Head to head
Business credit cards vs Business line of credit
Both are revolving. One is nearly instant and expensive to carry, the other takes underwriting and costs a fraction as much on a balance.
| Business credit cards | Business line of credit | |
|---|---|---|
| Typical amount | $1,000 to $100,000+ per card | $10,000 to $5 million |
| Cost | 0% intro to 30%+ APR carried | Prime + 1% to 25%+ APR, by lender type |
| Time to funding | Minutes to 2 weeks | Same day to 4 weeks |
| Term | Revolving | Revolving, renewed annually |
| Relative expense | $$$$$ | $$$ |
Cost bands are editorial judgements expressed in APR-equivalent terms so products quoting factor rates and discount fees can be compared with products quoting interest. They indicate relative expense, not quotes. Methodology.
Business credit cards
High costUsually chosen when
- Spending is paid off monthly, making the credit free and the rewards real
- You need something today with no underwriting
- Clean expense separation matters for the books
Business line of credit
Usually chosen when
- A balance will be carried for more than a month or two
- The amount exceeds a typical card limit
- You need cash rather than a payment method
Common questions
- Do business cards affect my personal credit?
- It varies by issuer. Many report only to business bureaus in good standing but report delinquencies personally, and nearly all require a personal guarantee. Ask the issuer directly, since it differs by card rather than by bank.
Other comparisons
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