I wasn't sure whether to post this here or in the Business Credit section.
I'm planning on applying for the CFU or CIU in the next 4-6 months. Possibly sooner. I'm looking to pair it with my CSP and use both as my daily drivers and maximize UR points earning across all spend.
I can apply for the CIU via sole proprietor however my business is very small, so i would be using the CIU for most if not all personal spend, at least for the immediate future. The CIU SUB is much more enticing than the CFU which is why i'm interested.
I know the fine print of the CIU is to use it for business spend only, but i've heard of people using it for personal with no issues.
I'm looking for help and opinions on the route to take. Would the CIU be okay to use for mostly personal spend for the foreseeable future? Or should i stick with the CFU to be safe? Even though i'd rather have 50k points than 20k points.
A couple of months ago, I was in the same boat as you, trying to decide between these two cards. Ultimately, I chose neither one of them, but that's a different story 
When it comes to deciding which card to get, you have to look at the key differences and see which will help you the most long-term.
Benefits of the CFU:
1) Earn 3% cash back on up to $20K, no spend requirement.
2) 0% APR for 15 months (vs. only 12 months for CIU)
3) It's a personal card, so if you intend to keep it longterm, it's a good foundation card for your credit.
Benefits of the CIU:
1) Better SUB (but only if you can hit the spend requirement).
2) If you are under 5/24, it won't impact 5/24.
3) Superior purchase protection. ($10,000 per claim, vs $500 per claim).
Now, some people will say that you need to be more careful with your spend on a business credit card, but from what I can tell, it's a non-issue. Do they really care if you take your business credit card and spend $5000 on clothes for yourself, instead of $5000 on an industrial paper shredder? Besides, if they WANTED to make business credit cards more restrictive, they certainly could. But they don't, because money is money; a swipe is a swipe.
@BronzeTrader wrote:
@B_Slow1 wrote:Now, some people will say that you need to be more careful with your spend on a business credit card ...
Chase is known to be sensitive to almost everything. You do not want to risk it.
If you charge borderline items, such as Starbucks coffee, gas and food to the business card, Chase is fine. But if you consistently charge personal items to the card, then it is a time bomb. When it is review time, Chase can see the clear abuse of using buisness card for personal use, which is against card T&C.
If this is for personal use, get a personal card.
+1
There is more than one issue at play here. It's not only the T&C.
(1) Yes, it is a violation of T&C of all business cards to use them for 'personal use'. While lenders may look the other way about it, it could always become an issue. But there are other more important points:
(2) You give up the ability to build your credit file with your spending and account age because business accounts rarely show up on a personal credit report. So this hurts you. And it also could hurt the lenders.
In reality, this is one of the major reasons that lenders have separate underwriting criteria for business accounts and don't want you mixing expenses. If you have a bunch of personal debt on "business cards" that a lender doesn't see when they pull your personal credit report, they might extend you credit on a personal line that you wouldn't normally be able to qualify for or to repay. This is why it's such taboo that could lead to action from lenders. Essentially, it can be interpreted as a type of fraud. When you apply for personal credit, your credit report is supposed to show ALL your personal debts. So you are misrepresenting yourself to them.
(3) Moreover, as a consumer, you give up protections afforded you under the 2009 CARD Act regulating consumer debt. These include:
- Limits on ability of banks to hike interest rates (45 days notice required for personal accounts; none on business)
- Limits on Universal Default if you were to have adverse payment history on other accounts (45 days notice required for personal; none on business)
- Limits on late fees (no limit required on business)
- Limits on over-limit fees (no limit required on business)
- Payments may not be applied the same (on personal, higher interest rate balances must be applied first.)
- Payments must be due no earlier than 21 days after statement and on same due date monthly (neither applies to business cards.)
- Right to opt-out of changes to account terms and pay off within 5 years for personal cards. (does not apply to business cards.)
- Double-cycle interest billing is prohibited now for personal cards (does not apply to business cards.)
While most banks including Chase may be using similar terms right now on their business cards compared to their personal card offerings, there is no federal requirement for them to continue to do so under the CARD ACT. You're on your own.
Business cards are designed for separation of true 'business' expenses from personal finances. They aren't meant to be used by consumers for everyday personal purchases.
