Adam McCann, Financial Writer
@adam_mcan
The main differences between business credit cards and personal credit cards are that business cards are only available to business owners and authorized business representatives, and they have higher credit limits. In addition, business cards and personal cards have different user protections and rewards.
Business Credit Card vs. Personal Credit Card
| Category | Business Credit Card | Personal Credit Card |
| Who can get one? | Business owners and authorized business representatives | U.S. citizens or permanent residents over age 18 with an SSN (sometimes ITIN or passport) |
| Approval | Based on personal credit score and financial history | Based on personal credit score, income, and financial history |
| Consumer protections | Not covered by CARD Act, but some issuers offer protections | Full CARD Act protections |
| Common rewards rates | 1% - 5% back | 1% - 5% back |
| Common bonus rewards categories | Advertising, transportation, phone/cable/internet service, fuel, travel, dining | Travel, dining, groceries, gas, department store purchases, entertainment |
| Credit limits | Depends on business and personal income. Generally higher limits than personal cards. | Depends on personal income. Generally lower limits than business cards. |
| Reports to personal credit bureaus? | Sometimes | Yes |
| Hard pull of personal credit required? | Usually (cards for large corporations and some other select cards are excluded) | Yes (except in very rare cases) |
It’s important to note that you can get a personal credit card to use for business purchases. Likewise, you can make personal charges on a business credit card. However, it’s best to not mix business and personal purchases on the same card, as that makes bookkeeping messy.
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People also ask
What are the disadvantages of a business credit card?
Some disadvantages of business credit cards are the potential for expensive annual fees and the likelihood of a personal credit inquiry as well as personal liability for unpaid balances. Business credit cards can also have high interest rates, and they typically provide fewer user protections than consumer cards.
Disadvantages of Business Credit Cards
- Expensive annual fees:
Not all business cards have annual fees, but the most expensive cards charge hundreds...
What's the difference between business credit and personal credit?
Your business credit and personal credit are not all that different. Business credit is based on your business's financial history and is tied to your business's EIN number, while personal credit is based on your personal spending history and is tied to your Social Security number.
Even though creditors today tend to move away from relying on personal credit alone when judging the financial health of a business, your personal credit history will still...
read full answer by WalletHub, Financial CompanyCan I use a personal credit card for business expenses?
Yes, you can use a personal credit card for business expenses - there’s no law preventing it. However, just because it’s allowed doesn’t mean it’s wise, as mixing personal and business spending can create financial and organizational complications.
Why Personal Cards Don’t Work for Business Expenses
- Personal credit cards mostly have lower credit limits. This means you wouldn’t be able to make big purchases. On the other hand, business cards generally have higher limits. ...
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