Business credit card 101

April 21, 2021

If you’re looking into a business credit card for the first time, get a head start by learning the basics, so you can hit the ground running when it’s time to shop around.

There’s no better feeling than when your small business starts to take off. Whether you just registered your business with the state or you’ve gone from pop-up to brick-and-mortar, hitting such milestones takes your dream to a new level. But as any entrepreneur knows, as business grows, so do financial demands, which is why many small companies rely on business credit cards to help keep things running smoothly.

Small businesses can take lots of different shapes, so it makes sense that business credit cards are designed to suit a variety of needs. If your business is a passion project you handle alone, you likely won’t need the same type of card as one with 50 employees. Here we share some best practices and considerations as you weigh what a business credit card could mean for you, so you feel prepared to shop, apply and give your small business a boost when the time is right.

 

What makes business credit cards different

A business credit card isn’t the same as a personal credit card. It has different functions and features designed for business purchasing rather than consumer purchasing. Business credit cards generally have higher limits and specific rewards that you might not find on a personal credit card. Phone bills, office supplies and gas station purchases are common categories for which business credit cards offer spending rewards. Many banks will also send an itemized report of your spending at the end of the year to make tax filing simpler.

The U.S. Bank Triple Cash Rewards Visa® Business Card includes Spend Analysis, an exclusive online reporting tool that gives you a clear picture of your total business spending It breaks down all your spending by category, so you know how much money is going where. Business credit cards also help keep your personal and professional finances separate — when your business has its own card, it also has its own credit identity that won’t affect your personal score. Good rule of thumb: you’ll know business credit cards are a good option when your business spending starts growing and getting more complex.

 

What business credit cards can help you do better

Business credit cards are a long-term play to help make running your business easier and more streamlined. Maybe you have growing inventory costs, machinery in need of repair or replacement or an international business trip coming up. The higher limit on business credit card can be a lifeline in these situations.

And while they may seem like a nice-to-have, card rewards shouldn’t be overlooked when considering opening an account. Cash back rewards can add up quickly when you’re using your card for regular business purchases. On top of 2% cash back in two of your most-used categories, the U.S. Bank Business Leverage™ Visa Signature® card has no annual point limits, so there’s no cap on the amount of rewards you can earn. Having a credit card for your small business can make tax season easier, too. The itemized report of your yearly spending means you don’t have to spend weeks going through old receipts when it’s time to file.

Just like being strategic about key purchases for your business, a good rewards program can go a long way — especially if you use your credit card to make payments, and route payments from customers to the same account. 

 

8 things to know about business credit cards

  1. Business credit cards give you access to unique rewards personal credit cards don't offer
  2. You can build credit for your business so you'll be better-positioned to apply for loans.
  3. They come in handy for recurring inventory costs.
  4. Having little to no business history won't ruin your chances of getting approved for a card.
  5. Different kinds of cards work better for different kinds of businesses. We have multiple options to meet your unique needs.
  6. You can use credit card rewards to offset other business expenses.
  7. Business banking specialists and U.S. Bank branch managers are there to help you at any time.
  8. You can use business credit cards in place of checks, ACH and debit cards to help protect your business from checking account fraud.
     

These basics of business credit cards are just a start as you weigh what one could mean for your company.

 

Learn more about how you can make the most of a business credit card with these eight points in mind.

Learn about U.S. Bank

Related content

4 ways Request for Payments (RfP) changes consumer bill pay

Evaluating interest rate risk creating risk management strategy

Employee benefit plan management: trustee vs. custodian

What applying for store credit card on impulse could mean

Webinar: CRE technology trends

Cashless business pros and cons: Should you make the switch?

Unexpected expenses: 5 small business costs to know and how to finance them

Credit: Do you understand it?

How to use credit cards wisely for a vacation budget

Real world advice: How parents are teaching their kids about money

Helpful tips for safe and smart charitable giving

Travel for less: Smart (not cheap) ways to spend less on your next trip

How to reward employees and teams who perform well

Myth vs. truth: What affects your credit score?

Allowance basics for parents and kids

5 reasons why couples may have separate bank accounts

7 steps to keep your personal and business finances separate

30-day adulting challenge: Financial wellness tasks to complete in a month

High-yield bond issuance: 5 traits lawyers should look for in a service provider

Year-end financial checklist

3 ways to secure purchasing power

Putting home ownership within reach for a diverse workforce

Administrator accountability: 5 questions to evaluate outsourcing risks

For small business growth, consider the international market

Refinancing your practice loans: What to know

ABL mythbusters: The truth about asset-based lending

What type of loan is right for your business?

