Can I Use a Personal Credit Card for Business Expenses?

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Advantages of using business credit cards
- Free employee cards with spending controls. Some consumer cards require you to pay a fee for additional cards and authorized users. Most business cards, on the other hand, offer large numbers of employee cards for free. The account holder can even monitor the use of each card and set restrictions on when and how the card is used.
- Higher credit limits. Credit limits will always vary from one borrower to another. But in general, business credit cards offer greater spending power. That can come in handy if you find yourself in a pinch and need to pay a few invoices while waiting for more cash to come in.
- Rewards specific to business spending. Some cash-back business credit cards tailor their bonus categories to business needs, like internet and cell phone bills, office supply stores, business consulting services and even online advertising. Consumer credit cards are more likely to offer bonus rewards on categories like groceries and streaming subscriptions. Both types of cards have options with high rewards rates on gas and dining, though.
Credit score impact of business vs. personal cards
When to consider using a personal credit card for your business
- Your personal credit history is lacking. There are only a handful of secured business credit cards. So if you have bad credit (typically considered a FICO score below 630) or fair credit (a FICO score between 630 and 689), you won’t have many business credit card options. It may be wise to open a personal credit card designed to build your credit. Then, if your credit improves, you can apply for a business card in the future.
- You want to transfer balances. Balance transfer business credit cards are pretty limited, too. If you want to transfer business credit card debt onto a card with more favorable terms and pay it off over time, a personal balance transfer credit card with a 0% APR intro period may be your best bet.
- You won’t charge very much. If your business expenses are relatively low — if it’s a side hustle, for instance — the advantages that business cards offer may not be worth much to you. And you’ll probably have a better shot at earning a credit card welcome bonus on a personal card, since those tend to require less spending.