Can you use a business credit card for personal use?

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. A higher credit line gives 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.

Notable Business Credit Cards in 2023

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 money and lower personal credit scores when used incorrectly. So, try to take advantage of all that business credit cards offer, but be aware of the risks before applying for a card.

No, it is not illegal to use a business credit card for personal use. However, there are reasons you may not want to. After all, business credit cards are designed with business owners in mind, so the cards’ rewards and benefits are geared more toward business needs than consumer needs. Using a business credit card for personal expenses can also make things a little harder when it’s time to file your taxes. You cannot deduct any of the personal expenses charged to a business credit card as business purchases. If you do have too many deductions, it’s likely the IRS will get involved, and that can make things very painful.... read full answer

The rewards with business credit cards are also different from what a consumer might need. For instance, many business credit cards reward you most for expenses like office supplies and telecommunication services. Business credit cards often come with other features that aren’t as important for consumers, too. For instance, many business credit cards have very detailed expense tracking and spending reports.

Another reason to avoid using a business credit card for personal use is that business credit cards aren’t covered under the CARD Act. The Credit CARD Act of 2009 introduced a number of regulations to protect consumers from abusive practices by credit card issuers. However, business credit cards were excluded from the CARD Act. This means business credit card users don’t have to be given notice before their interest rates get increased, among other things. While many business credit card issuers have voluntarily extended the CARD Act protections, it’s not a requirement.

If you’re interested in a business credit card for personal use because of the rewards, you may be able to find a consumer credit card with rewards to fulfill your needs. There are lots of really good options available right now, including offers with big rewards bonuses and high credit limits.