.webp)
The best high-limit business credit cards for small businesses in July 2024
4.8 rating
straight to your inbox
4.8 rating
.webp)
Business credit cards are a great way to separate your business and personal finances as a small business. These credit cards typically come with higher spending limits than personal cards, and the best options offer tools to help you build your business.
In this article, we cover everything you should know about high-limit credit cards and review some of the best high-limit business credit cards on the market today.
Do business credit cards have higher limits?
Business credit card limits are usually higher than personal credit card limits simply because a business spends more than an individual.
When determining the credit limit for a business credit card, card issuers assess a business's creditworthiness based on its revenue, credit history, and financial stability. If your business has a good credit history or is generating a lot of monthly revenue, you may qualify for a higher credit limit.
Some business cards come with preset spending limits you can customize for different vendors and categories. So, cardholders can spend more on eligible purchases within certain spending categories, like office supplies or car rentals, up to the predetermined limit. If your monthly business expenses increase, you may be eligible for a limit increase.
How to get approved for a high-limit business credit card
A strong business credit score, substantial revenue, and a low debt-to-income ratio will get you a higher limit on business credit cards. Issuers set each applicant’s credit limit based on their overall creditworthiness, weighing factors like personal credit, business income, and debt:
- Business credit history: A track record of on-time payments and responsible credit use is a crucial factor when credit card issuers assess your ability to manage credit. With a brand-new business or bad credit, it’ll be difficult to get approved for higher limits.
- Personal credit score: Even for business credit cards, providers usually consider your personal credit score, especially if you provide a personal guarantee. Excellent credit and minimal debt will enhance your business’s creditworthiness.
- Business revenue: Consistent and substantial revenue, along with profitability and minimal debt, demonstrates that your business can handle a higher credit limit.
6 best high-limit business credit cards
Each business credit card has its own fee structure, perks, and membership rewards.
We’ve narrowed down our list to the six best business credit cards with high credit limits to help you make an informed choice.
How to build business credit with business credit cards
If you haven’t established any business credit, opening a business credit card can help. Once you’ve done so, the credit card company will begin reporting your activity to business credit bureaus. Over time, making on-time payments and maintaining a low credit utilization ratio will help you qualify for a higher limit.
You can also build your business credit by doing the following:
- Offer a personal guarantee: Many lenders may require you to make a personal guarantee, which means if your business can’t pay its bills, you’ll personally pay the business’s credit card debt.
- Take advantage of sales-based underwriting: Ramp offers sales-based underwriting, so as long as your company generates meaningful revenue, you’ll likely be approved for an account.
- Open a secured credit card: With a secured business credit card, you’ll place a security deposit with the lender that becomes your credit limit. As long as you use your card responsibly, you’ll get your security deposit back in a predetermined time frame.
Getting your credit card is the first step. Next, it’s important to use it responsibly. Follow the tips in the section below to use your new credit card to build your credit score.
How to use high-limit business credit cards responsibly
High-limit business credit cards are effective financial tools to help you build your business, but if misused, they can harm your growth. Follow the four best practices below to ensure your credit card helps your business succeed.
1. Keep spending in check
Having a high credit limit doesn’t mean you should use it. In fact, it’s best practice for both personal and business credit cards to keep your spending below 30% of your credit limit. Going above this threshold may have a negative impact on your credit score. Moreover, keeping your balance low and manageable will make it easier to pay the bill on time.
2. Pay more than the minimum
Minimum payments typically only cover interest and a very small percentage of your balance. When you make minimum payments, you can expect to be in debt for a long time—and pay substantial interest in the process. Instead, try to pay off your credit card in full each month to avoid interest entirely. If you can’t pay it off each month, always make more than your minimum payment to keep debt, and the interest that comes with it, at bay.
3. Understand how payments are applied
If you have more than one business credit card, minimum payments are applied to the lowest-interest balance first. When you make higher-than-minimum payments, the excess is applied to your highest-interest balance first. This is another reason why it’s important to pay more than the minimum whenever possible.
