Business credit cards can be helpful for small business owners looking for ways to organize business records, manage business expenses or benefit from perks offered by credit card issuers, such as airline miles or redeemable points for cash.
Opening a business credit card
Opening a business credit card is much like opening a personal credit card. Initially, you will likely have to supply personal information, including your Social Security number. Approval is based on creditworthiness.
Even a startup business owner with little revenue may get approved for a business credit card if they meet creditworthiness requirements.
Perks of a business credit card
One major reason to consider a business credit card is to take advantage of rewards, often in the form of travel rewards or cash back, based on the amount you spend. In choosing a business credit card, consider how you might best be able to use the card’s benefits.
Other benefits to getting a business credit card
Business credit cards have a few other advantages. They can help you keep your business and personal purchases separate and allow you to track business spending more easily. Also, if you have an unusually large expense, such as an expensive piece of equipment, some business credit card issuers may temporarily increase your credit limit, if you request it and if you have a history of paying your card back on time.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
