You probably are reading this article because you typed “Business Credit Cards That Don’t Report to Personal Credit Report” into a search engine and landed here. Welcome! This article will provide insights into the best business credit cards that don’t report to personal credit, without focusing on key features such as fees, APRs, and rewards.
But the funny thing is that the question should actually be written the other way around:
“Which business credit cards report to personal credit reports?”
That’s actually a much easier question since most business credit cards only show up on your personal credit file in two ways:
- The hard inquiry when you apply for a credit card, including small business credit cards (which still may affect your personal credit score in a small way for a very short time).
- If you are late or delinquent on your payments (i.e. missed a minimum payment).
Now let me quickly debunk something related. Many “finance gurus” have made videos that imply or outright state that you are not personally liable for charges on a small business credit card.
This could not be more false and it’s written into every small business credit card application agreement. Take a look if you don’t believe me! Perhaps the confusion stems from liability on a “corporate” business card but trust me, none of you are getting one of those.
You do assume personal liability for all charges on small business credit cards thanks to the personal guarantee you give when you apply.
With that myth now busted, let’s continue!
Understanding Business Credit Cards
Definition and Benefits
Business credit cards are specifically designed for the financial needs of businesses, offering a convenient way to make purchases, manage expenses, and build credit. These cards come with a range of benefits, including rewards programs, cashback offers, and purchase protection.
One of the most significant advantages of using a business credit card is the ability to separate personal and business finances. This separation simplifies financial management and reduces the risk of commingling funds, which can lead to accounting complications and potential legal issues. Additionally, business credit cards can help businesses establish a credit history, which is crucial for securing loans, lines of credit, and other forms of financing in the future.
By using a business credit card, entrepreneurs can also take advantage of various perks tailored to business needs, such as higher credit limits, expense tracking tools, and employee card options.
Why Should You Care If Your Business Credit Card Reports Your Balances to Your Personal Credit?
Two reasons:
- A high balance on a business credit card that reports to personal credit bureaus makes it look like you have high personal utilization of your credit which is bad for your credit score, as if the balance was on a personal credit card. That can wreak all sorts of havoc if you have high business spend.With a business credit card that does not report to personal credit bureaus, which is most small business credit cards, your business spending has no impact on your personal credit score (beyond the hard inquiry when you apply) unless you are delinquent. Certain business credit card issuers may report activities, such as late payments, to consumer credit bureaus, which could negatively affect personal credit scores.
- If you are more than a casual credit card user, you may be familiar with the Chase 5/24 rule that will cause you to be denied for a new Chase card if you have opened 5 or more personal credit cards in the past 24 months. When a business credit card reports to the personal credit bureaus, it will appear to Chase as a new personal account and count towards that limit.
How Business Credit Cards Report to Credit Bureaus
Personal Credit Report vs. Business Credit Report
When it comes to credit reporting, business credit cards can interact with both personal and business credit bureaus, depending on the issuer and the specific card. Personal credit bureaus, such as Equifax, Experian, and TransUnion, track individual credit histories, while business credit bureaus, like Dun & Bradstreet, Experian Business, and Equifax Business, focus on business credit activity.
If a business credit card reports to a personal credit bureau, the cardholder’s personal credit score can be affected. This is because personal credit bureaus include business credit card activity in the individual’s overall credit history when reported by the issuer. High balances or missed payments on a business credit card that reports to personal credit bureaus can negatively impact personal credit scores.
On the other hand, business credit bureaus only track business-related credit activity. Information reported to these bureaus does not affect personal credit scores, allowing business owners to build their business credit profile without impacting their personal credit. This distinction is crucial for entrepreneurs who want to protect their personal credit while growing their business. However, the rest of this article will only discuss personal credit bureaus and which small business credit cards report to them. We will not be discussing business credit bureaus.
Which Business Credit Cards Report to Your Personal Credit File?
Now that we have established why you would care if a business credit card reports to your personal credit and some myths around it, let’s answer the question at hand.
