Do I need to have a business credit card for my own company or can I use my personal credit card and just make sure I keep the records. I don't have a lot of expenses so keeping the records is not a problem.

Is there an advantage of having a business card (like company's credit score maybe?)

  • A rumor I can't back up is that personal cards have laws protecting them that business cards do not. I heard this on talk radio (Clark Howard) and I believe it, so look for disadvantages too.
    – MrChrister
    Oct 20 '10 at 17:58
  • 6
    "Professional cards aren't covered under the Credit Card Accountability and Responsibility and Disclosure Act of 2009, or Card Act for short". - Beware That New Credit-Card Offer, Aug 28 2010, Wall Street Journal. online.wsj.com/article/…
    – user296
    Oct 20 '10 at 20:04

It can certainly help build a credit score, but remember that businesses gain credit differently from individuals. Depending on the country, there isn't usually a national register of business credit ratings the way there is for individuals. The credit record you'd be gaining is with your own bank only.

Banks will usually base your business credit record on revenue and transactional loads rather than merely on having and holding a credit card. That said, it isn't always that easy to get a business credit card and so it is a useful thing to have for credibility with clients (depending on the type of work you do).

A credit card can also sometimes work out cheaper (and faster) for financing small overdrafts than a regular business overdraft facility. That said, I've found that larger loans over a five-year term can work out much cheaper for an established business than they would for an individual, even where the business itself has no history of using credit.


I would try to avoid mixing business expenditure with personal expenditure so a second credit card might be a good idea.

That said, I did get a business credit card for my company in the UK as I didn't want to be personally liable for the money that was spent on the business card (even though I owned 100% of the business) in case things went horribly wrong. As I didn't fancy signing a personal guarantee, this meant that the limit was quite low but it was good enough in most cases.


I would suggest at least getting a personal card that you only use for business expenses, even if you don't opt for a business card. It makes it very clear that expenses on that card are business expenses, and is just more professional. The same goes for a checking account, if you have one of those. It makes it easier to defend if you are ever audited, and if you use an accountant or tax preparer.


I finally got one to separate my business and personal expenses. It will make accounting at the end of the year a lot easier.

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