Does a Business Credit Card Affect Your Personal Credit?

Money Girl explains how a business credit card affects your personal credit report. 

Laura Adams, MBA
1-minute read

Does a Business Credit Card Affect Your Personal Credit?Q: "I'm self-employed and have a business credit card that I use to keep my business expenses separate from my personal expenses. Though the business card is in my name, when I recently checked my credit report, I realized that it isn't listed there. Does a business credit card affect your personal credit? If not, where does this credit activity go?"

A: Even though a business credit card may show your name, it won't appear in your personal credit report if you didn't include your personal credit in the card application.

Typically, a credit account issued to your business is tied exclusively to its business credit report. That's because the business is responsible for the debt, not you.

However, if you use your personal credit to qualify for a business loan or credit card, those accounts may appear on your personal credit report, or both your personal and business reports. You can request a copy of your business report from the 3 nationwide credit agencies: Experian, Equifax, and TransUnion.

If you prefer to use a personal credit card exclusively for business expenses, you can. The advantage is that it will help boost your personal credit if you manage it responsibly by making payments on time and keeping a low balance relative to your available credit.

However, the disadvantage of using personal credit for business purposes is that you'll be held personally liable if your business has financial trouble and defaults on an outstanding credit card or loan balance.

Businesswoman with credit card image courtesy of Shutterstock.


About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.