business credit card

5 Reasons to Use a Business Credit Card

Latest posts by Kira Brecht (see all)

It’s a common mistake for business owners. When it comes to paying for business expenses, you still pull out your personal credit card. Don’t sell your business short. A business credit card is a different animal designed specifically to meet startup’s needs.

It’s worth noting, you don’t need to run a multi-million dollar business to qualify for a business credit card. Even if you are running an Etsy business or have a side-gig, you can still qualify. If you are a sole proprietor, independent contractor or freelancer, you can use your Social Security number to apply (rather than a Tax ID number).



Here are five reasons it’s time to retire your personal card for business spending:

  1. Separate your personal credit from your business spending
  2. Establish and improve your business credit score
  3. Interest free float: use 30- or 60-day interest free periods for cash flow lags
    There are business credit cards which let you take up to 60 days to pay with no interest if you pay your minimum due.
  4. Free cards for employees with preset spending limits
    Break free from tedious expense reports. After all, time is money. Get employee cards at no additional cost with The Ink Business Cash℠ Credit Card. This card also allows you to set and change individual spending limits any time. Plus, you’ll earn rewards from their spending automatically.
  5. Earn rewards to grow your business
    You can choose low interest, travel rewards or cash back. What does your business need most?

Do you need to fund startup costs?

Look for a 0 percent intro APR offer. Zero percent intro APR offers are basically no-interest loans for a specific period. Common sense is required, though. You’ll need to make the minimum payment each month. If not, you could rack up penalty fees or even lose your promotional APR period.

Do you travel for work?

Look at cards that offer airline miles and perks. Capital One® Spark® Miles for Business offers one of the best sign-up bonuses right now. Centralize your business spending on one card to quickly build up miles that can take your business far.


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Looking for extra cash to funnel back into your business?

The Capital One® Spark® Cash for Business has a huge one-time cash bonus and you can earn ongoing cash back rewards on every purchase, every day.

Business credit cards offer significantly higher credit limits, longer billing cycles and many valuable rewards that you can use to grow your business. If you are serious about success, using a business credit card is an easy tool that can give your business an added boost.

Content sponsored by LendingTree. 

*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. CompareCards.com may be compensated through a credit card issuer partnership.

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