Does a business credit card affect your personal credit?

• When you apply for a card.
  An issuer will typically still run a hard inquiry on your personal credit that will usually lower your personal credit score temporarily.
• If you default on your debt.
  Most business cards require a personal guarantee when you apply. This agreement permits the card’s provider to pursue payments from your personal accounts if your company isn’t able to meet its obligations. Your personal credit may take a big hit if you’re unable to repay your debt. If you want to avoid this risk, consider a business credit card without a personal guarantee.
• When your issuer reports account activity to consumer credit bureaus.
  Some issuers will report account activity to consumer bureaus in all cases. This means carrying high balances on your card can affect your personal credit. Other companies will report to consumer bureaus only if you fail to make card payments.

If this is an important point for you, check what an issuer’s policy is before applying.

Which business credit cards do not report personal credit?

Most business card issuers won’t report your payment activity or will report certain infractions only. However, some issuers will report all payment activity to consumer bureaus.

Keep in mind that because most issuers require a personal guarantee, they will check your personal credit when you apply for a business credit card.

Can I get a business credit card that won’t report to my personal credit?

Yes. You’ll find business credit cards whose issuers won’t report your payment activity to consumer credit bureaus. Other issuers will report payment activity only in certain instances, such as if your payments are very late.

When you submit a business card application, the issuer may check your personal credit. The issuer will also likely require a personal guarantee for your debt, allowing it to go after your personal assets if you fail to pay off your business card balance.

Which business credit cards minimally affect a personal credit score?

Our pick for a card that won't affect your personal credit

Brex for Startups

• The first corporate card for startups
• No personal liability or security deposit needed - your personal credit score won't be affected
• Minimum of $100,000 of funds in corporate bank account and US EIN required
• Earn 7x points on rideshares, 4x points on travel booked through Brex Travel, 3x points at restaurants, 2x points on software subscriptions and 1x points on all other purchases
• Get a credit limit 10 to 20 times higher than traditional business cards
• No foreign transaction fees
• Build business credit - Brex partners with Experian to report your on-time payments

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Name	Product	Rewards	Purchase APR	Annual fee
Ink Business Preferred® Credit Card		3x points on the first $150,000 on travel and select business categories annually, then 1x after and on all other purchases	15.99% to 20.99% variable	$95	100,000 bonus points after you spend $15,000 on purchases in the first 3 months after account opening. That's $1,250 toward travel rewards when you redeem through Chase Ultimate Rewards®	Apply now View details	Compare	loading Fetching your data...
Ink Business Cash℠ Credit Card		5% at office supply stores, on Internet, cable and phone up to $25,000 combined annually (then 1%), 2% on gas and dining up to $25,000 combined annually then 1% after that and on all other purchases	0% intro for the first 12 months (then 13.24% to 19.24% variable)	$0	$500 bonus cash back after you spend $3,000 in the first 3 months.	Apply now View details	Compare	loading Fetching your data...
Ink Business Unlimited℠ Credit Card		1.5% cash back on all purchases	0% intro for the first 12 months (then 13.24% to 19.24% variable)	$0	$500 bonus cash back after you spend $3,000 on purchases in the first 3 months after account opening.	Apply now View details	Compare	loading Fetching your data...
United℠ Business Card		2x miles on United, restaurants, gas stations, office supply stores, local transit and commuting, and 1x miles on all other purchases	16.49% to 23.49% variable	$0 intro annual fee for the first year ($99 thereafter)	Earn 75,000 miles once after spending $5,000 in your first 3 months.	Apply now View details	Compare	loading Fetching your data...
Universal Premium Mastercard®		3 cents off per gallon when you buy 30,000 or more gallons in a month plus 3 cents off at the Retail Savings Network	27.24% variable	Up to $120	Earn 3 cents off per gallon when you buy 30,000 or more gallons in a month plus 3 cents off at the Retail Savings Network.	Apply now View details	Compare	loading Fetching your data...
Southwest Rapid Rewards® Performance Business Credit Card		3x points on Southwest Airlines, 2x points on social media and search engine advertising, Internet, cable, and phone services and 1x points on all other purchases	15.99% to 22.99% variable	$199	Earn 70,000 points when you spend $5,000 on purchases in the first 3 months. Plus, earn an additional 30,000 points after you spend $25,000 on purchases in the first 6 months.	Apply now View details	Compare	loading Fetching your data...
Brex for Startups		7x points on rideshares, 4x on Brex Travel, 3x at restaurants, 2x on software subscriptions and 1x points on all other purchases	N/A	$0	The first corporate card for startups. No personal liability or security deposit needed, meaning your personal credit score won't be affected.	Apply now View details	Compare	loading Fetching your data...
Southwest Rapid Rewards® Premier Business Credit Card		2x points on Southwest Airlines and 1x points on all other purchases	15.99% to 22.99% variable	$99	Earn 60,000 points after spending $3,000 in the first 3 months and 6,000 points after your card anniversary.	Apply now View details	Compare	loading Fetching your data...
Brex for Ecommerce		N/A	N/A	$0	60-day interest-free financing for e-commerce businesses.	Apply now View details	Compare	loading Fetching your data...
BP Business Solutions Mastercard®		Up to 6 cents per gallon on fuel and 3.5 cents per gallon on diesel depending on number of gallons purchased per month	27.24% variable	Up to $120	Up to 6 cents per gallon on fuel and 3.5 cents per gallon on diesel depending on number of gallons purchased per month.	Apply now View details	Compare	loading Fetching your data...
ARCO Business Solutions Fuel Card			18.24% to 27.24% variable	Up to $180	The ARCO Business Solutions Fuel Card gives your drivers access to greater performance with high quality fuels at ARCO locations. The card provides fleet managers with detailed reporting and individual spending controls for each and every driver.	Apply now View details	Compare	loading Fetching your data...

