Business vs. Personal Credit Cards: Which Should You Use?

If you run a business, you can often choose between a personal card and a business card. Both can work, but they differ in how they are underwritten, how they are protected and how they help you keep records.

Why owners choose business cards

• Separation of spending. Keeping business purchases on a dedicated card simplifies bookkeeping and tax preparation.
• Employee cards. Many issuers let you add employee cards with spending controls.
• Business-focused rewards. Some cards reward categories such as office supplies, advertising or shipping.

Differences to understand

Consumer protections that apply to personal cards do not always apply in the same way to business cards. Many issuers also require a personal guarantee, which means you are personally responsible for the balance. Business card activity may or may not appear on your personal credit report, depending on the issuer.

How to choose

Compare the annual fee, rewards categories, employee-card terms and reporting practices. If your business is new, you may apply using your personal credit profile and your own income. Confirm eligibility and current terms with the issuer before you apply.