The Key Differences Between Personal And Business Credit Cards

image- Mar 11, 2020Credit Card Info0 comments

Does your business use a business credit card for business purchases or do you just swipe your personal credit cards? You may ask, what’s the difference? Here, in this post, we will discuss the key differences between personal and business credit cards.

Credit Reporting

The first and most important difference is credit reporting. Both personal and business credit cards will check your personal credit before approving you for a credit card. But when it comes to reporting the credit card monthly to the credit bureaus there is a big difference. Only your personal credit cards will report your account history and balances to the credit bureaus; business credit cards will not be reported. (Capital One and Discover are the only two major credit card issuers which report even their business credit cards to the personal credit bureaus.)

So if you carry a large balance on a business credit card, you can rest assured that the balance will not affect your credit score. But please note that if you end up being late on the payments then the credit card issuer will report the late payments even on your personal credit report.

Reports business cards on your personal credit report?
Amexno
Bank Of Americano
Barclaysno
Capital Oneyes, except the Spark Cash Card
Citino
Chaseno
Discoveryes
US Bankno
TD Bankyes
Wells Fargono

 

Building Credit

As we discussed above, business credit cards usually do not get reported to the personal credit bureaus. Therefore, business credit cards will not help you build credit. You have to make sure that besides your business credit cards you also have several personal credit cards which will help you establish great personal credit history.

Higher Credit Limits

A business usually spends more money on credit cards than the average personal consumer. Business credit cards were designed to work for business; therefore, a business credit card will a lot of times get approved for a higher credit limit than a personal credit card.

Benefits And Rewards

A business credit card will usually come with a benefit and rewards package which is more cut out for a businesses needs. For example, the Amex Platinum Business card will earn a $200 statement credit at Dell computers, and the Chase Ink Business Cash earns 5% cashback at office supplies stores. These are all benefits that were designed to work better for a small business owner.

Less Legal Protection

The Card Act Signed by congress in 2009 only protects consumer credit cards. This gives consumer credit cards better legal protection in regards to interest rate hikes, penalty APR guidelines, over the limit fees and more.

Double Bonuses

Business credit cards are usually considered a different product in regards to welcome bonuses. Even if you already earned a welcome bonus on a personal version, you can still receive the welcome bonus again on the business version of the card. For example, if you received a welcome bonus on the Delta Gold Card you can still receive a new welcome bonus on the Delta Gold Business Card.

Business Credit Reporting

Business credit cards sometimes report the account history to the business credit bureaus. This will help you build business credit. Here is a list of which credit card issuers report on-time payments to one or more of the business credit bureaus:

 

Dun And BradstreetSmall Business Financial Exchange (SBFE)Experian BusinessEquifax Business
AmexConflicting data pointsyesnono
Bank Of Americanoyesnono
Barclaysnononono
Capital OneyesyesyesConflicting data points
Citiyesyesyesyes
Chaseyesyesyesyes
Discoveryesnoyesyes
US Bankyesnonoyes
Wells Fargonoyesnono

 

It’s important to note that you can apply for a business credit card even if you never formed a separate business tax ID for your business. Read in this post a step by step guide on how to fill out the application.

Was this article helpful?

image
Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments

Trackbacks/Pingbacks

  1. Get A Business Credit Card With Bad Credit – Brex for Startups and Ecommerce | Help Me Build Credit - […] most credit card issuers will not report a business card on your personal credit report, more info here). That…
  2. Capital One Spark Cash Will No Longer Report On Your Personal Credit Report - Help Me Build Credit - […] reason why this matters is in regards to Chase 5/24. Most business cards don’t get reported on your personal…

Recent Posts

Follow us

image

Click here to subscribe to
our WhatsApp channel

Todays
best offers

image

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info
image

Chase Ink Business Unlimited

Earn $750 (75,000 points) after $7,500 spent within the first 3 months. Intro 0% APR for 12 months on purchases.

more info
image

JetBlue Card

Earn a total of 100,000 points after a total of $6,000 spent within the first 12 months. See offer details for full offer. Intro 0% APR for 12 months on balance transfers.

more info
image

Chase Sapphire Preferred

Earn 60,000 points after $4,000 spent within the first 3 months.

more info

You May Also Like

Which Credit Cards Are Approving? December Update

Which Credit Cards Are Approving? December Update

Guess what, it’s been who knows how long, and the Covid pandemic is still going on. Some good news though came in yesterday. The US Senate and House have agreed to a new $900 billion stimulus deal which will provide a $600 payment for each family member. We all...

read more
How To Use Your Amex Airline Incidental Fee Credits

How To Use Your Amex Airline Incidental Fee Credits

Updated 01/19/21: As per many reports United Travel Bank is no longer working. So the year’s almost up and we’re getting lots of questions about how to use the airline fee credits quickly, before they expire. Let’s “fly” right in! Many Amex cards offer a credit called...

read more
image

Download link sent
succesfully

Got it*please check your promotional inbox
image

Error sending download link

Try Again