Do Business Credit Cards Affect Personal Credit

Did you know that out of all the business credit cards available in the marketplace a small percentage report only to the business credit reporting agencies?

The good news is not all business credit cards impact your personal credit. If a card issuer only reports your credit limit, spending, revolving debt and payment history to a business credit agency then your personal credit will not be affected.

This is especially useful when making large business purchases using your business credit card. As you know credit utilization is one of the major factors that impact your FICO® scores. In my opinion, to completely separate business reporting from personal reporting, business owners should only use business credit cards that report solely to the business credit agencies.

The fact is credit card issuers have different policies when it comes to credit reporting. Now keep in mind the majority of business credit cards will require a personal guarantor so in the event that the business defaults on its payment obligations the guarantor will be ultimately responsible.
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