Yes. Most business credit cards check personal credit. Banks and credit unions usually check business credit card applicants’ personal credit history because almost all business credit cards require a personal guarantee, meaning the cardholder is liable for any balance the business can’t pay. Business credit card issuers need to know that applicants can handle this responsibility, which explains why applicants will see a hard credit inquiry on their personal credit report.
While it is possible to get a business card that doesn’t require a personal guarantee, and therefore does not check your personal credit, this shouldn’t be how you decide which business credit card to get. Apply instead for the best card you can qualify for, with rewards, rates and fees that suit the financial needs of your business.
There are some business credit card issuers that will not report small-business credit card activity to consumer credit bureaus: Bank of America, BBVA, Citi and Wells Fargo. The rest may report negative information only if your account is seriously delinquent.
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 factor into your approval and credit limit when you apply for business credit.… read full answer
That is because most business credit cards require the business owner to personally guarantee the debt, so if the balance isn’t paid off the owner will be liable.
This also means that the business account activity may show up on the owner’s personal credit reports. Depending on each card issuer’s policy, it may show up only if the owner defaults, or all activity may be reported.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.