A business credit card is a line of credit issued to a small business or sole proprietorship. They allow business owners to keep their business and personal expenses separate. By doing so, record keeping is easier, especially at tax time.operate just like a personal credit card, with the exception that the card may have a different rewards structure or offer different protections.The two most common types of business credit cards are either small business cards or corporate cards.
Any business that intends to charge purchases should get a business credit card. Keeping personal and business expenses separate is a good rule-of-thumb for accounting purposes. Additionally, getting—and responsibly using—a business credit card helps to build your business credit history which can be useful when applying for future loans or other financing.With the many different types of credit cards available, picking one for a business can be a lengthy process.
. Business credit cards may also report to business credit agencies and offer different rewards and benefits than personal credit cards.Whether it’s a full-fledged endeavor or a side hustle from your corporate job, it’s still possible to get approved for a business credit card. That’s because business cards typically rely on your personal credit score as one of the determining factors for approval.
Be aware that with nearly all small business cards, just like with a personal credit card, you are personally liable for any debts accrued to the card. In other words, if your business fails, you’re still responsible for any debt left on the card.When you apply for a business credit card, your approval will be based on your personal credit score. It also means you’ll be personally liable for any debts accrued on the card even if they’re from your business and that business fails.