How many business credit cards should I have?

For smaller businesses, two to three business credit cards might be sufficient—one card for general business expenses and another that optimizes for earning travel rewards. Larger businesses, however, may need more cards, such as separate cards for different departments or business credit cards for multiple employees.

There’s no one number that works for every business. It depends—specifically, on what your company’s needs are and how reliably you can pay off your credit card debt. Most small-business owners and entrepreneurs can benefit from having at least one business credit card. Using that card responsibly can help you separate personal and business expenses and start building your business credit.

Beyond that, the right number of business credit cards depends on your company’s spending habits. Your ideal set of business credit cards will maximize the benefits of that spending — without growing more unwieldy than you can manage.

Can my business have multiple credit cards?

Yes, you can have multiple business credit cards. There’s typically no limit on the number of cards you can have overall, but some issuers may have their own restrictions.

There’s no limit to the number of business cards you can apply for, but credit card applications typically trigger a hard inquiry on your credit report. This could impact your business credit score, especially if you apply for many cards within a short period.

Typically, getting a business credit card relies on your personal credit, not factors like revenue or time in business. That means your credit history can also affect your ability to get multiple business credit cards, especially if you try to open too many cards too quickly.

Should you have multiple business credit cards?

Having multiple business credit cards can be advantageous for managing cash flow, organizing expenses, and earning perks—all important upsides for any small business. Additionally, having multiple credit accounts can increase your company’s total available line of credit, which can be useful in the case of emergencies or unexpected expenses.

However, managing these accounts responsibly is crucial to avoid falling into debt or negatively affecting your business's credit score. After all, American Express, Capital One, Chase, and the rest of the major business credit card issuers report to the same business credit reporting agencies.

Some small business owners might find that one or two cards are enough, while others might benefit from having several cards with different purposes and rewards programs. For example, if your small business has a lot of business travel expenses, you might consider using a card with better travel rewards in addition to your primary credit card.

When should I get a business credit card?

Consider getting a business credit card when your business starts incurring regular expenses. This could be as soon as you begin making dedicated purchases for your company, even if you're a sole proprietor or freelancer. A business credit card helps separate business and personal finances, simplifies expense tracking, and can build business credit.

Furthermore, if you're looking to streamline cash flow, need a credit line for unexpected costs, or want to earn rewards on business spending, a business credit card can be a valuable tool.

How many employee cards should I have?

The best credit cards for small businesses allow cardholders to get as many employee credit cards as needed. These are separate physical or virtual cards with their own credit card numbers. They draw on the same line of credit as your primary card, however, so neither card issuers nor business credit bureaus view them as separate credit accounts.

Which begs the question: “How many business cards should I order?”

Some card issuers don’t limit the number of employee cards you can have. And when there are limits, they tend to be high enough for many small-business owners — for instance, American Express business cards come with up to 99 employee cards for free.

It can make sense to issue employee credit cards to anyone who does frequent spending on behalf of your business. Just make sure you set up controls to limit how much each employee spends, if possible, and monitor their activity.

Factors to consider when deciding how many credit cards to have

Before deciding how many credit cards you should have, you’ll want to consider the following factors:

Credit score

Your company’s credit score is a major factor to consider when applying for multiple cards. According to Dun & Bradstreet, a business credit score of 80 to 100 is considered low-risk, which is generally a good credit score. A strong credit report will give lenders an indication of your ability to manage credit responsibly.

Debt-to-income ratio

Your debt-to-income (DTI) ratio measures how much debt your business has in comparison to your income. A higher DTI can make getting approved for multiple cards difficult, so keeping yours as low as possible is important.

Business size and revenue

The size and type of your business can also influence how many cards you should get. Larger businesses, for example, may be able to get approved for more cards than smaller ones. Additionally, your business revenue can be a factor in determining approval.

Credit utilization rate

Your credit utilization rate, also known as credit utilization ratio, is the amount of credit you use relative to the total amount of credit you have available. Generally, you should try to keep your credit utilization rate at around 30% or lower. This shows lenders that you’re managing your credit responsibly.

Credit history

A longer, positive credit history will make applying for business credit cards easier and may result in better terms or credit limits. The length of your business credit history should coincide with the age of your business, or at least the timeframe when your business first began using credit. Lenders will look for an established business credit history before approving multiple cards.

