Higher Credit Limits
If you run a small business, you have business income that can be used to pay your debts each month. Additionally, you likely have higher expenses than someone who does not run their own business—though this is not always the case. Consequently, most banks and credit card companies are willing to extend more credit to small and medium-sized businesses.
For example, let’s say that you go to apply for a personal credit card at your banking institution. Based on your qualifications, the bank offers you a card with a limit of $2,000. If you apply for a business credit card that is linked to a business you own and operate, you could potentially get a limit that is two or three times as much.
Just keep in mind that business credit card limits are typically linked to the income that your business brings in. A small business with a net annual income of $500,000 will qualify for higher credit limits than a small business that brings in $100,000 per year.
Additionally, you may have to pay an annual fee to maintain these high limits. While we will cover several business cards with no annual fee in today’s guide, many providers include an annual fee that is typically around $100.