Business vs. Personal Credit Cards

Is having only a business credit card for my husband and myself detrimental to our credit? We would use it for all expenses (personal). I am a sole proprietor. The rewards are far better on the business card than the personal one. Thanks!

 

Business credit cards can be good for personal credit as long as they are reported to the three major credit bureaus (Trans Union, Equifax, & Experian). Some creditors that extend business credit cards do not update them to personal credit unless the card holder defaults. If you do open a business account you should first check with the creditor to make sure the credit card will be reported to your personal credit profile. It would be a good idea to have some regular credit cards as well since having a variety of credit is good for credit scores. Just make sure to use all your accounts once a year to insure they stay open and active.Gonflables sur mesure

Additionally, one should always consult with both their legal counsel and accountant to ensure that business expenses and personal expenses are separated so that they do not run the risk of unforeseen consequences.

 

Filed Under: Credit