Easier onboarding: What to look for in an administrator

Insource or outsource? 10 considerations

10 ways a global custodian can support your growth

4 questions you should ask about your custodian

Refining your search for an insurance custodian

Service provider due diligence and selection best practices

Authenticating cardholder data reduce e-commerce fraud

Complying with changes in fund regulations

Business risk management for owners of small companies

Evaluating interest rate risk creating risk management strategy

Webinar: Approaching international payment strategies in today’s unpredictable markets.

Managing the rising costs of payment acceptance with service fees

Webinar: CSM corporation re-thinks AP

Increase working capital with Commercial Card Optimization

Tech tools to keep your restaurant operations running smoothly

A simple guide to set up your online ordering restaurant

ePOS cash register training tips and tricks

Webinar: AP automation for commercial real estate

Addressing financial uncertainty in international business

Higher education and the cashless society: Latest trends

5 winning strategies for managing liquidity in volatile times

The surprising truth about corporate cards

The future of financial leadership: More strategy, fewer spreadsheets

Digital banking and cloud accounting software: How they work together

Choosing your M&A escrow partner

High-cost housing and down payment options in relocation

Why retail merchandise returns will be a differentiator in 2022

Save time with mobile apps for business finances

What corporate treasurers need to know about Virtual Account Management

Crypto + Relo: Mobility industry impacts

For today's relocating home buyers, time and money are everything

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Empowering team members

10 tips on how to run a successful family business

How I did it: Grew my business by branching out

Making a ‘workout’ work out as a business

How a bright idea became a successful business (in Charlotte, North Carolina)

Making the leap from employee to owner

Business tips and advice for Black entrepreneurs

Tools that can streamline staffing and employee management

How to identify what technology is needed for your small business

Planning for restaurant startup costs and when to expect them

How to fund your business without using 401(k) savings

How to test new business ideas

The role of ethics in the hiring process

8 ways to increase employee engagement

How to hire employees: Employee referral vs. external hiring

Give a prepaid rewards card for employee recognition

Checklist: Increase lead generation with website optimization

Is your restaurant Google-friendly?

How business owners are managing during the supply chain crisis

How small businesses are growing sales with online ordering

3 simple brand awareness tips for your business

How a small business owner is making the workplace work for women

The growing importance of a strong corporate culture

How small business owners can budget for the holiday season

Why credit cards should be the first choice for business payments

7 uncommon recruiting strategies that you may not have tried yet

How increased supply chain visibility can combat disruptors

6 common financial mistakes made by dentists (and how to avoid them)

Technology strategies to complement your business plan

Business credit card 101

Meet your business credit card support team

How to apply for a business credit card

What kind of credit card does my small business need?

Do I need a credit card for my small business?

How jumbo loans can help home buyers and your builder business

5 tips to help you land a small business loan

5 questions business owners need to consider before taking out a loan

Leverage credit wisely to plug business cash flow gaps

How to establish your business credit score

How to make the most of your business loan

Break free from cash flow management constraints

5 tips for managing your business cash flow

5 ways a business credit card program can grow your business

How Everyday Funding can improve cash flow

Building a business with a great product and a greater purpose

How running a business that aligns with core values is paying off

Meet the Milwaukee businessman behind Funky Fresh Spring Rolls

Improve online presence your business

Honey Luxury Beauté: growing a side project into an eye-catching beauty business

How Shampoo’ed is transforming hair and inspiring entrepreneurs

The San Francisco bridal shop that’s been making memories for 30 years

How Al’s Breakfast is bringing people together

In a digital world, Liberty Puzzles embraces true connection

Celebrity Cake Studio’s two decades of growth and success

How a travel clothing retailer is staying true to its brand values

How to build a content team

Use this one simple email marketing tip to increase your reach

How (and why) to get your business supplier diversity certification

How to build credit as a student

Tips to overcome three common savings hurdles

How to choose the right rewards credit card for you

Dear Money Mentor: How do I set and track financial goals?

5 tips to use your credit card wisely and steer clear of debt

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

How to increase your savings

5 tips to use your credit card wisely and steer clear of debt

5 steps to selecting your first credit card

Dear Money Mentor: How do I begin paying off credit card debt?

Money Moments: How to finance a home addition

How to spot a credit repair scam

6 essential credit report terms to know

5 unique ways to take your credit card benefits further

Test your loan savvy

Should you give your child a college credit card?

How to improve your credit score

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.