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Business credit cards have many virtues. This includes helpful expense tracking tools as well as the ability to customize employee's spending limits and earn rewards on what they buy. But business credit cards aren't covered by the CARD Act so they don't benefit from its many protections, including the ban on arbitrary interest rate increases. |
Yes, most major credit card companies retain the right to jack up the cost of business card debt whenever they want. And that is even more problematic than you might think, seeing as most issuers hold users personally liable for debt. Many also relay account information to users' personal credit reports. That is why it's best to use a business rewards card for everyday spending and a 0% consumer card for purchases that will take months to repay.
And with that in mind, WalletHub compared both types of cards (1,000+ in total) in search of 2017's Best Business Credit Cards. You can find their selections (some of which come from WalletHub partners) below. Business credit cards have many virtues. This includes helpful expense tracking tools as well as the ability to customize employee's spending limits and earn rewards on what they buy. But business credit cards aren't covered by the CARD Act. So they don't benefit from its many protections, including the ban on arbitrary interest rate increases.
By: John Kiernan, Credit Card Editor
Finally, just to recap, WalletHub's picks for the market's best small business credit cards are in the table below:
Category |
Card Name |
Initial Bonus |
Ongoing Rewards |
Annual Fee |
| Best Business Credit Card Bonus |
Ink Business Preferred [SM] Credit Card |
$1,000 |
1 to 3 points per $1 |
$95 |
| Best Cash Back Business Credit Card | Capital One® Spark® Cash for Business |
$500 |
2% cash back |
$59 ($0 first year) |
| Best Travel Business Credit Card |
Club Carlson Business Rewards Credit Card |
~$500 |
1 to 10 points per $1 |
$60 |
| Best 0% Credit Card for Business Purchases | Citi® Diamond Preferred® Card |
0% for 21 months |
N/A |
$0 |
| Best Credit Card for Business Balance Transfers | Chase Slate® |
0% for 15 months |
N/A |
$0 |
| Best Business Credit Card for Fair Credit | Capital One® Spark® Classic for Business |
N/A |
1% cash back |
$0 |
| Best Business Credit Card for Bad Credit | Wells Fargo® Business Secured Credit Card |
N/A |
1.5% cash back |
$25 |
If you're not sure which offer is the best business credit card for your company's needs, sign up for a free WalletHub account. We'll give you a personalized recommendation based on your latest credit score and top financial priorities.
By: Odysseas Papadimitriou, WalletHub CEO
A business credit card can obviously be used both as a transaction vehicle, i.e. to make purchases, track spending, etc. and to fund a small business. However, thanks to a credit card law that became effective in February 2010, a personal credit card is actually the best credit card for small business spending that will lead to an end of month balance.
In addition to supplementing the consumer credit card bill of rights, this law made it illegal for credit card companies to apply increased interest rates to existing balances held on personal credit cards unless you are at least 60 days delinquent. This makes business credit cards, which were excluded from the law's protections, riskier to use for this purpose since the interest rate can change at any time.
As a result, even the best business credit cards should only be used for purchases that you can pay for in full by the end of the month.
Do business credit cards with no personal liability exist?
No. A small business credit card with no personal guarantee is merely a myth. Unless your company is very large, credit card issuers will hold both you and your business liable for any unpaid balances no matter what kind of card you're using. In other words, even the best small business credit card will not protect you personally.
This is why you will be required to provide your Social Security Number (SSN) when applying for any of the products listed on this page. It's also why using a personal credit card for business purposes does not expose you to additional liability.
Does my business's credit standing matter?
It does, but your personal credit standing usually matters even more. Since you are personally responsible for the use of a business credit card, banks typically focus on your personal credit history which is usually longer than that of your business to assess your risk.
So while many new business owners believe they must get business credit cards for new businesses, you should actually focus on finding the best business credit card that you can qualify for based on your personal credit score.
By: John Kiernan, Personal Finance Editor
What is a good business credit card?
It's all about rewards and fees with business credit cards given that it's risky to carry a balance from month to month with business plastic. And business credit cards tend to be slightly more rewarding than their personal counterparts while the fees are fairly similar. So, you can consider a good business credit card to be an offer that gives you more than 1.02% cash back or 1.17 points/miles per $1 spent, which are the averages for general consumer rewards cards, according to to WalletHub's latest Credit Card Landscape Report. And those rates need to be even higher if there's an annual fee.
With that being said, the definition of a good business credit card varies based on your credit score. The higher your score, the more overall rewards value (with fees factored in) you should expect.
What is a corporate credit card?
Corporate credit cards are those provided by large companies to their employees for work related expenses. In other words, someone with a corporate credit card is generally an authorized user on his or her company's business credit card account. A corporate card usually displays the names of both the company and the individual cardholder.
You can read more about corporate credit cards in this WalletHub guide, available at:
https://wallethub.com/edu/business-credit-card-guide/25559/
What is the purpose of a business credit card?
