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Business credit cards allow for more access to cash, better rewards, and lower monthly payments than a personal card. If you are considering opening your own business in 2021, these top-rated options will help keep your finances manageable.
Your personal credit score will be unaffected by business credit cards provided by institutions that do not report card activity to your personal credit. You may use these cards in the same way you would any other credit card to collect introductory benefits, get low-cost financing, and keep your personal and business costs separate. While all of the cards featured in this post demand a personal credit check and personal guarantee, continuous business activity will not harm your personal credit score.
The following are the best business credit cards that don’t affect your personal credit:
Wells Fargo Business Platinum Credit Card
BEST FOR
With no annual charge, you may choose between cashback or points incentives.
Variable 12.74 percent – 22.74 percent
- When you enlist in the Business Card Rewards Program and spend $3,000 within the first three months of account opening, you’ll get a one-time $500 cashback incentive or 50,000 bonus points; there’s no annual rewards charge.
- Get 1.5 percent cash back on every dollar you spend.
- Earn 1 point for every $1 spent, plus 1,000 additional points for each monthly billing period in which your firm spends $1,000 or more.
- There is no annual card cost, and you may have up to 99 employee cards (no additional fee)
- Instruments for managing money
- Online spending reports are accessible.
- Options for online banking and bill payment
Pros
- A fantastic welcome bonus package is available.
- Period of no interest funding
- Bonuses are given out on a regular basis if you fulfill your monthly spending goals.
Cons
- Low long-term incentives
- Fees for reclaiming airline tickets
- Points have a time limit.
- Purchase protection: Wells Fargo provides coverage for products bought that are damaged or stolen within 90 days of the date of purchase. The things may be repaired, replaced, or reimbursed. The amount of coverage is capped at $10,000 per item and $50,000 per year.
- Wells Fargo’s design studio lets you personalize your card by uploading a picture that reflects your business. The picture maybe your company’s emblem or a shop, for example.
Why we like it:
The Wells Fargo Company Platinum Credit Card allows you to develop business credit without affecting your personal credit score. You’ll have the option of earning points or receiving cashback. This is a terrific business credit card for any company owner, especially with the amazing introductory bonus offer.
This card offers flat-rate rewards on all transactions, making it an excellent choice for small company owners with varying monthly spending. It’s also a budget-friendly card, with no annual fee and a 0% APR term that lasts long enough to save money on interest. With all you receive out of this card, it’s evident that it’s the best option for company owners who don’t want their personal credit to be impacted by their firm.
CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®
BEST FOR
Frequent travelers on American Airlines who desire premium airline benefits
- On telecoms, car rentals, and petrol station purchases, you’ll earn 2 AAdvantage® miles.
- On qualified American Airlines purchases, you’ll earn 2 AAdvantage® miles.
- On all other purchases, you’ll earn 1 AAdvantage® mile.
- The first checked bag is complimentary.
- Terms and Conditions apply.
Pros
- A fantastic welcome bonus package is available.
- The first checked bag is free.
- On American Airlines flights, priority boarding is available.
Cons
- There is no access to the airport lounge.
- Select bookings that have blackout dates.
- It’s possible that you’ll have to pay a charge to redeem your rewards.
- Free checked bag: You and up to four friends flying with you on domestic routes may check one bag for free if they are mentioned on the same reservation.
- Preferred boarding: You and up to four traveling companions will be permitted to board after priority boarding but before the rest of the economy.
- Companion certificate from American Airlines: Make at least $30,000 in qualifying purchases per 12-month period before your card anniversary date to earn one $99 domestic economy ticket (plus $21.60 to $43.40 in government taxes and levies).
- Savings on in-flight purchases: Use your CitiBusiness credit card to get a 25% discount on in-flight food, beverage, and Wi-Fi purchases.
Why we like it:
If you enjoy traveling, it’s a good idea to acquire a card that gives you travel privileges and optimizes points while also helping you develop business credit. The CitiBusiness® / AAdvantage® Platinum Select® World Mastercard® is one of the finest cards for traveling business owners aiming to reduce the effect on personal credit. Frequent travelers on American Airlines will get free checked bags and priority boarding, making business travel considerably more convenient.
This card is ideal for accumulating miles that can be used for free flights. It also gives you a 25% discount on in-flight purchases and the opportunity to win a free companion ticket if you spend enough. However, these card perks come at a cost of an annual fee, which is justified when you consider the travel benefits this card provides.
