Small business credit cards offer myriad benefits: rich rewards and flexible credit lines with credit limits that are often higher than on personal cards. Plus, there’s an added bonus that small business owners don’t always recognize at first: A business credit card may help you build business credit. Show
Getting one of these cards may help put your business on the map when it comes to building business credit, provided the card issuer reports information to commercial credit agencies. Not all cards have the same policy when it comes to reporting to business credit bureaus, though, and it’s important to understand how each one works. (In a separate article, we explain how business credit cards may affect a business owner’s personal credit.) Find the Right Credit Card Match Get personalized business credit card matches and access to your business credit report when you sign up for a free Nav account. Checking won't hurt your credit scores. Get Started How Business Credit Cards Report to Business CreditThere are a number of commercial credit reporting agencies in the U.S. Separately, the Small Business Financial Exchange (SBFE) serves as a repository of business credit information for its members, which include major financial institutions and lenders of all types that provide financing to small businesses. The SBFE doesn’t compile or sell credit reports. Instead, it works with SBFE Certified Vendors, which are credit reporting agencies that are permitted to include credit information reported to the SBFE exchange in the reports they sell to members of the SBFE. SBFE Certified Vendors currently include major business credit bureaus like Equifax and Experian. Credit reporting is entirely voluntary. No issuer is required to report information to credit bureaus, whether it’s personal or commercial credit information. And with business credit in particular, it can be difficult to find lenders and vendors that report. That’s why having a credit card that reports can be so helpful. We reached out to major business credit card issuers for details on where they report small business credit card payment history. The chart below summarizes findings. Information may also appear on credit reports from bureaus not listed below. One reason is due to the SBFE Certified Vendor model. Information reported to SBFE may also be included in reports compiled by SBFE Certified Vendors. Issuer policies may change. Be sure to check with the issuer for current information on credit reporting policies. How to Get a Business Credit Card to Build CreditSmall business credit cards are available to small business owners with good personal credit scores and sufficient income to meet the issuer’s minimum income requirements. A few important qualifiers to keep in mind:
What to Look For in a Credit Card to Build CreditBusiness owners looking for a credit card have many choices. Your primary goal may be to build credit, but that doesn’t mean you should overlook other benefits of small business credit cards: Rewards: Think of all the money you spend in your business, then think about all the credit card perks you may earn if you use a credit card to pay for those business expenses. For many businesses, it adds up quickly. Cash back rewards are universally popular, as business owners can always use cash! Some cards offer bonus cash back for spending in bonus categories (such as office supply stores) so it’s helpful to review your typical business purchases before you choose a card. Points are also popular, and are most often used for travel, but can be redeemed for other rewards such as gift cards. Financing: Don’t overlook the fact that a business credit card is essentially a line of credit your business can use when needed. Unlike a business loan, no one will question why you need financing. Some cards even offer balance transfers or introductory APRs of 0% for a year or longer. That low-cost financing can be very helpful to new businesses or any business that is experiencing tight cash flow. It’s essential, though, that you use this financing for essential business spending. Otherwise you may find your business with a credit card balance at a high interest rate once the introductory rate expires. 4 Best Business Credit Cards to Build CreditIf your goal is to build business credit, while enjoying the benefits small business credit cards offer, here are five card offers to consider: 1. Chase Ink Business Preferred® Credit CardChase reports to all the major commercial credit reporting agencies, making it a good choice if you want to build business credit. The Chase Ink Business Preferred® Credit Card is a particularly attractive card. It offers a generous sign-up bonus: Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening.. That’s $1,000 cash back or $1,250 toward travel rewards when you redeem through Chase Ultimate Rewards®, their travel portal. Ongoing reward points are solid as well: Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchasesâ€"with no limit to the amount you can earn.
