At a basic level, business and personal credit cards are very similar: both are forms of short-term loans that must be paid off monthly. If you miss a payment, the credit card issuer may charge interest on the unpaid amount. As with personal cards, you can avoid interest charges entirely by paying your full balance each month.
However, business cards are tailored for work-related purchases and often come with rewards programs designed to benefit small business owners. These programs tend to offer points, cash back or miles on the kinds of purchases businesses typically make.
Organizing business spending
There are a few reasons why it makes sense to have a dedicated card for business-related expenses. First, and most practically, it’s easier to avoid mixing personal and business spending — a key consideration at tax time and when calculating profits and expenses.
Business credit cards can also make team spending easier. You can order cards for your employees and set individual spending limits, allowing them to cover work-related purchases such as business lunches or supplies without submitting reimbursements.
Rewards programs are another draw. Many business cards offer more points in categories such as office supplies, advertising and shipping, all of which are common expenses for small business owners and freelancers. These perks can add up and provide a helpful financial return.
Some cards even include built-in software — or seamless integrations with platforms such as QuickBooks or Expensify — to help you categorize expenses and track spending automatically, which can streamline your bookkeeping.
In short, business credit cards are designed with the needs of business owners in mind, making daily operations more manageable.
Who qualifies for a business credit card?
You don’t need to run a large company to be eligible. Freelancers, side hustlers and gig workers with earned income, even if they don’t have employees or a formal business structure, may be among those who qualify for business credit cards.
That said, providers may ask for some basic business details during the application process. You will be asked for your business name (which, if you are a sole proprietor, may be your legal name), your business tax ID or personal Social Security number, and your gross annual revenue from the prior year. You might also be asked about your business structure — whether it’s a sole proprietorship, limited liability company or corporation.
You should also expect to provide information about your personal finances. That’s because you, as the business owner, are personally responsible for making payments. If your business can’t pay the credit card bill on time, late payments can be reported to consumer credit bureaus and will harm your personal credit score.
The bottom line
You don’t need a business credit card to run a business, but it can be a helpful tool. If you’re looking for a simple way to separate personal and business finances, or if you frequently spend in categories such as shipping, supplies and advertising, a business credit card could offer both convenience and rewards.
Consult a trusted adviser to determine the best credit card option for you and your business.
© 2025