John Miller, Credit Cards Moderator
@john_miller
Yes, business credit cards can improve your personal credit, but only if the issuer reports your account information to the consumer credit bureaus. Many issuers only report business account activity to the personal bureaus if the account becomes delinquent. In these cases, a business card won’t help build your personal credit but could hurt it if payments are missed or the account is mismanaged.
Having a business card report to consumer credit bureaus isn’t always advantageous. On one hand, responsible use and on-time payments can boost your personal credit score. However, if your business faces financial difficulties and you struggle to maintain the account in good standing, both your business and personal credit scores may be negatively affected. For this reason, you may want to keep business and personal credit separate, using a regular credit card specifically to build your personal credit score.
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People also ask
Does applying for a business credit card affect your credit score?
Yes, applying for a business credit card affects your credit score in almost all cases. When you apply for a business credit card, the credit card issuer typically conducts a hard inquiry into your personal credit report, which will usually drop your score by around 5 to 10 points. This inquiry allows the issuer to assess your creditworthiness and determine whether to approve your application.
The reason why applying for a business credit card results in a...
read full answer by Chip Lupo, Credit Card WriterCan I use my business credit card for personal expenses?
No, you cannot use your business credit card for personal expenses, as most credit card issuers prohibit that practice. A personal expense here and there probably won’t draw any suspicion, but going overboard could lead to your account being suspended.
However, if you decide to use a business credit card for personal expenses, there are a few pros and cons you should be aware of.
Pros & Cons of Using a Business Card for Personal...
read full answer by Sebi Mitchell, Credit Cards ModeratorWhich business credit cards help build business credit?
Many business credit cards help build business credit by reporting monthly to business credit bureaus. Eight of the top 10 credit card issuers report to one or more of the major business credit reporting agencies: Dun & Bradstreet, Equifax, and Experian. Business credit cards from some issuers also report your account activity to the major consumer credit bureaus – Equifax, Experian, and TransUnion – which could help you build your personal credit history, as well.
... read full answer by Chip Lupo, Credit Card WriterDid we answer your question?
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