Business vs. personal credit cards: How they compare

If you’re focused on maximizing your spending 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 rewards in areas that matter to support your company’s growth and financial health.

Here’s a deeper look into business versus personal credit cards.

What you’ll learn:

• 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 credit card 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 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 business needs. This means you can expect differences in spending limits, rewards and more.

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

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 and have perks business owners can leverage to save money and grow their business.

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 do. Many business credit card issuers offer:

• Itemized end-of-year statements
• Free employee credit cards with spending controls
• Recordkeeping 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.

While there are some key differences between business and personal credit cards, there are a few similarities to keep in mind:

• You’re responsible for repayment for both types of cards, but business credit cards typically require a personal guarantee.
• A personal credit check is typically required before getting approved for both business and personal credit cards—corporate credit cards are an exception.

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:

• Separate your business and personal 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.
• Track employee spending: As you start employing workers, you might apply for a business card to gain employee insights, monitor their spending and earn rewards on employee purchases.
• Increase your spending capacity: Business credit card credit limits tend to be higher, so you may opt for this type of card if you need more buying power.
• Get targeted business benefits: Business credit cards typically come with perks and benefits tailored to business owners’ needs.

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 Business Cards.