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Best Business Credit Cards of 2020
The best business credit cards offer rewards in categories where businesses often spend the most, while helping them build their credit history. If you’re a business owner who’s interested in getting a credit card, browse our list of the best business credit cards of 2020.
Companies can use business credit cards to pay for expenses and earn rewards, overcome financial challenges, improve their cash flow and build their credit scores — which is important for getting loans and other forms of credit.
Having a business credit card can also help you keep your business and personal finances separate, making accounting easier. According to the Federal Reserve, more than 50% of U.S. employer firms use credit cards, and it’s easy to see why.
Compare the Best Business Credit Cards of 2020
|Card||Rewards Rate||Annual Fee||Welcome Bonus|
|American Express Blue Business Cash™ Card – Best for no annual fee||Earn 2% cash back on all eligible purchases up to $50,000 per year, and 1% cash back after. Terms Apply.||No annual fee ( See Rates & Fees )||No current offer|
|The Business Platinum Card® from American Express – Best for business travel||5x 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. Terms Apply.||$595 ( See Rates & Fees )||75,000 Membership Rewards® points after you spend $15,000 on qualifying purchases within your first 3 months of Card Membership. Terms Apply.|
|Discover it® Miles – Best for freelance travelers||1.5x miles on all purchases and match of the miles you earn at the end of your first year||See Terms||Unlimited Bonus: Discover will match all the Miles you’ve earned at the end of your first year, automatically.|
Business credit cards can be used by all types of businesses to pay for expenses, build credit and earn rewards. If you’re interested in getting one, we answer all your questions concerning business credit cards below.
What are business credit cards?
A business credit card is a type of credit card intended for business use rather than personal use. It can be used by you and your employees to pay for necessary business expenses, such as office supplies and travel. They usually offer better sign up bonuses and rewards than personal credit cards, often with lower annual fees and higher credit limits.
What qualifies you for a business credit card?
It’s easier to qualify for a business credit card than you think. If you earn income from selling something or performing a service, even if it’s just a few thousand dollars a year, you will likely be able to qualify. You may even be able to get a business credit card before you’ve turned a profit if you have a good personal credit score.
Can I get a business credit card with my EIN (employer identification number)?
Some business credit cards, especially cards designed for bigger companies, allow you to apply with your employer identification number (EIN) instead of your social security number. This often means that your personal credit history won’t be checked during the application process, and your assets won’t be on the line if your company defaults on the card. However, most corporate cards require millions of dollars in revenue. Therefore, if you’re a sole proprietor or you run a small business, you’ll likely have to use your social security number to get a business credit card.
How to apply for a business credit card
Most credit card companies allow you to apply for a business credit card online. You’ll need to provide information like your company’s name, address and annual revenue. You’ll also need to include some personal information like your social security number and income in your application. Once you’ve completed the online forms, you should get your decision shortly. If you’re approved, you will receive the designated card in the mail within a week or two.
How do I build credit for my LLC?
There are two main ways that you can build credit as a business — working with vendors that report payments to business credit bureaus and opening a business credit card. The main factors that determine your business credit score are how consistent you are with payments and how much credit you use, so it’s important to pay all of your bills on time and be smart with your spending.
How can I check my business credit?
Experian, Dun & Bradstreet and Equifax are the three major credit bureaus that provide business credit reports. To check your business credit score, you have to go to one of their websites and pay a small fee to see your full credit report.
Do business credit cards affect your personal credit score?
Being the main account holder of a business credit card may affect your personal credit score. Almost all issuers require you to sign a personal guarantee before you can get a business credit card. A personal guarantee is an agreement that gives your creditor the right to go after your assets if your company falls behind on payments. If your business goes through a financial rough patch, the delinquency will show up on your personal credit report and could impact your credit score.
How many credit cards should a small business have?
There isn’t a magic number when it comes to how many business credit cards you should have. If your business has lots of expenses, it may make sense for you to have multiple credit cards to have access to more credit and to maximize the rewards you can earn. However, spreading out your expenses across multiple cards can make it harder to keep everything organized. So if you do choose to use multiple cards, make sure you have solid accounting strategies in place so you don’t end up with a surprise bill at the end of the month.
How to use a business credit card to manage cash flow and earn rewards
If you’re waiting on payments from customers but have expenses you need to cover in the meantime, you can charge them to your credit card. As long as you stick to making purchases you can pay off before any interest is charged, having a business credit card will save you money and earn rewards.
Please Note: Information about the Discover it® Miles have been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.
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