6 Major Differences Between Business and Personal Credit Cards
Business and personal cards work similarly, but report to different credit bureaus and may have different credit limits.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Small-business credit cards function much like personal credit cards. But business credit cards support the expenses of a company, not an individual. They generally offer higher limits and business-specific rewards categories — but fewer consumer protections.
It’s important to keep your business and personal finances separate. Getting a business credit card is a simple way to do so.
Here are the major differences between business and personal credit cards.
» MORE: What is a business credit card?
1. Business credit cards have higher credit limits — usually
Business credit cards consider both personal income and business revenue when determining your credit limit. Personal credit cards only consider personal income.
Higher limits let you tap into extra capital as needed. This can be especially useful if your business has fluctuating operating costs. For instance, say you have to stock up on inventory for the holiday season or buy supplies in bulk.
You can get a business card with no revenue. But it will likely limit the size of your line of credit.
For example, limits for the Capital One Spark Cash Select start at just $2,000. A personal card may match or surpass that number.
Some issuers automatically raise limits after a few months of consistent use. You can also request an increase.
New Bonus Offer From our Partner
$2,000
2. Business credit cards may have more targeted rewards categories
Like consumer cards, many business credit cards have flat-rate cash back on all purchases. Most business owners should have one of these cards. They usually have no annual fee.
Some cards pay higher rewards rates on certain bonus categories. Both personal and business cards may reward gas, travel and dining. But business credit cards offer higher rates on things like office supplies and online advertising.
Some personal and business cards have rewards caps. They’re usually higher for business cards since businesses generally have more spending power.
For instance, the Chase Ink Cash pays 5% cash back on your first $25,000 in combined spending at office supply stores and on internet, cable and phone services. Then, the rewards rate drops to 1%.
Compare that to the Chase Freedom Flex, which offers 5% cash back on certain bonus categories too — but caps spending at just $1,500 per quarter, or $6,000 per year.
Neither of those cards charges an annual fee. More premium cards, with higher annual fees, generally have higher caps. Consider the Chase Ink Business Preferred, a business card with a $95 annual fee. It offers 3X points on your first $150,000 in spending on shipping, online advertising, Internet and phone services and travel.
3. Business credit cards can help build your business credit score
Personal credit cards typically report card activity to the three major consumer credit bureaus. Changes to your credit limit, credit usage and payment history (positive or negative) can impact your personal credit score.
Small-business credit cards primarily report to business credit bureaus. This affects your business credit score. Like your personal credit score, your business credit score represents how risky it is to lend your business money.
A strong business credit score can help bolster your application for business loans and other financing.
Your personal credit score is part of business credit card applications. When you apply, the issuer will make a hard inquiry on your credit. That may result in a small, temporary hit to your personal credit score.
Business card issuers sometimes report negative activity to consumer credit bureaus. That means late payments and serious delinquencies can lower your personal and business credit scores.
Capital One may share more than that. Multiple Capital One business credit cards report all usage to consumer and commercial bureaus. Only the Capital One Spark Cash Plus and Capital One Venture X Business do not. Those will still show up if you miss payments, though.
» MORE: How to build business credit
NerdWallet rating 4.9 /5 | NerdWallet rating 4.6 /5 | NerdWallet rating 4.4 /5 |
Annual fee $0 | Annual fee $0 | Annual fee $0 |
Intro APR 0% intro APR on Purchases for 12 months | Intro APR 0% intro APR on Purchases for 12 months | Intro APR 0% intro APR on purchases for 12 months from the date of account opening |
Recommended credit score 690-850 (Good - Excellent) | Recommended credit score 690-850 (Good - Excellent) | Recommended credit score 690-850 (Good - Excellent) |
4. Business credit cards may offer spending controls
Keeping your personal and business finances separate is a must. First, it makes bookkeeping much simpler. Second, depending on your business structure, it may help shield your personal assets if your company faces legal trouble.
Small-business credit cards also make tracking and managing your business expenses easier. For example, most business credit cards offer free employee cards with customizable spending limits.
Some companies, like U.S. Bank, go well beyond that. It gives business owners a full dashboard that captures receipts, categorizes spending and exports information to your accounting software.
Personal credit cards are designed with one person or household in mind. So they have little need to offer those kinds of features.
5. Business cards tend to offer shorter 0% intro APR periods
Lots of personal credit cards offer Introductory 0% APR periods. And they often last 15 months or longer.
That’s not the case with small-business credit cards. A handful have introductory 0% APR terms. But they tend to be shorter — usually 12 months or fewer.
They also generally apply to new purchases only. Right now, the U.S. Bank Triple Cash Rewards Visa® Business Card is our only top business credit card with an intro APR on balance transfers.
6. Business credit cards have fewer consumer protections
Consumer protection laws, such as the Credit Card Act of 2009, generally don't apply to small-business credit cards.
For instance, on a small-business card, your APR could potentially change overnight. You could be charged exorbitant late fees for small infractions.
What business and personal credit cards have in common
You're personally on the hook for repayment. With personal credit cards, that's probably clear. But business credit cards usually require a personal guarantee — a promise that you’ll repay what you borrow even if your business can’t.
Both can technically be used for business expenses. There’s no law against using a personal credit card for business spending. (Issuers may include in their terms and conditions that you can’t use a business card for personal expenses, though.) Whichever you choose, make sure you use the card assigned to your business only for business purchases.
How corporate cards compare to other credit cards
Corporate credit cards are issued to companies, not to individual business owners. They differ from both business and personal credit cards.
Unlike personal and business cards, corporate card issuers check your business financials instead of your personal credit to determine your eligibility. You usually don’t have to sign a personal guarantee, either.
But corporate cards aren’t a fit for smaller businesses. You’ll need a business entity and strong financials — potentially venture capital funding or millions of dollars in annual revenue — to qualify.
1.5%
Cashback$750
2%-5%
Cashback$2,000
Find the right credit card for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.