What You Need to Know About Getting A Business Credit Card


There is so much information that people are unaware of when it comes to business credit cards. Do you really need one if your business is small? Can you get one? Is this just going to mean more debt on my behalf if I get one and use it for my business expenses as it applies to my personal credit? What’s the deal? Some people are a little more in-the-know than others, but it doesn’t change the fact that there are still many of us in the world who might have a small business and no idea what we might do about a business credit card. I know, for one, that it’s a great idea to obtain a business credit card if you have any type of business, but it’s not a great idea to go into it blind.

There is no such thing as a stupid question save for the one that is left unasked. However, we have a list of the most common questions business owners pose regarding their business credit cards. We want to share those answers with you so you are educated, aware, and confident before you apply for a business credit card of your own.

What’s My Credit Limit?

The one question so many business owners have is about their credit limit. They want to know if it will be high, if it will be low or if it will be something that they can even work with. After all, who wants to apply for a business credit card and try and make business purchases and pay for business-related items with a low limit? It’s not really worth the effort to many who assume they might not qualify for much of a credit limit.

The good news is that many lenders are perfectly well aware that business owners tend to charge far more than the average consumer, and they are happy to provide businesses with a higher initial limit. For the most part, you might expect an initial credit limit of anywhere from $10,000 to $25,000 depending on your credit score and your business. This makes running a new or small business easier than you thought possible in the beginning.

Does My Business Credit Card Affect My Personal Credit?

The short answer is no. Sadly, it’s not just a plain no; there are a few stipulations in place regarding this answer. No, your business credit does not affect your personal credit, but your personal credit does affect your business credit. For instance, you do have to apply for a business credit card, and creditors need something to reference when determining whether or not you are a viable candidate. They will check your personal credit history to find out if you are the kind of person they want to issue credit to. Even if you have a lot of personal debt, being someone who pays it on time and is responsible with your finances otherwise will show favorably when you go to apply for a business credit card.

Am I Liable for Business Debts?

This is another gray area. If your business credit card is a commercial liability, it is one that can allow you to forgo any personal responsibility for your business debts. This means if your business goes under and you are unable to pay those bills, your personal possessions will not be seized or taken from you in any way. You can be sure you will be able to live and breathe just a bit easier in this situation than you will if you have a business credit card that is joint and several liability.

This one means you are responsible for your business debts. What you want to do is know what you are responsible for, what your rights are, and how you will go about handling your business credit when the time comes. Know what is what, and don’t sign anything until you are certain that you can protect yourself and your family, as well as your business.

Can I Get Cards for My Employees?

You can, and you should. The best news is that if you have employees that frequently go on business trips for you or make purchases for you while running errands, you can even dictate the amount they can spend on their card without worry that they will go crazy on your dime on a bad day (not that you would ever hire someone like that, I’m positive). You can apply for additional cards for your employees, dictate the limits and receive a detailed account of what they spend each month. It’s a wonderful way to make business just a bit simpler and lot more enjoyable for you when the time comes. It’s also a great way to minimize the amount of time you have to spend going through expense reports and figuring out who spent what and who needs a refund for what.

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