SignatureCard® from Wells Fargo Business Elite
BEST FOR
Businesses having yearly revenues of more than $1 million
The first year of the $75 yearly rewards program cost is free.
- When you enlist in the Business Elite Card Rewards Program and spend $15,000 within the first three months of account opening, you’ll get a one-time $1,000 cashback incentive or 100,000 bonus points. For the first year, the $75 annual rewards program cost is waived.
- Get 1.5 percent cash back on every dollar you spend.
- There are no international transaction fees.
- Employee cards (up to 200)
- Options for paying your bills
- Reporting tool for businesses online
- There is no extra card cost.
Pros
- A substantial welcome bonus is available.
- Low annual percentage rate (APR)
- Employee cards are available for free in quantities of up to 200.
Cons
- Low long-term incentives
- There are no additional category awards available.
- Online applications are not accepted.
Features
- Setting transaction limitations, time constraints, and spending category restrictions on any employee card are all possible options.
- Company Elite Online Reporting: Easily review and monitor business data and spending patterns with Business Elite Online Reporting.
- Auto Rental Collision Damage Waiver: When you waive the rental car merchant’s insurance, you get coverage for stolen or damaged rental cars up to the cash value of the vehicle.
- Purchase Security: Have products that were damaged or stolen within 90 days of purchase fixed or replaced, or receive compensation for the item’s worth, up to $10.00 per claim and $50,000 per year.
- Extended Warranty Protection: For warranties of three years or less, Visa will double the duration of warranty protection granted by the manufacturer, up to one year.
- Cardholders, their spouses, and dependents have free access to emergency, medical, travel, and legal support 24 hours a day, seven days a week.
Why we like it:
The Wells Fargo Business Elite Card® is geared for companies with yearly sales of more than $1 million. It provides reasonable continuous benefits, with the option of earning points or cashback. Although the continuing benefits aren’t the finest, this card has a lower purchase APR than other business credit cards, which may appeal to some.
This card has the highest annual price on the list, which may dissuade some company owners. Big spenders, on the other hand, have a chance to get one of the biggest initial bonuses on a business card, which may cover the annual fee for the first year. Plus, you’ll receive a $100 yearly travel reimbursement, making it even more worthwhile to keep this card long-term.
Anywhere Costco Citi’s Visa® Business Card
- For the first $7,000 every year, get 4% cashback on qualified gas worldwide, including petrol at Costco, and then get 1% after that.
- 3 percent cash back on qualified restaurant and travel purchases made anywhere in the globe
- All other Costco and Costco.com purchases will earn you 2% cashback.
- All other purchases will earn you 1% cashback.
Pros
- Costco gas incentives are among the best in the industry.
- There is no yearly charge.
Cons
- Costco is the only place where you may use your rewards.
- There are no bonuses, to begin with.
Features
- Car rental insurance provides main coverage, which means you won’t have to rely on your own car insurance or accept the rental agency’s coverage. The amount of coverage is restricted to $50,000.
- Purchase protection: If an item bought with your business Costco card or your reward certificate is damaged or stolen within 120 days of purchase, or 90 days if you live in New York, the issuer may restore or refund you.
Why We like it
The Citi Costco Anywhere Visa® Business Card is another strong contender from Citi. Regular Costco customers, particularly those who spend a lot of money on petrol, would love this card. This card’s top earnings are earned not just on Costco gas purchases, but also on petrol purchased elsewhere. Furthermore, for a card with no annual fee, the travel benefits you’ll receive are excellent.
This card provides a lot of benefits, including high rewards on all Costco purchases as well as second-tier rewards on restaurant and qualified travel expenditures. To open this card, you’ll need a Costco membership, which begins at $60 a year.
On the negative side, the redemption of points isn’t as simple as it is with other credit cards. Redeemed awards will be sent to cardholders in the form of an annual certificate in February. You may cash in your voucher at a Costco warehouse or use it to make purchases at Costco. You shouldn’t rely on this card for rapid cash redemption since you only receive one certificate each year.
Secured Credit Card from Wells Fargo
On purchases, Prime members get an extra 11.90 percent off.
- Option 1: Earn 1.5 percent cash back on every dollar spent.
- Option for Reward Points: Earn 1 point for every $1 spent, plus 1,000 additional points if your firm spends $1,000 or more in a monthly billing period.
- There is no yearly cost for the rewards program.
- A credit line of $500 to $25,000 is available.
- There is no risk of responsibility.