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3 tips to protect your personal credit score from a business credit card

Healthy credit comes with monitoring your finances — ever important when you’re running a business. Even if your business card provider reports to the commercial bureaus, work to protect your personal credit with these pointers:

1. Pay on time.
   Many issuers report delinquencies or negative info to the personal bureaus, even if those payments are for business purchases.
2. Stay under your limit.
   Spending conservatively and even paying your bill in full can keep your credit utilization low, making it easier to qualify for other credit cards or business loans, should you need them.
3. Keep your business spending separate.
   Draw a line between your personal and business finances and build a stronger business credit score by using your card for business expenses only.

Do I need a business card that won’t affect my personal credit?

If you’re worried about potential hiccups with your business credit card, you can look into cards that won’t report to the personal credit bureaus. But serious delinquencies — late payments of 60 days or more, defaulting on your account or reports to collections — may end up on your personal credit history regardless.

If you’re confident in your business’s financial health, instead focus on weighing cards that can best benefit and maximize your business spending, whether with a low interest rate, a balance transfer promotion or tiered rewards.

Should I be worried about affecting my personal credit?

The short answer is: it depends. Learn the mechanics of how your business card activity might affect your personal credit. For example, it’s likely that your personal credit will be impacted slightly when you apply for a business credit card.

You’ll also want to know your provider’s policies on payment history reporting. The good news is most of the time, your business card activity won’t affect your personal credit. But this might not be the case in certain situations — for example, if you default on your debt. Also, certain issuers will report your payment activity to consumer bureaus in all instances.

If your issuer does report to consumer bureaus, watch your balance on your business credit card as your credit utilization will affect your credit score.

Bottom line

For most business owners, the need for a business credit card can be a sign that you’ve made it — your company is robust enough to need separating from your personal spending, and you can take advantage of rewards designed for your spending habits.

Still, your business activity could negatively affect your personal credit score without knowing the terms you’ve agreed to. Minimize any risk to your personal credit by managing your business spending carefully.

To find a card to best suit your unique business needs, read our comprehensive guide to business cards.

Frequently asked questions

• How much will my personal credit score drop when I submit a credit card application?

  A hard inquiry will typically decrease your score by just a few points — often five to 10 points according to FICO.

• How do you increase your business credit score?

  Getting a business credit card and making payments consistently is a good way to do this. Also, you can establish tradelines with vendors and suppliers who report your payments to business credit bureaus.

• If my personal credit score isn't where I want it to be, how do I improve it?

  The best way is to stay patient: Consistently pay your bills on time and keep your credit utilization low. Together, these factors compose 65% of your FICO credit score.