Can I use a personal credit card for business expenses?

You should get a business credit card if you own a small business and have good or excellent personal credit. Business credit cards are worthwhile for qualified applicants because they offer generous rewards, help separate business and personal expenses, provide high credit limits, and have flexible authorized user policies.

Business credit cards also come with a variety of business-specific benefits and features that can make your life easier and your business better. So, even though many business cards do have annual fees, you’ll more than get your money’s worth if you … read full answerpick the right one.

6 Reasons Why You Should Get a Business Credit Card

1. Lucrative rewards. Business credit cards are known for great rewards, and some business cards offer bonus earning rates on office supplies and other business-specific expenses. You may also be able to get a bigger initial bonus than with a personal credit card.
2. Separation of personal and business expenses. By using a business credit card for your work expenses and a separate card for personal spending, you make life much easier for yourself and for your accountant when it’s time to file taxes.
3. Higher credit limits in many cases. Many business credit cards have higher credit limits than personal credit cards. Higher credit limits give you more purchasing power, which can be especially useful for business funding or unanticipated expenses.
4. Business-friendly authorized user policies. Many business cards will let you add a lot of employees as authorized users for free. Most will also let you customize spending limits and track the purchase history of each card.
5. Business and personal credit building. Improving your credit standing can help you get good rates when you apply for loans and lines of credit later on. That said, not all business cards report to all of the business and personal credit bureaus. So if you want credit history added to both your business and personal credit reports, you should ask the card issuer about which bureaus they report to before applying for a card.
6. Extra perks to protect purchases. Businesses often spend more than individuals, so common credit card benefits, such as purchase protection and extended warranty protection, tend to have higher coverage limits on business cards.

Ultimately, you should get a business credit card if you can use the card responsibly. While business cards can be great assets, they can also cost businesses money and lower personal credit scores when used incorrectly. So, try to take advantage of all that business credit cards offer, but make sure you’re aware of the risks before applying for a card.

The best personal credit card for business expenses is the U.S. Bank Cash+ Visa Signature Card because it has a $0 annual fee and gives 2% - 5% cash back in flexible bonus categories. Cardholders can pick their two favorite categories from the list of options and earn 5% cash back on up to $2,000 spent each quarter. Their next favorite category gets unlimited 2% cash back.… read full answer

One downside: the bonus categories list is subject to change, and cardholders have to sign up for the categories every quarter before the rewards kick in. But a savvy business owner or employee can choose the ones that fit their business best each quarter, and earn 1% cash back on all other purchases. The U.S. Bank Cash+ card’s signup bonus isn’t bad, either: $150 after spending $500 in three months. That dollar amount is just shy of the national average signup bonus, but it’s easier to get than most bonuses, too.

The Capital One Quicksilver Credit Card is another smart entrepreneurial choice, with unlimited 1.5% cash back on all purchases and a 0% APR that can help facilitate large purchases. Chase Freedom Unlimited brings similar perks to the table as well.

Paying for business expenses with a personal credit card is legal to do. Keeping personal and business spending on separate cards is the best way to avoid an accounting nightmare, but there’s no law saying you can’t use personal credit cards for both. There are good reasons why someone might want to do it, too. Personal cards have more user protections than business credit cards, for example, especially when it comes to financing. Plus, employees often end up paying for business-related expenses on a personal card before being reimbursed. So, why not earn the best possible rewards in the process?

Best Personal Credit Cards for Business Expenses

• U.S. Bank Cash+ Visa Signature Card
• Capital One Quicksilver Card
• Chase Freedom Unlimited Card
• Capital One Venture Card
• Amazon.com Visa Card