Business Credit Cards vs. Personal Credit Cards: Key Differences

Both business and personal credit cards give you access to a line of credit you can use to pay for expenses. Depending on the card, both could also let you earn points or miles, and offer balance transfers.

However, there are also some key differences. For example, business credit cards may offer the opportunity to earn points or miles on common business spending categories like office supplies while personal credit cards may let you earn more rewards on qualifying purchases such as groceries or shopping at department stores.

Here, we’ll look at some of the important differences between business and personal credit cards.

Who is eligible?

Eligibility requirements for business and personal credit cards can differ.

To qualify for a personal credit card, you must meet the card issuer’s creditworthiness, age and financial requirements.

Business owners – that includes independent contractors, freelancers and sole proprietors – could apply for a business credit card. If you have a side hustle that generates some revenue, you can typically apply for a business credit card. While you usually don’t need a formal business structure to apply, you may be required to provide your business name, revenue, and tax ID or Social Security number during the application process.

Credit limits

Business credit cards can come with higher credit limits compared to personal credit cards. This is because businesses often have larger expenses, such as inventory purchases, travel or employee-related costs.

Earning rewards

Both business and personal credit cards could have the option to earn reward points on qualifying purchases, but they may be tailored to different spending priorities.

Business credit cards are designed to meet the needs of business owners and may offer the ability to earn more points or miles on categories like office supplies, shipping or travel.

On the other hand, personal credit cards may be more tailored to individual spending habits. They may let you earn points or miles on categories like dining, groceries and entertainment.

Tools and features

Business credit cards can come with tools that help streamline operations, such as expense tracking or the ability to request cards for employees. Personal credit cards may offer features like budgeting tools and spending alerts, but they generally are not designed to manage business-related expenses.

Impact on creditworthiness

Personal credit cards can only impact your personal credit. Credit scoring models consider factors like credit mix, utilization, payment history, length of credit history and new credit.

Business cards can impact your business credit score as well as your personal credit score. If you’re asked to provide a personal guarantee when applying for a business credit card – which is common – your payment history, utilization and other behavior may impact your personal credit.

Choosing between a business and personal credit card

The right credit card depends on your financial needs and goals. A business credit card can help you keep your business and personal expenses separate. Depending on the rewards structure, you may be able to earn more points or miles on certain purchases. On the other hand, a personal credit card may be better suited for everyday expenses and may offer the ability to earn points or miles on categories like dining, groceries and entertainment. Evaluate your spending habits and the benefits each card offers to determine which option aligns best with your priorities.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.

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