Best Business Credit Cards of February 2023

When it comes to credit cards for your business, what do you look for? At The Ascent, our experts look for low or no-fee cards with a low APR in our best business credit cards with rich rewards and perks. In our list of business credit cards, you'll see the leading options for business owners interested in cash back, travel rewards, and 0% intro APR financing offers.

When you shop for business credit cards, you'll probably have questions. What makes a business card different from a regular credit card? Do you need a business credit card? How can you know if you'll qualify for this type of credit card?

Fortunately, business credit cards aren't that complicated. It's worth learning how they work and what makes them special, because their perks can be invaluable for businesses large and small.

Credit cards for business use typically have a few features that personal credit cards don't, including higher credit limits, more travel perks, and higher limits on the free insurance you get when you make a purchase.

Here's how business credit cards differ from personal cards:

• Business-focused rewards: Business cards often pay out bonus rewards for spending in bonus categories. Some offer bonuses for spending on phone bills, office supplies, online advertising, and other common business expenses.
• High credit limits: Businesses simply have larger spending needs than individuals, so business credit cards are typically high-limit credit cards. The average person might not need to swipe a personal card for a $25,000 purchase, but many businesses pay large bills from suppliers and vendors.
• Perks for business users: Some cards offer features for frequent fliers, like credits to pay for TSA PreCheck or Global Entry, airport lounge access, and increased travel insurance. They also typically offer no foreign transaction fees, so you won't have to worry about that added cost when you make purchases with companies who process payments through a foreign bank.
• Credit bureau reporting: Business cards report to business-specific credit scoring databases, helping you build credit as a business.

There are several features to look for in a business credit card, including:

• High rewards rate: You can find cash back and travel rewards business credit cards. With either option, you should look for a card that earns a high flat rate on purchases, or one that earns extra in the categories where your business spends quite a bit.
• 0% intro APR offer: If you have major business expenses coming up that you need to finance, a business card with a 0% intro APR is a great choice. You can pay off those expenses interest-free until the end of the card's intro period. Note that the interest rate will increase after the intro offer expires, so it's imperative to pay down your balance before that happens. For expenses that will take much longer to pay off, it's worth checking whether a business loan or credit card will save you more money.
• Expense tracking: Many business cards include detailed information on how your business spends money. This can help you budget and ensure you're using money wisely.
• Free employee cards: If you have employees or plan to hire employees in the future, then you may want the option to issue employee credit cards free of charge. Also look for an option to adjust credit limits on employee cards so no employee can max out your card account.
• Big sign-up bonus: Although a sign-up bonus isn't exactly a must on a business credit card, it's nice to earn a large chunk of cash back or travel points shortly after getting your card.

Want the biggest sign-up bonus? Check out The Ascent's guide to the best sign-up bonus credit cards.

What people often don't realize about business credit cards is that you can get one surprisingly early in your business's lifespan, and it's smart to do so.

In fact, you don't need a registered business to apply for a business credit card. Card issuers let you apply as a sole proprietor, using your Social Security number. The business also doesn't have to be profitable yet. Your application can get approved based on your personal income. When you apply for a business credit card, the card issuer will look at your personal financial information and credit history.

While there are many benefits to business credit cards, the primary reason it's so important to have one is to keep your personal and business expenses separate. It's harder to track spending separately for yourself and your business if all your expenses are mixed together on the same card. During tax season, you'll be happy you got a business credit card when you can review your card's expense reports for deductions.

The way to compare the best business credit cards is to first figure out what benefits you need most.

For the typical business owner, rewards are a priority, since they earn you a percentage back on your business expenses. If that's the case for you, then here's how you would choose a business credit card:

• Decide whether you prefer a cash-back card or a travel rewards card.
• Check the rewards rates (how much a card earns back on each purchase).
• Review any spending caps on bonus rewards. For example, a card may earn 5% back on the first $25,000 you spend per year in select bonus categories. That spending cap may not be a problem for many businesses, but it could if your business spends $5,000 or more in that category each month.

Depending on your and your business's needs, you may prioritize something different in a business credit card. If you need to borrow money to finance an expense, for instance, then you should compare cards based on intro APR offers. If your credit isn't the best, then look for business cards you can get without a good credit score.

Business credit cards offer a lot of spending power, but that comes with a lot of responsibility, too. Here's a checklist to help you decide if a business card is right for you.

• You own your own business. At the risk of stating the obvious, owning a business is a prerequisite to getting a business credit card. It doesn't have to be a big business -- it could just be a side gig -- but you should have some reasonable need for a business card to apply for one.
• You want to establish a business banking relationship and credit. This is one of the best reasons to apply for a business card. Having a relationship with a major bank can be useful if your business will need other forms of financing at a later time to purchase things like cars, equipment, or real estate.
• You won't carry a balance. There are very few businesses that can afford to pay double-digit interest rates to borrow money. Credit cards are one of the most expensive sources of financing, so credit cards are best used as a payment method, not a financing method.
• You're willing to be personally liable. Charges you make to a business credit card can be a personal liability, and though many business cards will not report good payment history to the personal credit bureaus, they will report it if your account is seriously delinquent. For this reason, a business credit card is not usually a good solution for building personal credit history.