Business credit cards vs personal cards

What's the difference between a personal and a business credit card? And with which can you get a better deal?

You’re a small business owner and your operation is growing. At this time, you might be wondering whether you should stick with your personal credit card or get a business card.

The answer is that as your business grows, a business credit card will usually become more necessary to fulfil some specific needs. But there are a few downsides to be aware of.

Compare business credit and charge cards

Table: promoted then other popular deals
Name Product Ratings Customer rating Finder rating Purchases Annual / Monthly fees Rewards earn rate Representative APR Link Key benefit Representative example
Capital on Tap Business Credit Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
34.3%
£0
1 point per £1 spent
34.3% APR (variable)
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More Info
Uncapped 1% cashback on card spending. Exclusive savings at Dell, Hertz, Hotels.com and more. Upgrade to Capital on Tap Business Rewards Card for £99 pa to earn Avios and receive 10,000 bonus points when you spend £5,000 on your card in your first 3 months.
Representative example: When you spend £1,200 at a purchase rate of 34.3% (variable) p.a., your representative rate is 34.3% APR (variable).
CASHBACK
Barclaycard Payments Select Cashback Business Credit Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
26.2%
£0
1% cashback uncapped
26.2% APR (variable)
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More Info
1% cashback uncapped on business spending. You could receive a welcome bonus of up to £85 cashback. Earn £85 cashback for spending £5,000 or more across the first three statement months. Subject to application, financial circumstances and borrowing history. Eligibility and T&Cs apply. Apply by 22nd June 2023.
Representative example: When you spend £1,200 at a purchase rate of 26.2% (variable) p.a., your representative rate is 26.2% APR (variable).
Capital on Tap Business Rewards Credit Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
12.7%
£40
1 point per £1 spent
20.1% APR (variable)
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More Info
Uncapped 1% cashback or Avios on card spending. Receive 10,000 bonus points when you spend £5,000 on your card in your first 3 months. Exclusive savings at Dell, Hertz, Hotels.com and more.
Representative example: When you spend £1,200 at a purchase rate of 12.7% (variable) p.a., your representative rate is 20.1% APR (variable). Annual fee £99 per year.
Barclaycard Select Business Charge Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
N/A (this product is a charge card).
£42 per annum
N/A
3.6% APR (variable)
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More Info
Access exclusive offers through Barclaycard Business Rewards. Including, but not limited to, exclusive pre-sale tickets plus discounts on hotel bookings, dining out and car hire. Terms apply.
American Express Business Gold Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
N/A (this product is a charge card).
Year 1 - £0, Year 2 onwards - £175
1 point per £1 spent
N/A (this product is a charge card).
Go to site
More Info
Earn 20,000 Membership Rewards® points when you spend £3,000 in first 3 months of Cardmembership. Earn 1 Membership Rewards® point for every £1 spent thereafter.
American Express Business Platinum Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
N/A (this product is a charge card).
£650
1 point per £1 spent
N/A (this product is a charge card).
Go to site
More Info
Earn 40,000 Membership Rewards® points when you spend £6,000 in first 3 months of Cardmembership. Terms apply. Earn 1 Membership Rewards® point for every £1 spent thereafter.
British Airways American Express® Accelerating Business Card
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
26.9%
£250 per annum
1.5 points per £1 spent with selected partners
2 points per £1 spent elsewhere
105.5% APR (variable)
More Info
Earn 30,000 Avios welcome bonus when you spend £5,000 in the first three months of Cardmembership. Earn 1.5 Avios for every eligible £1 spent on card and 2 On Business Points for every £1 spent with BA on eligible flights. 10,000 bonus Avios for every £20,000 spent (max £60,000 pa) per calendar year.
Representative example: When you spend £1,200 at a purchase rate of 26.9% (variable) p.a. with a fee of £250 per annum, your representative rate is 105.5% APR (variable).
CASHBACK
Juni Business Card (only for ecommerce companies)
Finder score
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
N/A (this product is a charge card).
£0
1% cashback
N/A (this product is a charge card).
More Info
Made for ecommerce companies only. Earn 2% cashback for your first 30 days, up to 1% thereafter on all eligible Juni card spend.
CASHBACK
Moss Business Credit Card
Not yet rated
Not yet rated
Not yet rated
N/A (this product is a charge card).
Subject to plan
0.4% cashback
N/A (this product is a charge card).
More Info
CASHBACK
Barclaycard Premium Plus Business Credit Card Mastercard
Finder score
★★★★★
User survey
★★★★★
★★★★★
User rating
★★★★★
Expert analysis
0% for 6 months reverting to 19%
£150 per annum
0.5% cashback
55.1% APR (variable)
More Info
2 complimentary airport lounge passes annually, worldwide travel cover, discounted forex rates plus 0.5% cashback on eligible spend with a cap of 400 per year. T&Cs apply
Representative example: When you spend £1,200 at a purchase rate of 19% (variable) p.a. with a fee of £150 per annum, your representative rate is 55.1% APR (variable).
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6 differences between a business credit card and a personal card