And this question (the reverse of the more popular question asked in the title of this article) is the easier question simply because most small business credit cards don’t report to your personal credit. So it’s easier and more clear to tell you which do!
Here’s a list of small business credit cards that DO report to personal credit bureaus:
- Capital One Spark Miles for Business
- Capital One Spark Cash Select
- Capital One Spark Miles Select
- Capital One Spark Classic
- Capital One Spark Cash (relaunched in 2024): this 2% – $95 annual fee card is now confirmed to report to personal credit.
- Discover IT Business Credit Card (Discontinued)
That’s it! And even though it looks like all Capital One small business cards affect your personal scores, that’s not true. There are two newer Capital One cards that do not.
Using business credit cards responsibly can help build a strong business credit score, which is crucial for securing financing and credit accounts for businesses. OK, OK – I mentioned the business credit bureaus one last time… 😉
Which Business Credit Cards Do Not Report to Personal Credit Bureaus?
That leaves a plethora of options that do not report to your personal credit file – again, except for a hard inquiry when you apply and again if you have any negative payment history – late payments, delinquencies, etc can all appear on your personal credit report from any of the below credit cards. Understanding which business credit cards do not report personal credit can help you avoid adverse impacts on your personal credit histories.
These small business credit cards will not otherwise report to your personal credit file:
- Chase Ink Business Preferred® Credit Card
- Chase Ink Business Unlimited® Credit Card
- Chase Ink Business Cash® Credit Card
- Chase Ink Business Premier® Credit Card
- Capital One Venture X Business
- Capital One Spark Cash Plus
- The Business Platinum Card® from American Express
- American Express® Business Gold Card
- The Blue Business® Plus Credit Card from American Express
- The American Express Blue Business Cash™ Card
- The Hilton Honors American Express Business Card
- World of Hyatt Business Credit Card
- Southwest® Rapid Rewards® Performance Business Credit Card
- Southwest® Rapid Rewards® Premier Business Credit Card
- Delta SkyMiles® Reserve Business American Express Card
- Delta SkyMiles® Platinum Business American Express Card
- Delta SkyMiles® Gold Business American Express Card
- Marriott Bonvoy Business® American Express® Card
- United℠ Business Card
- IHG One Rewards Premier Business Credit Card
- Citi® / AAdvantage Business™ World Elite Mastercard®
- Wells Fargo Signify Business Cash
- Bank of America Business Advantage Customized Cash Rewards
- Bank of America Business Advantage Unlimited Cash Rewards
- Bank of America Business Advantage Travel Rewards
- Bank of America Platinum Plus Mastercard
- Barclays Wyndham Business Earner credit card
- Barclays JetBlue Business Credit Card
- Bank of America Alaska Airlines Business Credit Card
As you can see, the number of business credit cards and business credit card issuers that won’t report positive activity to your personal credit is many times longer than the number of cards that will.
PS: We have a pre-filtered list of small business credit cards that won’t report to your personal credit report in our Card Explorer. < – Feel free to bookmark that page for future reference!
We also have a complete list of the best business credit cards ranked by welcome bonus offer.
Pros and Cons of Using Business Credit Cards That Don’t Report to Personal Credit
Benefits of Separating Personal and Business Finances
Using business credit cards that don’t report to personal credit offers several significant benefits:
- Separating Personal and Business Finances: By using a business credit card that doesn’t report to personal credit, entrepreneurs can keep their personal and business finances distinct. This separation simplifies financial management and reduces the risk of commingling funds, which can lead to accounting issues and potential legal complications.
- Protecting Personal Credit: Business credit cards that don’t report to personal credit help protect personal credit scores from the impact of business credit activity. High balances or missed payments on business credit cards won’t affect personal credit scores, providing a safeguard for personal financial health.
- Building Business Credit: These cards can help businesses establish a credit history, which is essential for securing loans, lines of credit, and other forms of financing. A strong business credit profile can open doors to better financing options and terms.
Overall, business credit cards that don’t report to personal credit can be a valuable tool for entrepreneurs looking to separate their personal and business finances and protect their personal credit scores.