Business Credit Cards 101

Business credit cards are the first real revolving credit most companies get. Approval usually weighs the owner's personal credit plus the business's basics, and most cards come with a personal guarantee.

Why it matters

Cards sit at the middle of the ladder: more useful than vendor terms, easier than bank lines. Chosen well, they build the business file, smooth cash flow, and separate spending. Chosen badly, they are the most expensive money in the wallet.

Key facts

• Most major business cards check personal credit and require a personal guarantee, even from established LLCs.
• Some issuers report business cards to business bureaus only; others also report to personal - know which before applying.
• Introductory 0% APR periods can fund early inventory or marketing interest-free if paid down on schedule.
• Annual fees are worth paying only when the card's reporting, limits, and rewards beat the free options.
• Maxing a business card that reports personally can hurt the owner's personal utilization.

In practice

1. Before applying, confirm: which bureaus get the payment data, is there a PG, and what is the real APR after any intro period.
2. Start with the bank where the business already banks; relationship history helps.
3. Keep utilization low and pay early; cards are tradelines with rewards attached.