What Is a Business Credit Card?

A business credit card is a line of credit issued to a small business or sole proprietorship. They allow business owners to keep their business and personal expenses separate. By doing so, record keeping is easier, especially at tax time.

How Do Business Credit Cards Work?

Business credit cards operate just like a personal credit card, with the exception that the card may have a different rewards structure or offer different protections.

How Is a Business Credit Card Different From a Personal Credit Card?

The main way business credit cards differ from personal credit cards is in their lack of consumer protections like those in the CARD Act. Business credit cards may also report to business credit agencies and offer different rewards and benefits than personal credit cards.

Can I apply for a business credit card without a business?

Even if you don’t have a business yet, whether it’s a full-fledged endeavor or a side hustle from your corporate job, it’s still possible to get approved for a business credit card. That’s because business cards typically rely on your personal credit score as one of the determining factors for approval. If your FICO score isn’t as good as your business idea, there’s a small handful of secured credit cards for businesses that can help you improve your credit while you build your brand.

Be aware that with nearly all small business cards, just like with a personal credit card, you are personally liable for any debts accrued to the card. In other words, if your business fails, you’re still responsible for any debt left on the card.