Business credit cards vs. personal credit cards comparison

If you’re focused on maximizing your spend and tapping into benefits that will cater to your company’s growth, a personal credit card may not be enough. Business credit cards offer benefits like higher spending limits and cash back in the areas that matter to support your company’s growth and financial health.

Here’s a deeper look into how business credit cards compare with personal cards.

Key takeaways

• Business and personal credit cards generally work in the same ways. But business credit cards are specifically designed for a business’s unique needs.
• Some of the main differences between a business and a personal credit card include their credit limits, rewards offerings, introductory offers and consumer protections.
• A business credit card may cater more to your company’s spending and growth compared with a personal credit card. 

Business and personal credit cards work very similarly but can differ in how they’re meant to be used and the benefits they offer. Personal cards are geared toward personal spending, whereas business cards cater to professional use. Therefore, you can expect differences in spending limits, rewards and more.

Business credit cards typically have higher credit limits than personal cards. Lenders may set business credit limits based on personal and company income so you can borrow more and make higher monthly payments. Cards with no preset spending limits allow for flexible spending that adapts alongside your business, such as the Spark Cash Plus card.

Business and personal credit cards typically offer rewards programs, like cash back or miles. However, business credit card rewards are usually tailored to common business purchases and expenses with perks business owners can leverage to save money and grow their business.

For example, business cards may offer rewards on software subscriptions, office supplies and business travel. But personal credit cards may offer rewards on everyday purchases like groceries and restaurants. Finding a credit card rewards program that fits your business needs should help you maximize your rewards and reinvest in your business growth. 

Introductory offers and rates can be an option for personal and business credit cards. But while business credit cards can have appealing intro offers, personal credit cards tend to offer them for longer periods.

For example, personal credit cards may have 12-to-21-month 0% introductory APR offers that apply to card purchases and balance transfers. Business credit card promotional offers are usually for less time and typically don’t apply to balance transfers.

Business credit cards may give you more insights into your business finances than personal cards. Many business credit card issuers offer:

• Itemized end-of-year statements
• Free employee credit cards with spending controls
• Record-keeping solutions and integrations

While you could add a trusted authorized user to a personal credit card, employee cards offer more control over your business finances.

As a business owner, you may have two credit profiles. One consists of your personal credit history. The other details your business credit history.

Personal credit cards won’t help you improve your business credit scores. In general, personal credit cards impact your personal credit, while business credit cards impact your business credit. This is because personal credit card issuers typically don’t report to business credit bureaus. And most business credit card issuers only report to business credit bureaus.

But business credit cards may impact your personal credit scores. This can happen when your credit card issuer also reports to consumer credit bureaus or requires a personal guarantee. 

Personal credit cards have consumer protections through the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act). These protections generally don’t apply to business credit cards.

Some issuers extend protections as a courtesy for your partnership. To understand which protections they offer, be sure to read the business credit card’s terms and conditions.

It’s ultimately your decision whether a personal or business credit card fits your needs. Personal credit cards may be easier to qualify for if you have lower credit scores. But if that’s not the case, you may consider a business credit card to:

• Establish business credit: A business credit card can help you quickly establish your business credit. And over time, it could help you build a healthy business credit profile to help your business grow.
• Separate your business expenses: A business credit card may help you organize your expenses. It could make it easier to track your spending, categorize your expenses and identify tax-deductible purchases. 

Still comparing business and personal credit cards? Here are a few frequently asked questions to consider:

Access to credit is essential for any business. With a credit card in hand, you can ensure your business expenses are handled appropriately and effectively. Personal credit cards may work for some business owners. But business credit cards are designed with business needs in mind. 
Capital One is committed to helping small businesses grow. If you’re ready to explore business credit card options, check out Capital One’s Spark Business Cards.