Last Updated: December 2025
Choosing the right business credit card can significantly impact your company’s cash flow, credit profile, and ability to manage expenses effectively. With hundreds of options available from major issuers, understanding how to compare business credit cards based on your specific needs is essential for making an informed financial decision.
Who This Guide Is For (and Who It’s Not For)
This guide is designed for:
- Small business owners seeking their first business credit card
- Entrepreneurs comparing multiple cards to optimize rewards and benefits
- Business managers responsible for evaluating corporate card programs
- Self-employed professionals looking to separate personal and business expenses
This guide may not be suitable for:
- Individuals with significant credit issues (scores below 600)
- Businesses seeking commercial lines of credit rather than credit cards
- Companies requiring complex corporate card programs with 50+ employees
How We Researched This Guide
Our evaluation process involved analyzing current offerings from major U.S. credit card issuers including Chase, American Express, Capital One, Bank of America, and Citi. We reviewed publicly available terms, annual percentage rates, fee structures, and reward programs as of December 2025. We also consulted guidelines from the Consumer Financial Protection Bureau (CFPB) and Federal Reserve regarding business credit products to ensure accuracy and compliance with current regulations.
Understanding Business Credit Cards: The Basics
A business credit card functions similarly to a personal credit card but is issued under your business name and tax identification number. These cards help establish business credit history separate from your personal credit profile, though many issuers still require a personal guarantee from business owners.
Key differences from personal cards include:
- Higher credit limits to accommodate business expenses
- Expense management tools and employee card capabilities
- Business-specific rewards categories (office supplies, shipping, advertising)
- Different consumer protection regulations under the CARD Act
Key Factors to Compare
Interest Rates and APR
Business credit card APRs typically range from 18% to 29% as of late 2025, depending on your creditworthiness. Unlike personal cards, business cards aren’t subject to CARD Act protections, meaning issuers have more flexibility in changing terms. Always review the variable rate disclosure and understand that your rate may increase with market conditions.
Annual Fees
Business cards range from no annual fee to $595 or more for premium offerings. Consider whether the rewards and benefits justify the cost. A $95 annual fee card that earns you $500 in rewards annually represents genuine value, while a no-fee card with minimal rewards might be perfectly suitable for businesses with lower spending volumes.
Rewards Structure
Common business card reward categories include:
- Flat-rate cash back (1.5% to 2% on all purchases)
- Tiered rewards (higher percentages on specific categories)
- Points-based systems (transferable to travel partners)
- Category bonuses (3-5x points on business expenses like advertising or telecom)
Evaluate your actual spending patterns over the past six months. A restaurant owner benefits more from dining rewards, while a consulting firm might prioritize travel and advertising categories.
Sign-Up Bonuses
Many business cards offer substantial sign-up bonuses, sometimes worth $750 or more in rewards. However, these typically require meeting minimum spending thresholds within three to six months. Only pursue bonuses you can legitimately achieve through normal business spending—manufactured spending can violate card terms and create unnecessary financial risk.
Detailed Comparison Table
| Card Feature | No Annual Fee Cards | Mid-Tier Cards ($95-$195) | Premium Cards ($250+) |
|---|---|---|---|
| Annual Fee | $0 | $95-$195 | $250-$695 |
| Typical APR | 19.99%-26.99% | 18.99%-25.99% | 18.24%-24.99% |
| Rewards Rate | 1.5% flat or category bonuses | 2-3x on categories, 1x base | 3-5x on categories, travel perks |
| Sign-Up Bonus | $250-$500 value | $500-$1,000 value | $1,000-$1,500 value |
| Best For | Startups, simple expense tracking | Growing businesses with defined spending categories | High-volume spenders, frequent travelers |
| Employee Cards | Usually free | Free or low-cost | Typically included |
| Additional Benefits | Basic fraud protection | Purchase protection, extended warranty | Airport lounge access, travel insurance, concierge |
Important Risks and Considerations
Personal Guarantee: Most business credit cards require the owner to personally guarantee the debt. This means your personal credit is at risk if the business cannot repay the balance.
