Business credit cards aren’t just for established businesses. If you’re a freelancer or a gig worker, you’re in luck – you’re eligible to apply too. And there are plenty of reasons why adding one to your financial toolkit could be a game-changer for your work life.
Quick Cash When You Need It
We know how frustrating it can be to juggle bills and waiting on clients to pay up. Business credit cards can help us cover immediate business expenses while we wait for cash to come in. They act as a temporary solution, giving us breathing room to pay for everything from office supplies to advertising without scrambling for funds.
Keeping Our Business and Personal Money Separate
It may seem like a small thing, but using a business credit card can save us from major headaches down the line. It helps us keep our business and personal finances distinct.
Here’s why that matters: if your business gets sued or goes through bankruptcy, blending personal and business accounts could put your personal assets at risk.
But by using a business card, we maintain that important separation, ensuring our personal savings and property stay protected.
Better Tools for Managing Finances
If you’re on the fence about getting a business credit card, it might help to consider the financial management perks that come along with it. Many cards provide us with advanced tools to manage our money better, and they might include:
- Real-time reports for each cardholder so you always know what’s going on
- The option to set spending limits on individual cards, which helps us avoid overspending
- Easy access to transaction history and instant cancellations if needed
- Automatic syncing with our accounting software for hassle-free bookkeeping
- Custom alerts to track expenses
- Categorization of our purchases, making budgeting a lot less of a headache
- Full account control right from our phones, which adds flexibility and convenience
Tax Perks We Can’t Ignore
Tax time doesn’t have to be a nightmare if we’re smart about using a business credit card. Here’s how it could benefit us:
- Maximize Deductions: Using the card for purchases like equipment or repairs can help us take advantage of deductions. For example, paying for a piece of equipment repair before year-end might mean we can write it off for this year, even though we’ll be paying it off over time.
- Streamlined Reporting: Many business cards make tax time smoother with easy-to-download reports. These detailed statements can be directly uploaded into accounting software, saving us time when filing.
How to Make the Most of Business Card Rewards
One of the best parts about business credit cards? The rewards. Here’s how we can get the most out of them:
- Time Your Bonus: Most sign-up bonuses require spending a certain amount in the first few months. We can time our application to hit that spending threshold without stretching our budget.
- Spread Out Your Spending: If you’re comfortable managing multiple cards, we can use different ones for specific expenses. For example, use one for everyday purchases that earn cash back, and another for big-ticket items that offer rewards in specific categories.
- Write Off Those Fees: Did you know we can deduct interest and fees from our taxes as business expenses? Just another reason to keep track of all those little costs—they can work in our favor come tax season.
Different Types of Business Credit Cards
When it comes to business credit cards, there are two main categories: small-business cards and corporate cards. While the cards we’ll cover here are tailored for small businesses, you might find yourself considering corporate cards as your business expands.
Small-Business Credit Cards
If you’re running a small business or working as a freelancer, and your personal credit history is solid with a decent income, you’re probably eligible for most small-business credit cards. Many credit card issuers don’t report to business credit bureaus, but some do. If that’s important to you, it’s always a good idea to check directly with the issuer. Keep in mind that even if your business doesn’t take off, you’ll still be personally responsible for any debt accumulated on the card.
Corporate Credit Cards
Corporate business credit cards are typically reserved for larger businesses that bring in over $4 million annually. These cards offer much higher credit limits compared to small-business cards and come with extensive management tools and rewards programs. A specific type of corporate card, known as a P-card (purchasing card or procurement card), is tailored to specific company purchases. These are usually charge cards and help companies keep an eye on employee spending.
The key difference with corporate cards is that if your company goes under, you’re not personally responsible for the card’s balance. The business itself is liable, not you.
Top Business Credit Cards to Consider
Ink Business Premier® Credit Card
Highlights
- Receive a $1,000 cash back bonus after spending $10,000 within the first three months.
- Earn 2.5% cash back on purchases of $5,000 or more, and 2% on all other business expenses.
- Enjoy 5% cash back on travel booked through Chase Travel, no foreign transaction fees, and trip cancellation/interruption coverage.
- This card offers unique advantages, such as the highest cash-back rate on large purchases.
- Use the Flex for Business feature to pay for purchases over time, but be sure to pay the full balance monthly.
- Built-in protections include Fraud Protection, Zero Liability Protection, and Purchase Protection, among others.
- No additional charge for employee cards. Digital tools like purchase alerts and spending limits help you manage your business expenses.
- Member FDIC.
Ink Business Cash® Credit Card
Highlights
- Earn $350 after spending $3,000 within the first three months, plus an additional $400 for spending $6,000 in the first six months.
- Get 5% cash back on the first $25,000 spent annually at office supply stores, and on internet, cable, and phone services.
- Earn 2% cash back at gas stations and restaurants on the first $25,000 spent annually.
- 1% back on all other purchases.
- No annual fee, plus 0% introductory APR for the first 12 months on purchases.
- Rewards can be redeemed for cash back, travel, and gift cards via Chase Ultimate Rewards®.
- Zero Liability protection covers unauthorized transactions.