4. Stay in the know
Check your monthly statement regularly to keep tabs on your debt load. Also, read every transaction to catch any potential fraud early. Reading over every transaction also gives you information about your spending habits that can help you better manage your business.
Access higher credit limits with Ramp
Ramp is an expense management platform with integrated corporate cards that offer credit limits up to 30 times higher than our competitors. That’s because we use factors like cash on hand and sales data to determine spending limits rather than looking at your credit score.
Here are a few features you can expect from Ramp:
- Sales-based underwriting: You don’t have to have a business credit history to get Ramp. Take advantage of sales-based underwriting for easier approvals.
- High credit limits: Ramp offers credit limits that are up to 30 times higher than traditional business credit cards.
- Spend management tools: Ramp comes with tools to track business expenses and optimize spending, ultimately helping you grow your business.
- Unlimited physical and virtual cards: Give your employees spending power with unique rules and limits, alleviating the need for costly and time-consuming expense reimbursement programs.
.jpeg)
FAQs
Don't miss these
.png)
.png)
How 8VC resolved accounting coding challenges, increased spend visibility, and cut time to close with Ramp
.webp)
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- Credit limits up to 30 times higher than traditional credit cards
- Sales-based underwriting makes for an easier qualification process
- Advanced expense management automations and accounting integrations
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Business credit card with travel and purchase protections
- Card comes with a $10,000 minimum credit limit, with the opportunity to raise it
- 2% to 2.5% cashback rewards on purchases
- Free employee cards with custom spending limits
- Welcome bonus of $1000 if you meet spending requirements
- No foreign transaction fees
- "Flex for Business" provides payment flexibility on eligible purchases
- High annual fee
- Requires significant initial spend to unlock the sign-up bonus
- Limited expense management features compared to specialized cards
- Card comes with $5,000 minimum credit limit
- Points-based rewards with flexible redemption options, including cash back
- Offers 3x points on purchases in eligible spending categories like shipping, advertising, internet services, and travel bookings
- Welcome bonus of 100,000 points
- Unlimited employee cards
- Ability to transfer your rewards points to partner programs
- $95 annual fee
- Must spend $15,000 within the first three months of account opening to earn welcome offer
- Rewards program includes categories and limits that make it more complicated to earn maximum rewards
- No spend management capabilities beyond account alerts
- Business charge card that requires full monthly balance payments
- Designed for larger, higher-spending businesses
- Carrying a balance incurs a 2.99% fee
- 2% cashback rewards on purchases
- Unlimited cashback rewards
- 0% interest when used as intended
- $1,000 early spending bonus
- 2.99% monthly fee to carry a balance
- Must spend $50,000 in your first six months to access to $1,000 bonus cash
- Must spend $200,000 per year to access the $200 annual cash bonus
- Limited spending management features
- Travel rewards credit card focused on international travel
- Provides 5x membership rewards on flights and prepaid hotels booked through American Express Travel
- Additional rewards on eligible purchases
- The card comes with a $695 annual fee and 0% introductory APR, followed by a high variable APR
- 5x points on flights and prepaid hotels via Amex Travel
- 1.5x points on select business purchases and large purchases
- Complimentary Marriott Bonvoy Gold Elite and Hilton Honors Gold Status
- Access to travel perks and airport lounges
- No foreign transaction fees
- High annual fee of $695
- You must spend $15,000 in the first three months of card membership to qualify for the sign-up bonus
- The rewards program is relatively complex, so it may be difficult for some users to get the most out of the rewards program
- Benefits primarily focused on travel, less so on other business expenses
- Secured credit card that requires a security deposit, which becomes the account’s line of credit
- You can choose your own credit limit
- Offers interest on your security deposit
- Designed to help build business credit through responsible use
- Improve your business credit report quickly when you use the card responsibly
- Low annual fee compared to other secured credit cards
- Choose your own credit limit
- Earn interest on your security deposit
- Access instant rebates with over 40,000 retailers
- Your security deposit must be 110% of the credit limit you choose. So, if you want a $50,000 credit limit, you’ll need to make a $55,000 security deposit
- Although the annual fee is relatively low, you’ll still have to pay just to have the card
- Doesn’t come with any spending management features
