This bonus is worth at least $1,800, based on Personal Finance Insider’s valuations, if you transfer your points to one of Chase’s airline or hotel partners. This guide can help you choose the best Chase business credit card for your business. We’ll give you the details of each of the best Chase business cards to help you make an informed decision. With multiple cards to choose from, there’s sure to be one that fits your spending habits and travel goals.
Business credit cards are meant be used for business purposes, not personal expenses. And while it’s not illegal to put personal expenses on a business card, it does make bookkeeping and tax preparation much more complicated. From an employee viewpoint, a corporate card eliminates the need to pay upfront for business-related expenses and then business credit card definition wait for reimbursement. A personal guarantee promises the card issuer that if your business can’t pay back your balance, you — the individual — will. As a result, late payments may impact not only your business credit, but your personal credit, too. There are a few business credit cards that don’t require a personal guarantee, though.
Best for Varied Expenses
You are not required to use a business credit card for business expenses, but there are benefits to doing so. Small-business credit cards typically have higher credit limits and a wider variety of spending categories for rewards and bonuses. Using a separate credit card for business expenses also keeps things streamlined and makes it easier to find deductions come tax time. Most major credit card issuers, such as American Express, Capital One, Chase, Citibank, and Wells Fargo, offer corporate credit cards. Approval for the cards is based on the applying company’s financial health—not the owners’ personal finances. Cards issuers may, for example, require the company to have strong financials, plus good liquidity and cash flow.
A higher score indicates that your business is more likely to pay its bills on time. There are a few things to consider before selecting a business credit card. It’s hard to do, but it can prevent reliance on credit cards if money runs out, she says. Once you’ve got a healthy dose of inspiration, refer to your credit card statements to tally up debt, interest rates and the monthly costs.
How To Get an Instant Approval Business Credit Card
An exception is the maximum liability limit of $50 for unauthorized transactions, which is the same for employees with corporate cards as for individuals. However, some card issuers go beyond the law to extend additional consumer protections. A key advantage of a corporate credit card is that it makes it easier to manage expenses—for employees and employers alike.
- 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.
- Don’t forget to consider your personal needs when evaluating foreign transaction fees, introductory APRs, and other benefits or downsides.
- You are required to pay the minimum or else your payment will be recorded as late.
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- However, businesses can also do a few other things to help establish credit.