What Do I Need To Apply For A Small Business Credit Card
A small business credit card application asks for some of the same information as a personal credit card application. But much of the information you’ll need to apply for a business credit card is different. You may need to provide:
- Your business’ legal name
- The industry that best suits your business
- Your annual business revenue
- Your personal total annual income
How Credit Card Interest Works
When you borrow money from a bank, you usually have to pay interest, which is the cost to you of using the bank’s money. Credit cards are unusual in that there is a way to avoid interest entirely. Most cards offer a “grace period”: If you pay your balance in full on each statement â meaning you don’t roll over any debt from one month to the next â you won’t be charged interest. If you carry debt, though, you’ll be charged interest. Interest works like this:
Your card issuer sets your interest rate. In general, the better your credit, the more likely you are to qualify for lower rates, but credit card interest rates tend to be significantly higher than rates on other consumer debt.
Your interest rate is listed on your credit card statement. It’s expressed as an annual rate, but in most cases it is charged on a daily basis. So if your interest rate is 17.5% a year, it’s actually charged at about 0.048% per day.
When your billing cycle ends, your issuer calculates how much interest you owe. Your interest charge is based on your daily balances and your daily rate.
The interest charge is included in your next month’s minimum payment. Credit card interest generally does not compound â meaning, it does not get added into your balance. You have to pay your full interest cost each month. Read more about minimum payments.
Â» MORE:How credit card interest is calculated
Best Business Credit Cards Faq
Finding the best credit card can be tough. But youve got the knowledgeable WalletHub community on your side. We encourage everyone to share their knowledge while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.
To get a business credit card, you must provide your Tax ID Number or Employer ID Number along with your Social Security number on the business credit card application. To qualify, a business credit card applicant must also be an owner, officer or partner of a business, which may include sole proprietorships, independent contractors and non-profits, in addition to corporations, partnerships and LLCs. Then, if you get approved for a business credit card, your card will list your company’s name in addition to your own.
Below, we’ll you guide you through how to get a business credit card, step by step, then highlight the various requirements that small business owners typically have to meet in order to get a credit card in their business’s name.
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Tips On How To Use Small
- Establish spending guidelines to ensure you dont take on high-interest debt using your business credit card.
- Outline what constitutes a business expense, set your own spending limits outside of the designated credit limit and have a system in place for tracking purchases to ensure adherence to the rules.
- If your business is made up of multiple employees, have a clear policy in place to decide who will receive an employee card. Most importantly, communicate all policies and guidelines across the business.
- Use your card responsibly, but dont forget to actually use it. Especially if your card charges an annual fee, youll want to ensure youre maximizing your rewards and getting the most value out of your spending.
- Stay diligent in keeping your personal expenses separate from your business expenses to simplify bookkeeping.
- Dont let your cash back or rewards points expire. Redeeming your rewards regularly can ensure that cash back or points value is invested back into your business rather than going to waste.
Capital One Spark Cash Plus
Our pick for: Cash back flat-rate rewards
The Capital One Spark Cash Plus is an excellent option for business operators whose expenses don’t fall into the bonus categories on other business credit cards. You get a high, flat rewards rate on every purchase, with no limit to how much you can earn. Just make sure that you can pay off your spending in full each month, as this is a charge card that doesn’t let you revolve a balance. Read our review.
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Need Small Business Solutions
Annual interest rates, fees and features are current as of August 17, 2021 unless otherwise indicated and subject to change.
All trade-marks are the property of their respective owners. For trade-mark ownership details, see www.tdcanadatrust.com/aeroplancards
The Aeroplan program is a loyalty rewards and recognition program operated by Air Canadas subsidiary Aeroplan Inc. Visit Air Canada for complete terms and conditions of the Aeroplan program.
1 The business and business owners are jointly and severally liable for all charges made to each TD Business Card Account.
