Business CC vs regular CC

[newUser0]

I am curious to know that is there any advantages of using the business Credit cards?

If yes, Can any one apply for business cards like we apply for regular cards?

[gdale6]

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@newUser0 wrote:

I am curious to know that is there any advantages of using the business Credit cards?

If yes, Can any one apply for business cards like we apply for regular cards?

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Business cards dont normally report to your personal credit file unless you personally guarantee the charges and then you default. It is a good way to keep personal & business expenses separate. If you have a legit business you can apply for cards but expect to personally guarantee them if you have less than 3 years of solid business performance. They will pull both your business & personal CRs if you guarantee the charges.

[user5387]

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@newUser0 wrote:

I am curious to know that is there any advantages of using the business Credit cards?

If yes, Can any one apply for business cards like we apply for regular cards?

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One advantage is keeping business expenses separate from personal.

Another advantage is that some business CCs have generous rewards, for example 5% at office supply stores and phone/internet services.

Some business CCs report to personal, and some don't.  Whether reporting to personal is good depends on your viewpoint.  I have Chase and Citi business CCs, and they don't report to personal, and I like it this way.  I believe that Cap One Spark is an example of a business CC that DOES report to personal.

You will probably need to provide a PG to get a business CC, and this involves pulling your personal credit.

[compassion101]

Usually some of the protections are not as strong for business cards. Perhaps someone else can expand on this.

[FinStar]

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@user5387 wrote:

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@newUser0 wrote:

I am curious to know that is there any advantages of using the business Credit cards?

If yes, Can any one apply for business cards like we apply for regular cards?

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One advantage is keeping business expenses separate from personal.

Another advantage is that some business CCs have generous rewards, for example 5% at office supply stores and phone/internet services.

Some business CCs report to personal, and some don't.  Whether reporting to personal is good depends on your viewpoint.  I have Chase and Citi business CCs, and they don't report to personal, and I like it this way.  I believe that Cap One Spark is an example of a business CC that DOES report to personal.

You will probably need to provide a PG to get a business CC, and this involves pulling your personal credit.

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+1

In addition to what's been mentioned OP, please be aware that Business CCs do not have the same protections (or oversight) as Personal CCs (i.e. in the event of disputes, reporting, etc).

[FinStar]

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@compassion101 wrote:

Usually some of the protections are not as strong for business cards. Perhaps someone else can expand on this.

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Correct.  For instance, the CFPB has not much jurisdiction (or limited powers) when addressing concerns associated with Business CCs, which fall under separate governance for business lending, even if the individual is the PG.

[red259]

In addition to other points mentioned with a biz card that does not report to your credit report you do not have to worry about it impacting your overall util. However, if someone has a PG and is late with paying the biz card then it does show up on their credit report just like it would with a personal card. 

[scenery_guy]

While some have mentioned that business cards don't have same protections offered to personal cards I can tell you from experience that when it comes to a dispute on a charge it's all the same. Both Chase and AMEX have resolved situations on business cards to my liking on a couple of occasions.