Are business credit cards worth it?

Compare the multiple advantages of business credit cards and see if using one is right for you.

Updated

A business credit card is designed to be used by businesses that want to separate private spending from business spending. By using a business credit card you can easily manage your company budget, track business purchases or set employee spending controls.

Business cards operate a lot like personal credit cards except that their interest rates, fees and rewards structures are tailored to the needs and operation of a business as opposed to those of an individual. Business cards can provide you with the flexibility and efficiency you need to operate your business, regardless if you are a sole proprietor or managing several employees.

American Express AIR MILES Gold Business Card

American Express AIR MILES Gold Business Card

19.99 % APR

Purchase interest rate

Eligibility criteria, terms and conditions, fees and charges apply

American Express AIR MILES Gold Business Card

Apply today and receive 150 AIR MILES® when you spend $1,000 within the first 3 months of card membership. Terms apply.

  • Purchase interest rate: 19.99%
  • Cash advance rate: 21.99%
  • Annual fee: $0
  • Credit rating: Fair, Good, Excellent
  • Minimum age: Age of majority in the province/territory of residence
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What are the pros and cons of business credit cards?

Business credit cards can be a rewarding tool for your business but there are some important factors to consider before applying for one. Check out the pros and cons below.

Pros

  • Simplify bookkeeping. Get separate credit card statements for your personal spending and your employees’ spending and easily track your business expenditures. Some card issuers even offer a total expense management system with their business cards.
  • Build credit. Use your card responsibly and build credit for your business. This can be extremely beneficial if you are looking to secure loans for your business in the future.
  • Earn rewards on business spending. Earn cash back or points on purchases such as shipping, office supplies, gas or travel. Figuring out which type of rewards best suit your business is a strategic thing to do before applying.
  • Enjoy a higher credit limit. Get a higher credit limit compared to a personal credit card. A higher limit can allow you the freedom to make larger purchases for your business without needing to apply for a loan.
  • Take advantage of a generous signup bonus. Earn a business-level signup bonus compared to a personal card. Keep in mind, spend requirements to earn the bonus are also higher.

Cons

  • Personal guarantee required. In most cases, the business owner is personally liable for paying the card’s balance if the business itself cannot do so. Luckily, there are business card options that don’t require a personal guarantee.
  • Higher annual fees While a few cards offer no annual fee, most business cards carry an annual fee from $99 to $499.
  • Possible impact to personal credit. Some banks report all your business card activity, while others report only delinquencies. This can have a serious impact on your personal finances if your business fails.

Compare business credit cards

Name Product Purchase Interest Rate Cash Advance Rate Annual Fee Minimum Income Welcome Offer
American Express Business Edge Card
19.99%
21.99%
$99
N/A
Earn up to 42,000 Membership Rewards points in your first year. Earn a Welcome Bonus of 30,000 Membership Rewards points when you spend at least $5,000 on eligible purchases within the first three months, and earn 1,000 Membership Rewards points each month (a total of 12,000 annually) when you spend a minimum of $3,000 on eligible purchases
BMO Rewards Business Mastercard
14.99%
22.99%
$0 annual fee for the first year ($120 thereafter)
N/A
Get 35,000 BMO Rewards points when you spend $5,000 in the first three months. Plus, the primary cardholder will get the first year $120 annual fee waived.
BMO Air Miles Business Mastercard
19.99%
22.99%
$0 annual fee for the first year ($120 thereafter)
N/A
Get up to 3,000 Air Miles Bonus Miles and pay no annual fee for the first year.
BMO Cashback Business Mastercard
19.99%
22.99%
$0
N/A
Get 6% cash back on gas, office supplies, cell phone bills and internet bills for 4 months.
BMO Air Miles No-Fee Business Mastercard
19.99%
22.99%
$0
N/A
Get up to 1,000 Bonus Air Miles.
American Express AIR MILES for Business Card
N/A
N/A
$180
N/A
Earn a Welcome Bonus of 2,000 AIR MILES when you spend at least $5,000 on eligible purchases within the first three months
Business Platinum Card from American Express
N/A
N/A
$499
N/A
Earn a Welcome Bonus of 35,000 Membership Rewards points when you charge $7,000 in purchases to your card in your first three months of Cardmembership.
Marriott Bonvoy Business American Express Card
19.99%
21.99%
$150
N/A
Receive 50,000 Marriott Bonvoy™ points when you charge $1,500 in the first 3 months of card membership. Terms apply
American Express Business Gold Rewards Card
N/A
N/A
$250
N/A
Earn a Welcome Bonus of 30,000 Membership Rewards points when you spend at least $5,000 on eligible purchases within the first three months
American Express AIR MILES Gold Business Card
19.99%
21.99%
$0
N/A
Earn a Welcome Bonus of 150 AIR MILES when you spend at least $1,000 in eligible purchases within the first three months
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Bottom line

You should consider a business credit card if you’re looking to streamline your business finances, separate private spending from business spending, and earn rewards geared towards your business. Using a business card is also a great way to build credit for your business which is important if you’re looking to secure credit like a business loan in the future.

If your company revenue is in the millions and the number of your employees continue to grow, a business credit card may not be enough. In this case, you might want to compare corporate credit cards to find a more suitable option.

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