Credit News and Advice

Business credit card FAQ

This collection of frequently asked questions about business credit cards is designed to help you decide whether a business credit card is right for you and help you with the selection of and application for a business credit card. Questions addressed include the difference between consumer and business credit cards, what you need to apply for business credit, and how carrying a business credit card affects your credit and the credit of any employees you also put on the account.

What is the difference between business credit cards and consumer credit cards?

Business credit cards offer unique features that benefit small business owners that personal credit cards do not. These include: quarterly and annual itemized statements, rewards on things businesses use most like office supplies and travel, and the ability to issue employee cards with specified spending limits.

Do I need to have a business tax ID to apply for a business credit card?

No. You can apply for a business credit card using your own social security number as your tax ID.

Do business credit cards impact my personal credit score?

Yes. Unless you have established business credit, your business credit card will be tied to your personal credit history, and the failure to manage your business credit card account responsibly could negatively impact your personal credit score.

I am just a freelancer or sole proprietor. Can I get a business credit card?

Yes. Anybody can apply for a business credit card, even if you do business in your own name.

I have bad credit. Will I be approved for a business credit card?

Business credit cards typically require a good to excellent personal credit history. It is unlikely that you will be approved for a business credit card if you apply using your social security number and you have a poor personal credit history.

An employee of mine has bad credit or no credit. Can I get an business credit card issued for that employee?

Yes. Employee credit cards are issued under your account and will not need to be approved for the credit card individually. If they fail to use the credit card responsibly, however, it can affect both their credit history and yours. If you know you have an employee with credit problems, use the employee spending limit and individual statement features most business credit cards offer to carefully monitor their spending.