Are business credit cards worth it?

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

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Close up of person in business wear handing credit card to someone else

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.

  • Purchase interest rate: 19.99%
  • Cash advance rate: 22.99%
  • 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 Welcome Offer Purchase Interest Rate Annual Fee Minimum Income Credit Rating
Offers 30,000 Welcome Bonus points when you spend $5,000 in purchases within the first 3 months of membership.
19.99%
$99
N/A
Good, Excellent
Earn up to 42,000 Membership Rewards® points in the first year of card approval. Offers 30,000 Welcome Bonus points when you spend $5,000 in purchases within the first 3 months of membership.
Offers 2,000 bonus AIR MILES® when you spend $5,000 within the first 3 months of membership.
N/A
$180
N/A
Good, Fair, Excellent
Offers 2,000 bonus AIR MILES® when you spend $5,000 within the first 3 months of membership.
Receive 40,000 points when you spend $5,000 within first three months of membership.
N/A
$499
N/A
Good, Excellent
Receive 40,000 points when you spend $5,000 within first three months of membership.
Offers 150 AIR MILES® when you spend $1,000 within the first 3 months of membership.
19.99%
$0
N/A
Fair, Good, Excellent
Offers 150 AIR MILES® when you spend $1,000 within the first 3 months of membership.
Receive 50,000 Marriott Bonvoy™ points when you charge $1,500 in the first 3 months of card membership.
19.99%
$150
N/A
Fair, Good, Excellent
Receive 50,000 Marriott Bonvoy™ points when you charge $1,500 in the first 3 months of card membership.
Offers 30,000 bonus points when you spend $5,000 within the first three months of card membership.
N/A
$250
N/A
Good, Excellent
Offers 30,000 bonus points when you spend $5,000 within the first three months of card membership. Benefit from purchasing power that adjusts dynamically with your card usage and grows with your business over time when you maintain a good credit.

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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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