The up to $1,450 value is based on the combined total value of: The actual redemption value of the Buddy Pass as of May 31, 2021 ; The annual fee waiver for the first year , plus one additional cardholder ; Free first checked bags for two people, on a round-trip flight in the first year ; Usage of the Nexus statement credit benefit at an exchange rate of approximate $1.25 USD as of May 31, 2021 ; and that the 30,000 Aeroplan points upon approval of your TD Aeroplan Visa Business card are redeemed for a flight reward , based on over 70% of current Aeroplan cardholders receive a value of $0.02/points or more when redeeming for a flight as of May 31, 2021. Redemption calculation is based on actual flight redemptions made by cardholders between the period of Nov 8, 2020 – May 31, 2021; and Maple Leaf Lounge One-Time Guest Passes in North America .
All trade-marks are the property of their respective owners.
Why You Can Trust Bankrate
At Bankrate, we have a mission to demystify the credit cards industry regardless or where you are in your journey and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:
- Meet you wherever you are in your credit card journey to guide your information search and help you understand your options.
- Consistently provide up-to-date, reliable market information so you’re well-equipped to make confident decisions.
- Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you.
At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next.
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Alternative Option: Blue Business Plus Credit Card
Prefer points to cash back? Pick American Expresss Blue Business® Plus Credit Card.
It works almost exactly like the American Express Blue Business Cash Card , but the Blue Business® Plus Credit Card gives you 1 to 2x points on your spending.
With the same APR ranges, instant approval, and free employee cards, either Blue Business card has plenty to offerit just comes down to which kind of rewards youd rather have.
Data effective 04/20/21. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
You may have noticed that the cards above offer big rewards, but those rewards are limited to certain spending categories or amounts. If you want something simpler, Capital One Spark Cash Select for Business has the best flat-rate rewards.
With Capital One Spark Cash Select for Business, you get precisely 1.5% cash back on all your purchases. It doesnt matter if its the first dollar youve spent that year or the fifty-thousandth, if youre buying from an office supply store or a gas stationyou get the same, competitive rate on all your business purchases. Sounds easier than carefully spending at the right places, doesnt it?
Bottom line, if you want plenty of rewards without optimizing your business spending, Capital One Spark Cash Select for Business is the card for you.
What Is The Difference Between A Small Business Credit Card And A Corporate Credit Card
The main difference between the two cards is where the responsibility lies for the cards debt. Additionally, each card has a different credit check process during application.
For small-business owners of credit cards, the business owner is personally responsible for paying the debt. Once youve applied for the card, issuers will check your own personal credit history as well as that of your small business. Thats in addition to a guarantee that you agree to repay any debt.
However, for corporate cards, its the business itself that is responsible. This means that should the company run into financial difficulties; it would not fall on the owner to pay the debt. The credit history for only the business and not the owners is the only requirement for credit checks.
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Should I Get A Business Credit Card
If you spend in concentrated “business” categories — such as office supplies or telecom services — or want to have employee spending on a central credit account, then, yes. You may also appreciate these cards’ business-specific tools like budget trackers and account managers.
If you’re a small business owner, it’s a good idea to keep your business expenses separate from your personal finances — both for tax purposes and to make it simpler to review your spending. But you could just as easily keep your expenses separate, and track them, with a dedicated consumer credit card. As such, the typical rationale for getting a business credit card is to help manage employee cards or earn more rewards from business purchases.
A small-business credit card may not be the best option for a self-employed person, however. Self-employed individuals and sole proprietors may be better served by a consumer-oriented personal credit card from a credit card company — such as a cash-back credit card, travel credit card or student credit card. And a larger business will typically be able to negotiate more preferential and flexible terms with its card issuer within a “corporate” or “commercial” credit card program.
Td Aeroplan Visa Infinite*
If you tend to fly Air Canada when you can, then the TD Aeroplan Visa Infinite could be the credit card for you. This Visa gives you, and up to eight guests flying on the same itinerary, free checked bags on your Air Canada flights. And when booking, as an Aeroplan credit cardholder, you get preferred pricing , too.;
We bet you want to know about the newly revamped Aeroplan plan, too: The earn rate for the card is 1.5 Aeroplan points per $1 spent on gas and groceries. And 1 Aeroplan point per $1 spent on all other purchases. This is a respectable earn rate, since groceries and gas are typically what people spend the most of their money on. You also get great travel insurance, mobile device insurance, purchase security, extended warranty and a Nexus rebate of up to $125.
