Does your business use a business credit card for business purchases, or do you just swipe your personal credit cards? You might wonder, what’s the difference? In this post, we'll explore the key differences between personal and business credit cards.

1. Impact on Credit Score

The most significant difference lies in credit reporting. Both personal and business credit cards require a personal credit check before approval. However, the way they report to the credit bureaus differs. Personal credit cards report your account history and balances to the credit bureaus, while most business credit cards do not.

If you carry a large balance on a business credit card, it won't affect your personal credit score. However, if you’re late on payments, the issuer may report the delinquency on your personal credit report.

Do Business Cards Report on Your Personal Credit Report?

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2. Building Credit

Since business credit cards typically don't report to personal credit bureaus, they won't help build your personal credit. It's essential to maintain a mix of personal credit cards alongside your business cards to establish a strong personal credit history.

3. Higher Credit Limits

Businesses often spend more than the average consumer, so business credit cards are designed with this in mind. As a result, business credit cards often come with higher credit limits than personal credit cards.

4. Benefits and Rewards

Business credit cards usually offer benefits and rewards tailored to business needs. For instance, the Amex Platinum Business card offers a $200 statement credit at Dell, and the Chase Ink Business Cash earns 5% cashback at office supply stores—both perks that cater to small business owners.

5. Less Legal Protection

The Card Act of 2009 provides stronger legal protections for consumer credit cards, including restrictions on interest rate hikes, penalty APRs, and over-the-limit fees. Business credit cards are not covered by these protections, offering less legal security.

6. Double Bonuses

Business credit cards are often treated as distinct products when it comes to welcome bonuses. This means you can earn a bonus on a business card even if you've already received one on the personal version. For example, if you earned a welcome bonus on the Delta Gold Card, you can still receive a new welcome bonus on the Delta Gold Business Card.

7. Business Credit Reporting

Some business credit cards report your account history to business credit bureaus, helping you build business credit. Here's a breakdown of which issuers report to which bureaus:

Business Credit Reporting

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It's important to note that you can apply for a business credit card even if you haven't established a separate business tax ID. For more details, check out our step-by-step guide on how to complete the application.