- Member FDIC.
Ink Business Unlimited® Credit Card
Highlights
- Receive $750 after spending $6,000 in the first three months.
- Earn unlimited 1.5% cash back on every business purchase.
- No annual fee and 0% introductory APR for the first 12 months.
- Rewards can be redeemed through Chase Ultimate Rewards®.
- Set spending limits on employee cards for better control.
- Zero Liability protection ensures you’re not liable for unauthorized charges.
- Member FDIC.
The Blue Business® Plus Credit Card from American Express
Highlights
- Earn 15,000 Membership Rewards® points after spending $3,000 on eligible purchases in the first three months.
- 0.0% introductory APR on purchases for the first 12 months; variable APR applies after.
- Earn 2X points on everyday business purchases like office supplies or client dinners (up to $50,000 annually, then 1X).
- Expand your spending power beyond the credit limit, subject to conditions.
- No annual fee.
- Terms apply.
The Business Platinum Card® from American Express
Highlights
- Earn 150,000 Membership Rewards® points after spending $20,000 within the first three months.
- Access to over 1,400 airport lounges worldwide.
- Enjoy up to $1,000 in statement credits on select purchases, including tech and wireless.
- $200 Airline Fee Credit annually, plus additional perks with Hilton.
- 5X points on flights and prepaid hotels booked through AmexTravel.com.
- Earn 1.5X points on purchases at certain business-related vendors, and on purchases over $5,000.
- $695 annual fee.
- Terms apply.
The American Express Blue Business Cash™ Card
Highlights
- Get $250 statement credit after spending $3,000 within the first three months.
- 0.0% intro APR for the first 12 months, with variable APR after.
- Earn 2% cash back on all purchases up to $50,000 annually, then 1%.
- Enjoy Expanded Buying Power, allowing you to spend beyond your credit limit (conditions apply).
- No annual fee.
- Terms apply.
American Express® Business Gold Card
Highlights
- Earn 100,000 Membership Rewards® points after spending $15,000 in the first three months with American Express Gold Card.
- 0% Intro APR for 6 months on purchases eligible for Pay Over Time, then a variable rate applies.
- Earn 4X points on the top two categories your business spends the most on each month.
- Enjoy up to $240 in annual statement credits for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores.
- $295 annual fee.
- Terms apply.
Ink Business Preferred® Credit Card
Highlights
- Earn 90,000 bonus points after spending $8,000 in the first three months.
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories.
- Earn 1 point per $1 on all other purchases.
- Redeem points for cash back, travel, and gift cards, with points worth 25% more when redeemed for travel through Chase.
- No annual fee for employee cards, and they also help you earn rewards.
- Purchase Protection covers purchases for 120 days.
- Member FDIC.
Amazon Business Prime American Express Card
Highlights
- Get a $125 Amazon gift card upon approval for Amazon Business Prime American Express Card holders.
- Earn 5% back on purchases made at Amazon, Amazon Business, Whole Foods, and AWS (up to $120,000 annually).
- 2% back at U.S. restaurants, gas stations, and wireless services.
- 1% on all other purchases.
- No annual fee.
- Terms apply.
Capital One Spark Miles for Business
Highlights
- Earn 50,000 miles (worth $500 in travel) after spending $4,500 within the first three months.
- Earn unlimited 2X miles per dollar on all purchases.
- Enjoy 5X miles on hotels, vacation rentals, and rental cars booked through Capital One Travel.
- Miles never expire, and can be transferred to 15+ travel loyalty programs.
- $0 intro annual fee for the first year, then $95 after.
- Free employee cards, earning unlimited 2X miles on their purchases.
Who Can Apply for a Business Credit Card?
You don’t need to own a physical store, a warehouse, or any other large assets to qualify for a business credit card. As long as you have solid personal and business credit and meet the credit card issuer’s requirements, you can apply for a business credit card, no matter your industry. So, even if you’re self-employed or operate in a less conventional business category, you’re still eligible. Some examples include:
- Sellers on platforms like Etsy, Amazon, or eBay
- Freelancers
- Independent contractors or consultants
- Self-published authors
It’s also not a requirement to be a profitable business or have years of operational history. Most issuers base their approval decision on your personal credit and income.
However, if you’re just starting your business and your personal credit is less than stellar, it might be harder to get approved for a traditional business credit card. Don’t worry, though! You could still qualify for a secured business credit card. These cards provide limited credit access but offer an opportunity to improve your personal credit score. Over time, this can help you qualify for higher-tier business credit cards.
While it’s generally a good practice to establish a formal business entity before applying for a business credit card, it’s not mandatory. You can apply for a business credit card as a sole proprietor as long as you have a reliable method for tracking your business expenses and maintaining accurate records.
What We Need to Apply for a Business Credit Card
When we apply for a business credit card, there are a few key details we’ll need to provide:
- Business Name: If you don’t have an official business name, we can use our personal name. You’ll also need to mention the industry your business falls under.
- Business Structure: You’ll need to tell the issuer whether your business is a corporation, LLC, partnership, or sole proprietorship. If you haven’t set up a formal structure, you’ll likely be considered a sole proprietor.
