Business credit cards
Revolving credit for everyday business costs, up to a limit. Free if you clear the balance each month, but expensive if you carry it, and most consumer credit card protections do not apply.
- Personal guarantee likely
How it works
A business credit card lets you borrow what you need up to a credit limit and repay over one or more months, with a minimum monthly payment that is a small share of the balance. The FDIC gives "14% to 25%" as an example range for interest if you carry a balance from month to month. Cards are usually unsecured, and the application may look at your personal credit history as well as the business's.
Which rules apply: federal Truth in Lending rules (Regulation Z), including the protections added by the Credit CARD Act, generally do not cover credit for business purposes. Two Regulation Z rules do apply to business cards:
- a card can only be issued if you asked for it, or as a renewal or replacement, and
- your liability for unauthorized use of a lost or stolen card is limited to $50 at most, or less if you report it first. A business with 10 or more cards issued to its employees can agree to different terms with the issuer, but an individual employee's liability stays capped.
Watch for schemes: the Federal Trade Commission sued a business finance company whose ads promised business loans and lines of credit, but which instead applied for credit cards in owners' names, often personal ones, and charged 10% of the credit obtained. You can apply for cards yourself, for free.
Check the agreement for: the interest rate and how it can change, annual and late fees, cash advance costs, and whether you are personally liable for the balance.
Upsides and downsides
Upsides
- Quick to get and simple to use for small, regular costs
- No interest if you clear the balance each month
- Your liability for unauthorized use is capped by federal rules
Downsides
- Expensive if you carry a balance
- Most consumer card protections do not cover business cards
- Limits are often too low for larger costs
Risks
- Carrying balances on several cards can build debt quickly
- If you are personally liable, the balance can follow you if the business fails
- Paying late adds fees on top of the interest
What it costs
- How it is priced
- No interest if you pay the full balance by the due date; otherwise interest on the balance carried
- Typical range
- The FDIC gives "14% to 25%" as an example range for balances carried month to month
- Costs that are easy to miss
- Annual fees and late payment fees
- Cash advance fees, where the card allows cash withdrawals
- The rate can change, and Credit CARD Act limits on changes do not cover business cards
A credit limit set by the issuer from your business and personal credit.
Does it fit?
Could fit when
- You need a small amount for short-term, everyday costs
Unlikely to fit when
- You need a large sum or long-term finance
- You need money for equipment or property
- You could not clear the balance within a few months
Who can use it
- Business types: Sole proprietorship, Partnership, LLC, S corporation, C corporation, Benefit corporation, Cooperative, Nonprofit
- Issuers sometimes look at the owner's personal credit history as well as the business's
Am I ready?
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- Credit history checked
- Repayment plan
- Card terms compared
Regulation and protections
Regulators: Consumer Financial Protection Bureau (CFPB); Office of the Comptroller of the Currency (OCC); Federal Deposit Insurance Corporation (FDIC); Federal Trade Commission (FTC).
Who runs it: Private providers, nationwide.
Regulation Z's rules against unsolicited cards and its $50 cap on liability for unauthorized use apply to business cards. Most other Truth in Lending and Credit CARD Act protections do not. The Equal Credit Opportunity Act (Regulation B) covers business credit, so an issuer that turns you down must tell you why or how to ask.
Types of provider: Banks and credit unions; Card issuers and some financial technology companies.
Also consider
What has changed
No changes since this page was published. It was last checked against its sources on October 17, 2026.
Sources
- FDIC: Money Smart for Small Business, Module 5: Small Business Financing (participant guide) · checked October 17, 2026
- 12 CFR 1026.12 (Regulation Z): special credit card provisions, including business use · checked October 17, 2026
- 12 CFR 1026.3 (Regulation Z): exempt transactions, including business credit · checked October 17, 2026
- FTC: action against Seek Capital's business finance scheme (November 2024) · checked October 17, 2026
Something wrong or out of date?
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