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Benefits of having multiple credit cards—and drawbacks

As with any financial decision, having multiple business credit cards has advantages and disadvantages. So, why have multiple credit cards?

Benefits

• Spending power: An additional credit card increases the amount of credit you can use. Having more than one card can allow you to make larger purchases or spread out costs across multiple cards.
• Increased rewards: Many business credit cards offer rewards, such as cashback or points, for purchases made with the card. Having multiple rewards credit cards can mean more savings. Additionally, some cards offer a 0% intro APR, which could allow your business to make a significant purchase you can pay down over time interest-free.
• Building business credit: Multiple lines of credit can help build your business credit score over time. Using your cards responsibly by keeping your credit utilization rate low and making payments on time makes you more attractive to lenders and improves your profile with the major business credit bureaus.
• Greater convenience: With multiple credit card accounts, you won’t have to worry about running out of available credit when you need it most

Drawbacks:

• Extra costs: Managing multiple business credit cards can be expensive, as there may be additional fees and interest charges
• Higher credit utilization: Having multiple cards can increase your credit utilization rate, which could hurt your credit score if it gets too high
• More responsibility: Managing multiple cards requires careful planning to make sure you don’t miss payments or exceed your credit limits

How to choose another business credit card

While a basic cash-back card might be a good starting point, you can optimize your business spending with a strategic approach to credit cards.

Here's how to choose your next business credit card:

• Find unique value: Don't just add another card for the sake of it. Look for cards that offer unique benefits beyond what you already have. Consider cards that excel in specific areas, like travel rewards, high cash-back rates on essential business expenses, or employee card programs.
• Prioritize value over fees: While no-annual-fee cards offer flexibility, premium cards with valuable perks might be worth the investment. Carefully weigh the annual fee against the potential rewards and benefits.
• Focus on sustainable spending: Never open a credit card without a clear plan for how you'll manage and repay it. Credit cards can be expensive if not used responsibly.
• Dial in your management strategy. Track all your cards in one place with a spend management platform like Ramp. Designed to make your business-finance-related-headaches a thing of the past, Ramp combines business credit cards, expense management, bill payments, accounting, and reporting into a single use solution.

When should I add another business credit card?

You might want until you’ve demonstrated responsible spending with your first business credit card before you add another one to your lineup.

Alternatives to multiple business credit cards

The best credit cards, especially those with high limits, typically require an excellent credit score. That puts some of these cards out of reach for many small businesses or new ventures. While you should probably have at least one credit card on hand to cover short-term business expenses and build business credit, consider some alternatives:

Small business loans

If you’re concerned about your ability to repay your credit card debt quickly, or if you’re looking to make a large, one-time purchase that would inflate your credit utilization ratio, consider a low-interest business loan. The average interest rate for small business loans is typically lower than the average credit card, and they often have lower eligibility requirements as well.

Business lines of credit

A business line of credit is a credit account that allows you to borrow funds up to a certain limit, repay them, and then access those funds again as needed. It functions similarly to a credit card but typically offers a higher credit limit, better interest rates, and lower eligibility requirements. While you won’t get the ancillary benefits of some business credit cards, like travel rewards, a business line of credit can be a great alternative, especially if you need a higher credit limit.

Tips for managing multiple business credit cards

While having multiple business credit cards can offer some benefits, sensibly managing them is key. Here are a few tips to help you manage your cards effectively:

• Establish clear spending limits: Decide in advance the maximum amount you’ll spend with each card. This can help you avoid overspending and minimize your credit utilization ratio.
• Pay your bills on time: Your payment history is a crucial piece of your business credit score. Missing payments can result in late fees, penalty interest rates, and a lower credit score. Establish a budget and payment schedule to make sure you make all your payments on time.
• Know the terms and conditions: Read through the terms and conditions before applying for a new credit card to understand the fees, rewards, and other relevant details
• Track your spending: Track all your purchases and payments to make sure you stay within your spending limits and budget

Manage all your cards in one place with Ramp

Whether your business uses one credit card or 10, Ramp can help you manage them all. With Ramp, you can easily keep track of all your business cards in one place and view updates in real time. Our comprehensive software combines corporate business credit cards, expense management, bill payments, accounting, and reporting, streamlining your financial processes.‍

You can gain control over your spending with Ramp’s unlimited virtual credit cards, zero-touch expenses, and cashback rewards—all with no annual fees. Managing your business finances with our automated software saves companies an average of 5% annually.