Ratings Methodology for Small-Business Credit Cards

NerdWallet evaluates business credit cards on more than a dozen factors, including annual fee, welcome bonus, rewards rate, bonus categories and ease of use. We also weigh perks like interest-free periods, discounts, elite status and lounge access. NerdWallet’s business relationships have no impact on our star ratings.

We update individual card ratings in real time as card details such as perks, credits or sign-up bonuses change. Our editorial team also reviews our ratings factors annually, at a minimum, and adapts them as necessary to better reflect the evolving business and business card landscape.

Notable changes to our methodology for 2025

In 2025, we added the following factors to our business credit card ratings methodology:

• Employee cards: A card’s overall score was lowered if purchases on employee cards did not earn rewards and/or count toward welcome offer spending requirements.

• Consumer credit bureaus: A card’s overall score was lowered if the issuer reports all card activity to consumer credit bureaus, rather than just negative information like serious delinquency, which is the norm.

We also made a significant adjustment to our assumed annual spend to better reflect the current state of business owner spending. This key data point underpins our overall cash value calculation for business credit cards.

Our editorial team

NerdWallet's business credit card content, including our ratings, reviews and recommendations, is overseen by a team of writers and editors who specialize in business credit cards. The team has more than 80 years of combined experience covering small business and personal finance. Their work has appeared in The Associated Press, The New York Times, MarketWatch, Nasdaq, Entrepreneur, CNBC, American Banker, the "Today" show, ABC’s "World News Tonight" and other national and local media outlets. Each writer and editor follows NerdWallet's strict editorial guidelines to ensure unbiased coverage.

Meet our business credit cards team

How we rate business credit cards

Each card category — cash back, travel, hotel and airline — is evaluated separately, using different factors as appropriate. All categories have a base rating plus standard adjustments, which vary by card category.

Base rating

For cash-back and travel cards, the base rating is:

• Cash value: 75%.

• Simplicity: 25%.

For co-branded hotel and airline cards, the base rating is:

• Cash value: 75%.

• Scope: 25%.

Cash value is our estimate of the dollar value a typical business owner can realize by using the card as their primary method of payment for the first three years their account is open. We calculate this, in part, using publicly available data on average monthly credit card spend for U.S. business owners. Factors used in the cash value formula include, but are not limited to:

• Annual fee.

• Base rewards rate.

• Bonus category rewards.

• New-cardholder bonus offers.

• Anniversary or other bonuses.

• Cash-equivalent value of perks, credits or discounts that come with the card.

• Value of hotel or airline miles (for co-branded cards).

Note: We rate business cards on their standard, ongoing features and offers. Limited-time only promotions, short-term perks and targeted offers are typically not considered.

Simplicity reflects how easy it is to use the card — both in managing the account and in understanding, earning and redeeming rewards. Factors affecting the simplicity score include, but are not limited to:

• Complexity of the rewards structure (bonus categories, redemption limits, etc.).

• Obstacles to getting or using the card (membership requirements, restrictions on where/how you can use the card, etc.)

Scope reflects the rewards flexibility for airline and hotel business cards. It takes into account the number of destinations (airline) or properties (hotel) available through the brand, such as Southwest, Delta, Marriott or Hilton.

Standard adjustments

Adjustments are made for features that materially increase or decrease the value or usefulness of a business card but can’t be quantified as a cash equivalent. Like the base rating, adjustments can vary by card category and include the following:

• 0% introductory APR period for purchases and/or balance transfers.

• Customer service record of the card issuer.

• No preset spending limit.

• High or low credit score requirements.

• Fees not common for the card type.

• Penalty APR and when it applies.

• Excessively high APR.

• If and when the card issuer reports to consumer credit bureaus.

• Ability to apply for the card without a personal credit check and/or personal guarantee.

• Cards not available to a certain type of business entity (sole proprietors, for example).

• Employee card spending not earning rewards and/or not counting toward bonus requirements.

What our star ratings mean

Our star ratings are designed to help guide business owners, but the ratings should be just one piece of your overall decision. Cards that earn 5 stars are those that we believe will deliver the most value to the greatest number of businesses when used as intended. But your specific business needs and other factors, including where you bank, may make a 4-star or 3-star card a better fit.

Data collection and review process

NerdWallet currently evaluates more than 40 business credit cards, primarily widely available options from major issuers, including American Express, Bank of America, Capital One, Chase and U.S. Bank. We also evaluate a handful of cards from smaller issuers, including options like Capital on Tap and corporate cards like Brex and Ramp.