Earn an unlimited 1 Point Per $1 spent on all other purchases. Points do not expire as long as the account is open. You can also get free employee cards. The annual fee is $95 and there are $0 foreign transaction fees. 2. Divvy Smart Credit Card for BusinessDivvy reports to the SBFE and a major business credit bureau. Divvy Smart Credit Card for Business streamlines spend management by combining corporate cards with free expense management software. It gives admins complete control over employee spending with spending limits that can be adjusted in seconds. Divvy can help your business eliminate expense reports, spend within your budget and build business credit. All charges made on this charge card are due and payable when you receive your periodic statement The annual fee is $0. And the rewards program is competitive: Up to 7% points, based on payment settings. 3. American Express Blue Business Cash™ CardIf you’re looking for a straightforward cash back rewards card, the American Express Blue Business Cash™ Card is a solid choice. American Express reports business credit cards to the SBFE, which means that information may appear on multiple business credit reports, depending on the report purchased by a lender. You can get 0% on purchases for 12 months from date of account opening which make this card appealing for businesses looking for low-cost financing. There’s also a welcome offer: Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months. Rewards come in the form of cash back. Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Amex cards require excellent credit to qualify. 4. Capital One Spark Cash Select - 0% Intro APR for 12 MonthsCapital One reports to the SBFE and Experian Small Business. (It should be noted that it may report activity to the cardholder’s personal credit. Learn more here.) If you decide a Capital One Spark Card is right for you, this is a great pick for businesses that want to carry a balance with an introductory APR. There’s $0 annual fee and it offers an intro APR of 0% on purchases for 12 months with 18.99% - 26.99% (Variable) APR after that. You can also earn unlimited 1.5% Cash Back on every purchase and 5% Cash Back on hotels and rental cars booked through Capital One Travel. Good credit is required. Secured vs. Unsecured Credit CardsIf you can’t qualify for a small business credit card due to bad credit, you may want to consider a secured credit card. These cards require a security deposit as collateral. Pay on time and can build credit, eventually qualifying for an unsecured card. However, there are not a lot of issuers offering secured business credit cards. Bank of America is one of the few major issuers that does so. Learn more about business secured cards here. Tips for Building Business Credit With Credit CardsIf one of your goals is a good business credit rating, consider getting a business credit card. Many entrepreneurs think their business has to be well-established and profitable to qualify, but that is not always the case. Card issuers are often more interested in the personal credit score of the owner who applies, and will often consider income from a variety of sources, not just the business itself. To build strong business credit using a business credit card, make sure you:
Credit cards can be a flexible and relatively low-cost way to borrow for your business and can offer lucrative rewards that provide additional value at no cost when you pay your balances in full. As with all types of credit, you want to be careful and cautious so you don’t put your business finances at risk. FAQsCan a Personal Credit Card Build Business Credit?The answer is “no”, a personal credit card will not build business credit because it will not appear on business credit reports. To build business credit, you’ll want to choose a small business card that reports to business credit. Can you get a business credit card with a 600 credit score?Most business credit cards require good or excellent credit to qualify. If your credit scores are below 650, you may need to consider a secured credit card or other options to build business credit, such as net-30 vendor accounts. How can I build my business credit fast?The fastest way to build business credit is to establish accounts with companies that will report your payment history, including business credit cards, business loans and vendor accounts. (Not all of these companies will report, so be sure to check before you apply.) This article was originally written on February 6, 2018 and updated on October 28, 2022. Rate This ArticleThis article currently has 303 ratings with an average of 4.5 stars. What credit companies report to Dun and Bradstreet?And that's true whether it's personal or commercial credit data. So with business credit especially, it can be tough to find lenders and vendors that report. That's why this kind of information is important. Right now, American Express, Capital One, Chase, and Citi all report to Dun & Bradstreet.
Do all business credit cards report to Dun and Bradstreet?Not all business credit cards report to Dun & Bradstreet or to the other business reporting agencies, and some only report negative information to credit agencies. If you're not sure how or whether an issuer reports to the business credit agencies, ask them.
Does Amex report to D&B?American Express only reports only negative activity to Dun & Bradstreet (D&B). They do report to the Small Business Financial Exchange (SBFE).
Does Chase report to DNB?They found that Chase and Citi are the only big banks in the United States that report business financing payment activity to all four of the top bureaus (D&B, Equifax, Experian, and SBFE).
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