Do You Need a Business Credit Card?

1. Do I need a business credit card for my small business?
2. Can you use a regular credit card for business?
3. When would a business need a credit card?
4. Can I use my personal credit card for my LLC?
5. What credit score is needed for a business credit card?
6. How do you get approved for a business credit card?
7. Do business credit cards check personal credit?
8. What's the difference between a business credit card and a personal credit card?
9. Is a business credit card based on personal credit?

Do I need a business credit card for my small business?

While you might think that your business is in the early days and you don't need a separate credit card, business credit cards can provide important benefits to your company, including rewards you can use for virtually free travel, expense management, and credit to grow your business.

Can you use a regular credit card for business?

Small-business owners may be able to use a personal credit card to run their business, but a business credit card could have special perks and features that you don't want to miss. Some business owners use a personal card as their “business card” without a problem.

When would a business need a credit card?

Separate business and personal expenses

One of the most important reasons to get a small business credit card is that it keeps your business and personal expenses separate and allows you to track your business spending. This makes record-keeping a lot easier come tax time.

Can I use my personal credit card for my LLC?

Yes, it's possible. In fact, there are certain benefits to choosing a consumer credit card over a business card. The most compelling reason is the Credit Card Act of 2009. Among other things, it prevents credit card companies from unexpectedly raising interest rates and charging excessive fees.

What credit score is needed for a business credit card?

Generally, the best small-business credit cards require a score of 670 or higher. While you might be able to qualify for a card with a lower score, you'll likely pay a higher interest rate or earn fewer rewards. When it comes to getting a small-business loan, banks have higher approval requirements.

How do you get approved for a business credit card?

Apply for a business credit card

1. Legal business name.
2. Business address.
3. Type of business.
4. Business phone number.
5. Tax identification number.
6. Annual business revenue.
7. Years in business.
8. Monthly business expenses.

Do business credit cards check personal credit?

When you apply for a new business credit card, it typically shows up on your credit reports as a hard inquiry, regardless of how it reports afterward. This could temporarily ding your credit, but it doesn't necessarily indicate the issuer will report the card's activity to consumer credit bureaus.

What's the difference between a business credit card and a personal credit card?

Personal credit cards generally don't offer reports that are as detailed. Small-business credit cards make tracking expenses easier in other ways, too. For example, most small-business cards offer free employee cards with customizable spending limits. On personal cards, such a feature is harder to find.

Is a business credit card based on personal credit?

When you apply for a business credit card, the card issuer may consider both your business's track record and your personal credit. This could include running a hard credit check on your personal credit, which could drop your credit scores by a few points.