The purpose of a business credit card depends on the company using it. Business credit cards are best known for lucrative rewards in popular business spending categories as well as for helpful expense tracking tools. Some entrepreneurs also use credit cards to finance company expenses, but it's better to use a general consumer 0% credit card for that.
Thanks to an imbalance in user protections, credit card companies can jack up the rates on existing business credit card balances at any time, whereas a personal account must be at least 60 days delinquent. Plus, using a personal credit card for business will not increase your liability, as even business credit card users are personally liable for unpaid balances.
How do you build credit for a business?
Building credit for a business is the same as building your personal credit. Business credit card issuers base approval decisions on applicants' personal credit worthiness and generally hold account owners personally liable for unpaid balances. That's because a small company is considered an extension of the owner's personal finances, and that's why business credit card applications require a Social Security number. You can learn more about building business credit from WalletHub's guide on the subject.
Ask the Experts:
To learn more about business credit cards, including how to spot the best offers and avoid common mistakes, we posed the following questions to a panel of small business experts. You can find their pointers and insights, as well as their bios, below.
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Felipe G. Massa Assistant Professor of Management and |
What do the best business credit cards have in common?
It is challenging to give advice on what constitutes the best business credit card because different types of businesses can have very different spending patterns. Some businesses purchase a lot of office supplies, others have traveling sales people that care about hotel reward programs.
As an owner, think carefully about what your biggest and most common expenses are and pick a card that fits your needs. In short, the best business credit cards are
the ones that fit your particular business.
Is a personal credit card ever the best credit card for business use?
Some companies offer reimbursements to employees after they spend on work related expenses. If you are an employee, make sure that you trust that the company will pay you
back, keep records of all your expenses, pay your credit card right away, and consider using a card that gives you great rewards.
Do you expect the best business credit cards on the market to become more or less attractive over the next 12 months?
Over the next several months, the Federal Reserve is expected to raise interest rates, the rate at which the financial institutions that typically issue credit cards borrow. Expect that hike to eventually make its way to any variable interest rate loan you may have. This includes any outstanding credit card debt. So, focus on paying down your variable interest rate debt obligations and keep an eye out for 0% APR cards that can help you weather the upcoming fluctuations.
Do any issuers in particular have a reputation for offering the best business credit cards?
As a small business owner, keep an eye out for cards that target businesses, e.g., Capital One Spark, Chase Ink, Citi Costco. Begin by comparing fees and APRs, but don't forget to include potentially hefty sign up bonuses in your calculation. The calculation gets more complicated when considering rewards. Look out for how much you can earn, i.e., annual caps, how easy it is to turn rewards into usable currency, and other fine print.
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Gregory L. Stoller Senior Lecturer in the Questrom School of Business |
What do the best business credit cards have in common?
The best credit cards provide programs which extend beyond the use of the card itself. Like so many other products and services, customers want to feel like they're supporting a brand and the credit card company (issuer) wants to maximize the "lifetime value of a customer." Some of these services might include consumer perks like:
1) Loyalty points,
2) Travel/dining services,
3) Flexible payment plans,
4) Co-marketing offers from other companies.
However, within the business realm, what's going to be equally important is the opportunity to obtain economies of scale from an entire company using the same card and well beyond. From the issuer's perspective, once the ink dries from the signed contract they will immediately inherit a captive market of known customers.
What tips do you have for someone looking for the best business credit card?
Capitalize on the size impact your business brings to the table re: the issuer:
1) Negotiate lower, or entire removal of, annual fees,
2) Reduction in late fees/interest depending on the business' cash cycle,
3) Better purchasing power for airline/hotels,
4) Concierge type services for business travel/dining.
Is a personal credit card ever the best credit card for business use?
I would advise against this as it potentially increases reimbursement and audit paperwork. Additionally, the company never receives the benefit of dollars charged since the "company card" wasn't officially used.
Do you expect the best business credit cards on the market to become more or less attractive over the next 12 months?
The challenge with credit cards is that on a certain level, they're a commodity and especially so from the customer's perspective. But, that's where a creative issuer can add value, especially in an era where margins seem to be shrinking every year across nearly all industries.
Make a customer want to use your card so they view it as a unique "relationship," and not just a routine transaction. People don't view their business attorney or accountant as being a commodity; these are likely multi-year relationships which are hard to duplicate or transfer to like firms. Offer businesses services or perks so enticing that switching costs will become a significant barrier for the business.
Do any issuers in particular have a reputation for offering the best business credit cards?
American Express seems to be the standard for business cards, especially its Platinum Line. They're a full service offering, both on and off line, and with non-expiring Reward Points. But, like everything else in business, nothing ever comes for free. Their annual fees are high but I always feel like AMEX has incredible value add. That being said, many other issuers like MasterCard and Visa are regularly trying to close that gap since they're perceived as more "main stream" issuers, even for business use.
