Business Credit Cards

Business Credit Cards

Published on January 5, 2016 9:37 am

business applicationWhether you have a startup or are growing your established company, having the right business credit card makes a world of difference.
Q: Is it possible to apply without a personal guarantee?
A: Unfortunately not if you're a newer business. At this time all major issuers require your Social Security number as a personal guarantee. In order to qualify under a federal tax ID alone, typically the company must already have a strong credit history, annual cash flow in the millions, and 3+ years in operation.

Featured Business Credit Cards with Rewards

(reviews are constantly updated with featured offers from our advertising partners)

What is the best choice for you?
There is no "one size" fits all answer. Which of these qualities are most important to you?
  • Rewards: Did you know that the rewards offered on business cards are actually more generous than regular cards? They typically give you more cash back, points, and miles.
  • Low Interest: If you anticipate carrying a balance, then of course low interest cards are what you want. Unfortunately, low rates disappeared during "The Great Recession" and have yet to return. However, some still offer good introductory rates.
  • Annual Fee: There are plenty of no annual fee cards to apply for. However those which are affiliated with an airline or hotel, as well as the premium charge cards, usually have an annual fee.
  • Benefits: Many business credit cards include perks such as extra travel benefits, discounts programs, and detailed billing (which can be a lifesaver for accounting and taxes).
  • Customer Service: Being a business owner is stressful enough as it is, so the last thing you want is the stress of a customer service rep in India! Issuers like AmEx and Chase almost always use American based call centers for their business cardholders.
Q: What can a new business apply for?
A: Assuming you have qualifying personal credit, any of the above can be candidates for you. However it's important to remember that you will be personally responsible for any debts incurred (just like you would with a normal credit card). So please keep that in mind.

Q: How about newer small business with more than one employee?
A:Unfortunately a personal guarantee will still be required, so your options remain the same. However, you will probably want one that offers additional cards for free (to give to authorized users). Most include this as a free option, with the exception of the premium cards that have annual fees.

Q: What kind of information will the application ask for?
A: If you've never filled out a business credit card application before, you may be surprised to see the information they ask is not much different than a personal card. In addition to your personal information, you will be asked for your business name and phone number. If you are a well-established, profitable company applying under the business federal tax ID alone, then you will need to supply that on the application.

Q: How long do the applications take to process?
A: If applying normally under your Social Security number, the time it takes to process your application is similar to what it would be for a normal credit card. When you submit application using only a business tax ID, the processing time will likely be longer (with how conservative banks are these days, expect them to go over everything with a fine-tooth comb).

Q: Which business credit cards have the best customer service?
A: The offers listed in the sponsored rankings and reviews above are known for delivering exceptional customer service (and if your experience differs, please let us know on our message board). That being said, American Express and Chase are two which are known to especially stand out from the crowd.

Editorial Disclosure: The editorial content on this page is not provided by any bank, credit card issuer, airline or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.