- Annual fee: $139
- Welcome bonus: Earn up to $1,250 in value in the first year: 10,000 Aeroplan points on your first purchase with the card, another 15,000 more when you spend $1,000 in first 90 days, and more. Must apply by December 5, 2021. Quebec residents, .
- Earn rate: 1.5 Aeroplan points per $1 spent on gas and groceries, 1 Aeroplan point per $1 spent on everything else
- Our favourite features: Free checked bags and Buddy Pass with Air Canada
- Additional benefits: Travel insurance, mobile device insurance, up to $125 Nexus rebate every 48 months
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Who Should Get A Business Credit Card
Business credit cards are, of course, designed for small-business owners. While that might bring to mind an image of someone operating a physical storefront, small-business owners take many shapes. Freelancers, contract workers, eBay merchants, and all kinds of gig workers can qualify for business credit cards.
Business credit cards are useful for small-business owners who want to:
Read more:;Should I get a small-business credit card?
How Do Business Credit Cards Work
Just as a personal credit card extends a line of credit to the individual, a business credit card provides businesses with a line of credit. A business may use its credit card to pay only for expenses associated with running the business.
Having a business credit card allows a business to free up its cash flow while purchasing necessities via credit. Business credit cards are also designed to include special features that specifically benefit businesses, such as organized expense tracking tools and spending controls, along with discounts on internet and other services needed to run a business. For the business traveler, these cards offer a slew of high-end perks from airport lounge access to upgrades. In terms of accounting, its advantageous to have these expenses under one business credit card account.
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Business Platinum Card From American Express
With the Business Platinum Card® from American Express, you earn 1.25 Membership Rewards points for virtually every $1 in purchases.
With this exceptional welcome offer, you can earn 75,000 points when you charge $7,000 in purchases to your Card in your first 3 months of Cardmembership.
You can use your Membership Rewards points in multiple ways:
- Transfer points to frequent flyer programs
- Transfer points to hotel programs
- Redeem points for statement credits to offset any eligible purchase charged to your Card
- And more!
- Access to the Fine Hotels & Resorts program
With this Card you can maximize your cash flow with up to 55 interest free days.
Finally, the Business Platinum Card® from American Express comes with premium insurance: Car Rental Theft and Damage, $500,000 Travel Accident, Emergency medical insurance , Lost or Stolen Baggage, Flight delay insurance and misdirected baggage, Hotel or motel burglary, Purchase Protection® Plan, Buyers Assurance® Protection Plan.
Secured Vs Unsecured Cards
A secured credit card is different from an unsecured card because it requires you to put down an upfront cash deposit that is then used to fund your credit card. This is a common practice for businesses with bad credit and can help you qualify for a credit card when you are turned down for the more traditional types of business credit cards.
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Your Business Is Your Passion We’re Here To Help
- The Discover it® Business credit card helps you streamline your expense management and earn meaningful cash back rewards that never expire; all with .
Your rewards never expire: We will credit your account with your cash back bonus balance if your account is closed or has not been used in 18 months.;See rewards terms and conditions.
Intro purchase APR is 0% for 12 months from date of account opening then the standard purchase APR applies. Standard purchase APR: 12.99% variable to 20.99% variable, based on your creditworthiness. Cash APR: 24.99% variable. Variable APRs will vary with the market based on the Prime Rate. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee: 5% of the amount of each transfer. Annual Fee: None. Rates as of . We will apply payments at our discretion, including in a manner most favorable or convenient for us. Each billing period, we will generally apply amounts you pay that exceed the Minimum Payment Due to balances with higher APRs before balances with lower APRs as of the date we credit your payment.
Do You Need A Business Credit Card That Integrates With Your Accounting Software
For a business, you need to account for all business expenditures. Thats likely part of the reason why youve signed up for a business credit card in the first place. Separating your business and your personal accounts is only the first step to getting your business financials in order. The next step connecting all business accounts to your accounting software.
All major credit cards should connect easily to whatever accounting software your business relies on. Having all transactions automatically reported saves hours of manual entry, as well as reduces the risk of error. It saves the hassle of tracking down every card-holding employee each month.
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How To Get A Business Credit Card