Pros
- With a credit score of less than 580, approval is possible.
- Fixed-rate cash back or points rewards are your options.
Cons
- A security deposit of at least $500 is required.
- Has a yearly charge
Features
- Purchase Assurance: If an item is damaged or stolen within 90 days of purchase, Wells Fargo will fix, replace, or refund you.
- Design Studio: On your credit card, include a personal picture or a company design.
Why we like it:
This secured card doesn’t have a lot of features or incentives, but it’s perfect for company owners with bad credit who can’t get accepted for a standard credit card. It has a credit limit equivalent to a cash deposit in a collateral account, and a security deposit of at least $500 is required to qualify. You may, however, deposit as much as you like for the credit line you want, up to a maximum of $25,000.
This card, in classic Wells Fargo form, gives company owners the choice of earning points or cashback on every transaction. If you pick the points option, you may get a $100 initial bonus. Even though this card doesn’t have great rewards, it’s the best choice for those with credit scores around 570.
Personal Credit Reporting Agencies
Citi and Wells Fargo are the only two corporate credit card issuers that do not report to personal credit agencies. These issuers’ business credit card activity has no bearing on your personal credit, therefore you won’t be able to improve your personal credit score. Get a business credit card from an issuer that reports to personal credit if you want to improve your company and personal credit ratings.
Credit Reporting Policies of Major Business Credit Card Issuers
As long as an account is in good standing, Capital One will no longer report to personal credit agencies for company owners who opened a Capital One Spark Cash for Business card on or after October 20, 2020. All activity on all other Capital One Spark for Business cards is reported to personal credit.
When Do Credit Cards Send Information to the Credit Bureaus?
Credit card issuers normally report to the credit bureaus once every 30 days, or once each payment cycle. Because the actual date varies per card issuer, it’s a good idea to double-check your bank’s reporting policy to prevent any surprises. These issuers disclose two main elements that go into determining your credit scores: credit card balances and payment history.
When Does Using a Business Credit Card Affect Your Personal Credit?
During the application process, most business credit card issuers will do a hard inquiry on your personal credit, which may temporarily reduce your credit score. Ongoing business card activity, including balances, payment history, and credit usage ratio, has an influence on your personal credit only if the issuer reports it to a consumer credit agency.
American Express, Bank of America, Chase Bank, Capital One, and U.S. Bank are among the corporate credit card issuers that will only report to your personal credit if your account is late. Each corporate credit card issuer, on the other hand, has its own credit bureau reporting rules.
Benefits of Business Credit Cards That Don’t Report to Credit Bureaus
- Your personal credit will not be affected by ongoing activity: You don’t have to worry about your firm’s activities harming your personal credit when you use business credit cards that don’t report to personal credit. When you run a company, this is a terrific strategy to preserve your personal credit score.
- Personal credit is unaffected by credit use since business credit cards often have bigger amounts. These cards, on the other hand, do not submit this information to credit agencies, which might help you maintain a low personal credit use ratio. Maintaining a high personal credit score requires a low credit use ratio.
Negative aspects of business credit cards
- You won’t be able to increase your personal credit score if you use business credit cards that don’t report to personal credit. You’ll need to switch to a different credit card provider, such as Capital One or Discover if you wish to improve your personal credit.
- You’ll be required to provide a personal guarantee: Despite the fact that corporate credit cards do not report to personal credit, the majority of them nevertheless need a personal guarantee. Consider business credit cards without personal guarantees if you don’t want to be held personally liable for business cards.
How We Assessed Business Credit Cards That Don’t Report to Credit Bureaus
The most significant aspect we evaluated while deciding on the top selections for our list was corporate credit cards that don’t disclose continuing activity to your personal credit. Although these cards safeguard your personal credit ratings, it’s also crucial to think about which cards would benefit your company the best. As a result, we looked at cards that provide fantastic rewards, card advantages, and cheap fees while also assisting in the development of corporate credit.
Conclusion
Having a company credit card that does not report ongoing activity to your personal credit may help you grow business credit while keeping your personal credit safe. The finest cards will also earn you points and provide you with extra business benefits. You should seek a card that can perform all of the above to get the greatest value out of it.
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Frequently Asked Questions
How do I get a small business credit card without personal credit?
Start by getting a business checking account, if you don’t have one. After that, get an application for a credit card and fill out the form with your company information and personal finances.
Does Wells Fargo Business Credit Card Report to personal credit?
Yes, all Wells Fargo business credit cards report to personal credit.
