{"id":20715,"date":"2024-08-05T08:03:00","date_gmt":"2024-08-05T14:03:00","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=20715"},"modified":"2025-06-05T15:36:05","modified_gmt":"2025-06-05T21:36:05","slug":"do-business-credit-cards-affect-personal-credit-score","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/do-business-credit-cards-affect-personal-credit-score.html","title":{"rendered":"Does a business credit card affect your personal credit score?"},"content":{"rendered":"\n
\"Female<\/figure>\n\n\n\n

Business credit cards may affect your personal credit score, depending on the card. Most card issuers will only report to the consumer credit bureaus if your account becomes delinquent.<\/p>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

Many business owners turn to business credit cards as a way to separate their personal and business finances. Your credit score is important, so you may be wondering, \u201cDoes my business credit card affect my personal credit score?\u201d <\/p>\n\n\n\n

While there are many benefits to business credit cards, it\u2019s helpful to understand how they work. Here, we teach you about how business credit cards can affect your personal credit score and report and if a business credit card is right for you.<\/p>\n\n\n\n

What are business credit cards for?<\/strong><\/h2>\n\n\n\n

Business credit cards are one of the more convenient ways for a business to access additional funds. Taking a loan out for a business involves a much longer process than simply applying for a business credit card, which may be approved within a few minutes.<\/p>\n\n\n\n

With a business credit card, businesses can cover operating expenses and purchase items they need for their offices. Many businesses use these cards for fuel, travel expenses like flights and hotels as well as meals.<\/p>\n\n\n\n

These cards also make it easier to track business expenses. By looking at the credit card statement, you can see what\u2019s spent and when. Some of these cards also have built-in reporting tools for even more convenience.<\/p>\n\n\n\n

Some of these cards also offer company-specific rewards, so businesses can save on travel and other categories.<\/p>\n\n\n\n

What effect does a business credit card have on your personal credit?<\/strong><\/h2>\n\n\n\n

Typically, financial institutions look to credit reports as a way to assess credit risk. Although your business credit card isn\u2019t for personal use, the bank needs to run a hard inquiry<\/a>, which will show on your personal credit report.<\/p>\n\n\n\n

Hard inquiries cause a temporary drop in your credit score, but as long as you\u2019re practicing good credit habits like making your payments on time and keeping your utilization low, it should recover in time. Once you start using the business credit card, it\u2019s reported to commercial credit bureaus. The main three commercial credit bureaus<\/a> include:<\/p>\n\n\n\n