Does a Business Credit Card Affect My Personal Credit?

Business credit is difficult to separate from personal credit, which can be devastating if your business doesn’t do well, and you’ve had a perfect credit score for your entire life. The risk that you run in opening a line of credit with your business is a possible negative effect on your personal credit. The last thing that you want is for your credit to go down just because your business does. Then, you’ll have to go through the hassle of repairing it, including drafting a credit repair letter, finding a reputable service, and dealing with the distrust from creditors in the meantime.

The bad news is that it’s almost impossible to erase personal liability from your business credit card completely. The good news is that, if you have bad credit with your business card, there are some things that you can do to improve the aftermath.

How to Tell the Difference on Your Report

First, know the main differences between your personal and business credit reports. The lines can blur, but you can reduce the overlap by understanding the distinctions and ensuring that you keep that line clear.

There are key differences to look for on your credit report, the biggest of which will be that, on your business credit report, there’ll be information about your company and your business credit score. On the personal report, there’ll be dispute instructions instead.

Other than that, the principles of building good credit are quite similar. It involves establishing credit relations with those with whom you do business, both on a consumer level and a business level.

Reduce the Damage

Even though you won’t be able to separate entirely your personal and business credit at the beginning, there are some things that you can do to reduce the damage.

  • Pay Bills on Time: This is the most obvious tip, but also the one with the most impact. Every time you’re late or miss a payment, the numbers on your credit score begin to shrink. In addition, it can severely damage your relationships with creditors and vendors.
  • Go Through the Right Card Company: If you let them, some card issuers will gouge you with high interest rates and unrealistic payment expectations. When it comes to business credit, you’ll want to look for a low interest creditor that offers a business-friendly payment program based on the cash flow that you receive each month. This can help you to keep up with your payments and to avoid interest.
  • Don’t Put Business Cards in your Name: This isn’t always possible, but when given the option, always put business cards in the name of the company. It might seem more convenient to link it to your personal name, but if your business can’t generate the cash flow to pay off your debt, you’ll be personally liable for the sum.
  • Protect Yourself: Be as informed as possible about the risks. You may also find it pertinent to hire a lawyer to help you to navigate the business credit paradigm. It’s best to have a trained professional at your side to help you to mitigate risk and to protect your personal assets in the event that


Jenna is a freelance journalist specializing in technology, digital communications, marketing, and entrepreneurship.

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