Credit Reporting: While some issuers report business card activity to business credit bureaus (Dun & Bradstreet, Experian Business), many also report to personal credit bureaus, especially if you miss payments. Late payments can damage both your business and personal credit scores.
Variable Rates: Business cards often carry variable interest rates tied to the prime rate, currently set by the Federal Reserve. As economic conditions change, your APR may increase even if you maintain perfect payment history.
Foreign Transaction Fees: If your business involves international purchases or travel, compare foreign transaction fees, which typically range from 0% to 3% per transaction.
How to Choose the Right Card for Your Business
Start by analyzing your business spending over the past quarter. Categorize expenses into major groups: travel, office supplies, advertising, utilities, and general purchases. This data reveals which reward structure offers maximum value.
Consider your payment habits honestly. If you carry balances month-to-month, prioritize low APR over generous rewards—interest charges quickly erase any rewards value. The CFPB recommends evaluating the true cost of carrying debt before focusing on reward programs.
Evaluate your business stage. A startup with unpredictable cash flow might benefit from a no-fee card with flexible redemption options, while an established business with consistent revenue can justify annual fees for premium benefits and higher reward rates.
Making Your Final Decision
Once you’ve narrowed options to two or three cards, review the complete terms and conditions—not just the marketing highlights. Look for:
- Grace period length (typically 21-25 days)
- Penalty APR triggers and rates
- Balance transfer options and fees
- Credit limit policies and increase procedures
Apply for only one card at a time. Multiple applications within a short period can negatively impact your credit score and raise concerns with underwriters about your business financial stability.
Financial Disclaimer
This article provides general information about business credit card comparison and should not be considered personalized financial advice. Credit card terms, rates, and offers change frequently and vary based on individual creditworthiness. Always review current terms directly from card issuers before applying. Business credit cards involve financial obligations that could affect both your business and personal credit. Consider consulting with a financial advisor or accountant before making credit decisions for your business.
Frequently Asked Questions
What credit score do I need for a business credit card?
Most business credit cards require a personal credit score of at least 670 (good credit), though some issuers offer cards for fair credit (640-669). Premium rewards cards typically require excellent credit (740+). Your business revenue and time in operation also factor into approval decisions, but issuers heavily weight your personal credit history since most business cards require personal guarantees.
Do business credit cards help build business credit?
Some business cards report payment activity to commercial credit bureaus like Dun & Bradstreet, which helps establish your business credit profile. However, not all issuers report to business bureaus consistently. If building business credit is a priority, confirm the issuer’s reporting practices before applying. Maintaining a strong payment history and keeping utilization below 30% of your credit limit are essential practices regardless of which card you choose.
Should I get a business credit card as a sole proprietor?
Yes, sole proprietors can benefit significantly from business credit cards. These cards help separate business and personal expenses for cleaner bookkeeping and tax preparation, even without a formal business structure. You can apply using your Social Security Number rather than an EIN (though having an EIN is beneficial). The financial separation simplifies tracking deductible business expenses and provides clearer financial records if you’re ever audited.
Can I transfer a balance to a business credit card?
Many business credit cards offer balance transfer options, sometimes with introductory 0% APR periods lasting 12-18 months. However, balance transfers typically carry fees of 3-5% of the transferred amount. This strategy can help consolidate business debt at lower interest rates temporarily, but ensure you have a realistic repayment plan before the promotional period ends, as standard APRs will apply afterward.
What happens if my business closes and I have credit card debt?
If you’ve provided a personal guarantee (standard for most business credit cards), you remain personally liable for the outstanding balance even if your business closes or declares bankruptcy. The debt doesn’t disappear with business dissolution. If facing this situation, contact your card issuer immediately to discuss payment options, hardship programs, or structured payment plans before defaulting, which severely damages your personal credit.