Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
Re: Which Business Credit Cards DO NOT report to the personal credit profile?

I think they are similar. Someone with a personal CC doesn't want to carry a balance just as much a biz with a biz CC. Why do most Americans carry a CC balance month to month? Because they over extended themselves and/or got themselves in a position where they can't pay it (e.g. life event like a job loss, etc.). Or maybe the cost of a couple-few hundred in interest each month is worth the price in carrying debt. No different in business. Maybe you need to float the cost of this or that temporarily and can't afford to pay it off at once. The only difference would be the allowable interest deduction for biz.

 

CCs are much easier than loans. App for a CC in 10 minutes and you're done. App for a loan and it'll take a half-day for the app alone, not to mention the financial you need to usually provide like P&L, balance sheet, statement of cash flows, etc.