  • Credit limit. A business credit card will probably have a higher credit limit than you’d get with a personal card. When expenses are high, you might prefer not to strain your personal credit line.
  • Spending controls. Many business cards are designed to have employees added to your account. For that reason, your provider will probably give you extensive tools to manage spending, including downloadable purchase records, spending summaries, expense controls and more.
  • Build business credit. Usually, you won’t build business credit through a personal credit card. Business credit could be helpful down the line, as it can help you obtain loans, insurance and other products.
  • Different benefits. You’ll find more business-oriented benefits with a business card. One typical example is free employee cards, which makes it easier to distribute spending privileges and control expenses.
  • Purchase protection. A noticeable downside of business credit cards is that, unlike personal credit cards, they aren’t covered by Section 75, so you won’t get protection on your purchases.
  • Cost. This very much depends on the card, but in general, business credit cards tend to feature higher annual fees and interest rates than personal credit cards.

Can I use my personal credit card for business expenses?

Yes, it is possible to use a regular credit card for business expenses. However, as your business expenditure grows, it may be more beneficial to get a business credit card to keep your personal and business finances separate and build up a business credit score. You’re also likely to get a higher credit limit and additional cards for your employees for their expenses.

Can I use my business credit card for personal expenses?

Yes, but we don’t advise it. A top benefit of a business credit card is organising your business spending. When it comes time to work out accounting and taxes, you’re a step ahead with business spending on a designated card.

Putting your personal expenses on your business credit card can also impact your business cash flow. Even if your business is small and it can sometimes feel like your personal and business finances are closely intertwined, you should always keep them separate. It will allow you to plan and budget more accurately and safeguard your personal finances if something goes wrong with your business.

Finally, you most definitely can’t do it if you are an employee who’s been assigned a company credit card. You could lose your job and face legal consequences, among other things.

Pros and cons of business credit cards compared to personal credit cards

Pros

  • A higher credit limit may be available.
  • Use it regularly to improve your business credit score, which can then give you access to better rates on future cards or business loans.
  • You can get additional cards for the rest of your team if you need to.
  • It allows you to neatly organise your business finances and keep them separated from your personal ones.
  • You might be able to connect it directly to your accounting software.
  • You can get rewards and benefits that are targeted to your business.

Cons

  • You may still be personally responsible for the debt on a business credit card if you sign a personal guarantee.
  • There’s no purchase protection.
  • You have less credit card deals to choose from.
  • A business credit card can be more expensive.

The bottom line

Ideally, you want to be using a business credit card for your business expenses and a personal credit card for your personal use. The advantages of a business credit card include a higher credit limit, the opportunity to build up a business credit score and better tools to manage your business finances (such as additional cards and accounting software integration).

However, you also need to be aware of the catches. With a business credit card you won’t get protection on your purchases. There aren’t as many business credit cards to choose from and in many cases they feature higher fees or interest rates.

All in all, using a personal credit card can be okay while your business is small and you don’t have to provide your employees with additional cards. However, as your business grows, getting a business credit card will probably become a much more practical and money-savvy solution.

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