Credit Card Question & Answer

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » What is the difference business credit card vs. personal credit card?

What is the difference business credit card vs. personal credit card?

Answered by , at
Add to Favorites:

Most people have multiple credit cards for multiple uses. Some may have a fixed card for doing all their transactions. Irrespective of their needs and requirements people often carry more than three or four cards. It has turned into a status symbol and also a tool that makes transactions and payments easier especially when it comes to bulk purchases. If you have a business credit card rather than personal credit card, it is useful for tracking bulk purchases and to have a better idea of the transactions occurring.

There are no limitations or criterion for people to get a business credit card. It worked like any other card and in place of the business name the applicant should enter their own and the tax ID would be their social escort number. This will be considered as a sole proprietorship and comes with a lot of advantages. The same company may offer both personal credit cards and business credit cards but you will see clear differences in the offer and conditions.

Firstly you can get a larger credit limit on your business credit card than on your personal credit card. Credit card companies know that businesses will of course need to spend more and make larger purchases and hence will provide a more extensive credit limit. A higher credit limit means a better credit score, so there is more than one direct advantage to this.

Another factor is that there will be more attractive bonuses and rewards available on a business credit card as opposed to a personal credit card. Businesses will spend more every month and so credit card companies will offer more attractive rewards so that their card will be preferred over another as there is a lot of competition to rope in customers. There will be attractive cash back and reward offers along with even a sign up bonus for many business credit cards in the market.

There are also advantages like a 0% on balance transfer and this will work for many business people as they can use the money for the start up and then pay back later. Since you are applying for a card under sole proprietorship and getting all these advantages, it will make sense to prefer it over a personal credit card. But there may be requirements to spend at least a certain amount in order to keep the card in case of some banks.

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
No Annual Fee
For Bad Credit

Other Questions in