A business credit card is often the first form of credit a new business obtains. Beyond providing revolving credit for everyday expenses, business credit cards help establish and build your business credit profile, which affects your ability to access larger financing programs.
How Business Credit Cards Work
- Credit limits typically range from $1,000 to $50,000 for small businesses
- Most business credit cards require a personal guarantee from the owner
- Interest rates vary but typically range from 15 to 25 percent APR
- Many cards report to business credit bureaus, building your business credit file
- Rewards programs can offset some business expenses
Requirements for Approval
- Personal credit score of 670 or higher for most business cards
- A registered business entity or sole proprietorship
- Business tax ID (EIN) or Social Security number for sole proprietors
- Basic business information including revenue and years in business
Building Business Credit
- Register your business: Get an EIN and register with the Texas Secretary of State
- Open a business bank account: Separate personal and business finances
- Get a business credit card: Use it for business expenses and pay on time
- Establish trade credit: Open accounts with suppliers that report to business credit bureaus
- Monitor your credit: Check your Dun & Bradstreet, Experian Business, and Equifax Business profiles
Why Business Credit Matters for Grants
While most grant programs do not check credit scores, your business credit profile matters for government-backed lending programs like SBA loans and CDFI financing. Building strong business credit early opens more funding options later.
Government Programs Beyond Credit Cards
Credit cards are a basic building block, but Texas businesses have access to significantly more funding through government programs:
- Grants that do not require repayment
- Tax credits that reduce your tax liability
- SBA loans with below-market interest rates
- Workforce training grants that offset hiring costs
Find Programs Beyond Credit Cards
Our free screening report checks your business against 150+ verified programs that provide more capital at lower cost than credit cards. Start your free screening →