Business credit cards are a good fit for most businesses. Your credit limit on a business credit card may be low to start out, especially for new businesses or those without much revenue, but issuers will typically raise your limit after a few on-time payments. While you can carry a balance from month-to-month on a business card, you’ll pay costly interest charges on any unpaid balances.
Business charge cards have no preset spending limit and may offer better rewards, but they leave you little wiggle room as most purchases need to be paid in full each statement cycle. Consider a charge card if your business has a big budget and steady cash flow.
Corporate cards usually have higher credit limits than traditional business cards, and they don’t require a personal guarantee or credit check. Instead, approval is based on revenue, bank account balance and other business financial data. Corporate cards are not available to sole proprietors and other non-registered businesses.
