Business Credit Card.
In plain English
A business credit card is a credit card opened in the name of your business and used for company expenses like supplies, travel, and software. It works like a personal credit card but keeps business spending separate and often comes with higher limits and rewards aimed at businesses. Many issuers still check your personal credit and ask you to personally guarantee the debt, meaning you are on the hook if the business cannot pay. Used carefully, it can help build a credit history for the business itself.
01Why it matters
Keeping business charges on a dedicated card makes bookkeeping and tax deductions cleaner, but a personal guarantee means business debt can still come back on you personally.
02The math, step by step
Your catering business spends $2,000 a month on ingredients. You put those charges on a business credit card that earns 2% back, so you collect about $480 in rewards over a year, and every food cost is recorded in one statement for your accountant.
03What this is NOT
Most small-business credit cards require a personal guarantee, so you are personally responsible for the balance. True corporate cards that put liability only on the company are usually reserved for large businesses with strong financials.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice