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What is the Best Small Business Credit Card for Establishing Creditworthiness?

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What is the Best Small Business Credit Card for Establishing Creditworthiness?

By Marco Carbajo, Guest Blogger
Published: March 14, 2013

With fast access to cash, convenience and all the perks that come along with it, a business credit card is a standard tool used by business owners.

But did you know that less than 50% of the credit cards obtained by business owners nationwide are actually in the company’s name?

It’s a shocking reality, to say the least, but the good news is there are plenty of business credit cards that cater to savvy business owners like you who understand the importance of establishing business credit.

The majority of cards one can obtain for a business also have a great deal of benefits such as cash back rewards, rewards points, travel rewards and detailed reports.

Those aiming to strengthen the credit of a business must understand that it’s vital to obtain cards that report payment activity to a business credit agency.

When applying for credit, one of the ways to identify a non-reporting issuer is by what’s required on the application. If all that is required is to supply personal information, a social security number and business name, then this card issuer in most cases will solely report to a consumer credit agency.

Take it a step further and simply read the disclosure section on the application. It will read something like, ‘I Authorize the receipt and exchange of credit information on the business signer, including the exchange of information between XYZ credit card issuer and its affiliates.’

Nowhere here does it disclose that the ‘Business’ will be included in the receipt and exchange of credit information it just states the business signer. (That’s you!)

If this is the case, then be aware that you will be personally liable for all debt your company incurs on this card and all payments and any revolving debt will be reported to a consumer credit agency. This type of business credit card is nothing more than a glorified personal credit card with your company name on it.

Now don’t get discouraged, because there are cards that may require a personal credit check. But the good news is payment activity is reported to both consumer and business credit reporting agencies.

While credit cards that fall right into this category may not be my first recommendation, at least it helps establish company creditworthiness because it reports to several business credit agencies.

The downfall is that your company’s revolving credit card debt is still reporting on your consumer credit reports, resulting in a negative impact on your personal credit scores.

Ideally, the best small business credit card is one that reports only to business credit reports. Thankfully, there are issuers offering these types of cards despite the challenges in the economy.

But before you get too excited, know that most issuers will require a personal and business credit check. The most important thing to remember with these cards only your business credit reports will reflect your revolving debt, therefore protecting your personal credit scores.

About the Author:

Marco Carbajo
Marco Carbajo

Guest Blogger

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the Community, and All His articles and blog; Business Credit, have been featured in 'Fox Small Business','American Express Small Business', 'Business Week', 'The Washington Post', 'The New York Times', 'The San Francisco Tribune',‘Alltop’, and ‘Entrepreneur Connect’.


Good article. It brought up points that I didn't know about small business credit cards.
I can't stress enough the importance of ensuring business credit cards don't appear on your personal credit. There are professional agencies who can help ensure it will not appear on your personal credit. They also increase amount of funding you'll receive because they work directly with banks. If the credit lines appear on your personal report this could effect your ability to refinance a mortgage, student loans, acquire new credit lines, and much more. Separating personal and business expenses is absolutely critical to growing a successful and healthy business. Also make sure you have a good product or service to offer!
Interesting article...I wasn't aware of the 'Business Credit Agencies' only the 'Consumer Agencies.' Learning the ins and outs of business is a bottom-less pit. Great tip! Thanks
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I simply signed my company up for a SAM's Discover card because that is where the majority of our purchases take place. To me, it sounded like a good idea to earn rewards with SAM's. Both my name and business name are on the card as well. For the last two years, my annual reward checks and credit score have been great. Looks like I am in the "less than 50% statistic" which is good.

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