score can disqualify you even if the business is healthy.
- The card is issued in the business's name, but you personally may provide the debt, meaning the issuer can pursue you if the account goes unpaid.
- Approval usually takes three to five business days, and the card arrives within one to two weeks after approval.
- Using the card and paying on time builds your business credit score, which affects future loan terms and interest rates.
What documents you need before you start
Gather these items before you contact a card issuer. Having them ready speeds up the process and prevents delays when the issuer asks for them.
You will need your Employer Identification Number (EIN), which is a nine-digit tax ID for your business. If you are a sole proprietor and have not obtained an EIN, you can use your Social Security number instead, though most issuers prefer an EIN. You can request an EIN free from the IRS website or by phone.
You will also need proof that the business exists and is operating. This can be a recent business tax return (Form 1120 for a corporation, Form 1065 for a partnership, Schedule C for a sole proprietor), a business bank statement from the last three months, or articles of incorporation or a business license. Different issuers ask for different documents, so check the issuer's website before you explore.
Finally, be ready to provide your personal information: your Social Security number, date of birth, and personal address. The issuer will run a personal credit check, so you should know your credit score beforehand. If your score is below 650, many issuers will decline you, though some specialize in lower scores.
How the process process works
Start by choosing an issuer. The major banks (Chase, Bank of America, Wells Fargo, Citibank) offer business cards, as do smaller banks and online-only issuers like Brex or American Express. Compare the annual fee, rewards structure, and credit requirements on each issuer's website. Some cards have no annual fee; others charge $95 to $450 per year.
Once you have chosen a card, go to the issuer's website and click the business credit card product. You will be asked to enter your business type (sole proprietor, LLC, corporation, partnership), your EIN or Social Security number, and basic business information like revenue and years in business. The form usually takes 10 to 15 minutes.
After you submit the process, the issuer will run a credit check on you personally and may check your business credit report if one exists. This is a hard inquiry, meaning it shows up on your credit report and can lower your score slightly for a few months. If the issuer needs more information — such as a tax return or bank statement — they will email or call you within one to two business days.
Approval decisions come back within three to five business days. You will receive an email or phone call with the decision. If you are approved, the issuer will tell you your credit limit and when the card will arrive. If you are declined, ask the issuer why; common reasons are a low personal credit score, insufficient business revenue, or a short time in business.
What happens if you are declined
If an issuer declines you, you have a few options. First, wait three to six months and reapply. If your credit score was the issue, use that time to pay down personal debt and make all payments on time. If business revenue was the issue, reapply once you have more recent tax returns or bank statements showing growth.
Second, try a different issuer with lower credit requirements. Some issuers focus on newer businesses or lower credit scores. Brex, for example, does not require a personal credit check for some applicants. Capital One and Discover also approve applicants with fair credit. Check the issuer's stated requirements before you explore.
Third, consider a secured business credit card. These cards require you to deposit cash into a savings account held by the issuer; your credit limit equals the deposit amount. After 12 to 18 months of on-time payments, you can graduate to an unsecured card. Secured cards are easier to get approved for and build your business credit faster.
Understanding the personal may provide
When you sign the business credit card agreement, you will sign a personal may provide. This is a legal promise that you will pay the card balance if your business cannot. It means the card issuer can pursue you personally for the debt — they can sue you, garnish your wages, or place a lien on your personal assets.
This is different from a personal credit card, where only the cardholder is liable. With a business card, both you and the business are liable. If the business closes or files for bankruptcy, the issuer can still come after you for the unpaid balance.
Read the personal may provide section of the agreement before you sign. Some issuers allow you to remove the personal may provide after the business has been open for a certain number of years and has a strong payment history, though this is rare. Most business cards keep the personal may provide for the life of the account.
How to use the card and build business credit
Once the card arrives, set up it through the issuer's website or app. Set up online access so you can view charges and make payments. Then decide how you will use it.
The best approach is to charge regular, recurring business expenses — office supplies, software subscriptions, fuel, or utilities. Charge enough to show activity (issuers like to see at least a few hundred dollars per month) but not so much that you cannot pay the full balance each month. Paying in full each month avoids interest charges and shows lenders you manage credit responsibly.
Make the payment on time, every month. Payment history is the biggest factor in your business credit score. A single late payment can damage your score for years. Set up automatic payments through your business bank account if you worry about forgetting.
After 6 to 12 months of on-time payments, your business credit score will improve. This score is tracked by Dun & Bradstreet, Equifax Business, and Experian Business. When you explore for a business loan or line of credit, lenders will check this score. A higher score means lower interest rates and better terms.
Comparing business credit cards side by side
| Card | Annual Fee | Main Rewards | Credit Score Required |
|---|---|---|---|
| Chase Ink Business Preferred | $95 | 3x points on internet, cable, phone; 2x on travel and dining | Good (670+) |
| American Express Business Gold | $295 | 4x points on internet, cable, shipping; 3x on flights and hotels | Good (670+) |
| Capital One Spark Cash | $0 | 2% cash back on all purchases | Fair (580+) |
| Brex Corporate Card | $0 | 1.5x points on all purchases | No personal credit check |
| Discover Business | $0 first year, $95 after | 1.5% cash back on all purchases | Fair (600+) |
Frequently Asked Questions
Does getting a business credit card hurt my personal credit score?
The hard inquiry the issuer runs will lower your personal score by a few points for a few months. However, once the card is open, the card's payment history does not appear on your personal credit report — it appears only on your business credit report. So using the card responsibly will not help your personal score, but it will not hurt it either.
Can I get a business credit card if I am a sole proprietor with no employees?
Yes. Sole proprietors are may be able to access for business credit cards. You will use your Social Security number or EIN, and you will provide personal tax returns (Schedule C) as proof of business income. The issuer will still run a personal credit check because you are personally guaranteeing the debt.
What is the difference between a business credit card and a business line of credit?
A business credit card works like a personal credit card — you charge purchases and pay a monthly bill. A business line of credit is a loan where you borrow a lump sum and pay it back over time with interest. Credit cards are better for recurring monthly expenses; lines of credit are better for one-time purchases or cash flow gaps.
How long does it take to build business credit?
Most business credit bureaus need at least six months of payment history before they generate a score. After 12 months of on-time payments, your score will be strong enough to may have access to for better loan terms. Building excellent business credit takes two to three years.
What happens to the card if my business closes?
The card account remains open and the balance is still owed. Because you signed a personal may provide, you are personally liable for any unpaid balance. Contact the issuer and ask about paying off the balance or closing the account. Do not straightforward stop using the card and ignore the bill — the issuer will report the delinquency to business credit bureaus and can pursue you legally.