Credit cards issued under the name of a legally organized and recognized business are known as “business credit cards,” and their primary function is to facilitate business transactions.
The number of times they’ve been used has grown during the past few decades. As an example, in a study made in 1998, 37% of small businesses said they used a business credit card; by 2009, that number had grown to 64%.
There are a number of benefits unique to business credit cards. Shipping, office goods, vacation packages, and business software are just a few of the sectors where they routinely offer discounts and perks.
When considering an application, most issuers look at the applicant’s credit history. Furthermore, some card issuers do not report business credit account activity to the sole proprietor’s personal credit; or do so only if the account is late. As a result, the company’s credit doesn’t affect the owner’s personal credit.
Business credit cards are available from several major banks and certain credit unions.