- Personal Information: We’ll need to give our contact info, along with our Employer Identification Number (EIN) or Social Security Number (SSN). If you don’t have an SSN, you can still apply by providing an Individual Taxpayer Identification Number (ITIN) or other similar info.
- How Long You’ve Been in Business and Your Income: We’ll need to state how long the business has been running and what the annual income is. If your business is brand new and hasn’t made any money yet, you can just report $0 for the time being.
- Personal Guarantee: Most business credit cards require us to personally guarantee the debt. This means that, even if the business folds, we’re responsible for paying off the card.
Understanding Your Business Credit Score
Just as we each have a personal credit score, your business likely has its own credit score, which lenders use to evaluate your financial health. These business scores typically range from 0 to 100 and can vary slightly across different credit bureaus.
Business credit bureaus collect data from a variety of sources, including:
- Banks
- Credit card companies that issue business cards
- Trade organizations
- Vendors and suppliers who provide goods or services on credit
Knowing How Your Issuer Reports
To start building a distinct credit history for your business, it’s key for us to choose a credit card issuer that reports activity directly to the business credit bureaus—Dun & Bradstreet, Equifax, Experian, or FICO® SBSS. These bureaus track the creditworthiness of businesses and provide this information to lenders. It’s reassuring to know that most business credit card issuers report to at least one of these bureaus, ensuring your efforts to build credit are noticed.
Tips to Improve Your Business Credit Score
Maintaining a healthy business credit score is just as crucial as looking after our personal credit. Here are some ways you can improve and maintain your business credit score:
- Pay your bills on time—and whenever possible, pay them early. This is the single most impactful factor in your credit score.
- Avoid taking on too much debt. Being strategic about borrowing will benefit your credit score in the long run.
- Consider forming a formal business entity, like an LLC or corporation, to help protect your personal credit and boost your business’s credibility.
- Regularly review your business credit reports for errors, especially before applying for new credit. This way, you can ensure everything is in order.
How We Can Compare Business Credit Cards
When it comes to picking a business credit card, one of the first things we need to think about is the type of rewards we want to earn. There are several options out there, from cash back to points and miles, but it’s important to understand that each credit card issuer structures their rewards differently. Let’s break down the main types:
Cash Back Cards: These are usually pretty simple. With cash back cards, we earn a percentage of what we spend—typically somewhere between 1% and 5%. The best part? Many of these cards focus on categories we use regularly, like office supplies, shipping, and advertising. If you’re looking for a straightforward way to get money back on daily business expenses, this could be a good fit.
Rewards Cards: These cards reward us with points or miles for purchases—whether it’s tech equipment, software, or cloud services. The cool thing about rewards cards is that we can trade those points or miles for travel, products, or sometimes even cash or gift cards. If your business needs to make frequent tech purchases or travel bookings, this might be a great option.
Co-Branded or Loyalty Cards: If your business frequently works with a certain brand—say, a hotel chain or an airline—you might want to consider a co-branded loyalty card. These cards offer extra benefits and discounts when we stay loyal to specific brands. For example, you can get perks like priority boarding, free luggage, or discounts when using the brand’s services.
To figure out which rewards might benefit us most, let’s take a look at the common expenses your business incurs. Here are some categories to consider:
- Air travel
- Hotel stays
- General travel and entertainment
- Fuel
- Telecommunications (mobile phones, cable, internet, etc.)
- Shipping and mailing
- Computer hardware and software
- Office supplies
Weighing the Sign-Up Bonus and Annual Fees
When we’re comparing cards, one of the first things we’ll see is the sign-up bonus. Issuers often offer big bonuses to encourage new sign-ups. These bonuses can make a noticeable impact on our decision, as they often provide significant value early on.
As for annual fees, they can range widely. Some business credit cards charge high fees, sometimes even $550 or more, while others don’t charge an annual fee at all. For those that do, some issuers might waive the fee for the first year, or they may even offer a credit to offset the fee if you use the card enough. We’ll need to consider whether the fee is worth the perks and rewards the card offers. A quick cost-benefit analysis should help us decide if that annual fee is worth the rewards we’ll earn in return.
Considering Extra Cards for Employees
If you have employees who need access to the company card, you’ll want to check if the card issuer charges for additional cards. Some issuers offer extra cards for no additional cost, while others may charge a fee per card. If extra cards are needed for employees, this can add up, so it’s important to know the fine details before making a choice.
Looking at Extra Features
Beyond the rewards and fees, we also need to consider other features that could be valuable for our business. For example:
- Foreign Transaction Fees: Some cards impose up to a 3% fee on purchases made in foreign currencies. If your business involves international travel or global suppliers, it’s worth looking for a card without this fee.
- Cardholder Benefits: Most business credit cards offer perks that help make our lives easier—things like roadside assistance, extended warranties on purchases, and travel insurance. Many cards also come with useful management tools to help us track spending, organize expenses, and simplify tax reporting.
By comparing these factors—rewards, sign-up bonuses, fees, and added benefits—we can make an informed decision on which business credit card best fits the needs of our business.
