Please ensure Javascript is enabled for purposes of website accessibility

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

Skip to main content

Do Business Credit Cards Affect My Credit Score?

Updated
Brittney Myers
By: Brittney Myers

Our Credit Cards Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Business credit cards are a great way for small business owners to keep business expenses completely separate from their personal expenses. Though business credit cards can help demarcate your expenses, your credit history may not be quite so separate.

Until your company meets the criteria for a corporate credit card, your business credit cards is inextricably tied to your personal credit in one way or another. This starts from the very beginning, because every business credit card application includes a personal credit check.

So, do business credit cards affect my credit score? Yes, absolutely. But that's not the only question to ask. Do business credit cards affect my credit score after I'm approved? That answer is a lot more complicated. We'll break it down.

Business credit cards and the personal guarantee

Something key to realize about business credit cards is that you, as the primary cardholder, are responsible for the debt. This is called a "personal guarantee," and it's found in the terms and conditions of virtually every business credit card. Personal guarantees are required for sole proprietors and LLCs alike. The game can change at corporate level, but that's an entirely different credit product.

In other words, just because a credit card is in your business's name instead of your own doesn't mean you're off the hook for the balance -- or for the credit score damage if you're delinquent. The personal guarantee means tanking your business credit can also tank your personal credit score.

That said, the day-to-day impacts of business credit cards on your personal credit score vary.

Initially, the impact is minor. Because credit card issuers rely on your personal guarantee, they pull your credit report when you apply for business credit cards. This hard credit inquiry winds up on your personal credit report, likely dinging your credit score a few points.

After you're approved, the effect your business credit cards have on your personal credit depends on which company issued your card. Some credit card issuers report your business card's activity to the consumer credit bureaus every month, exactly as they would a personal account. Other issuers don't report your balances or payment history unless your account becomes delinquent.

Which issuers report business credit cards to consumer credit bureaus?

Although your business credit cards always have some impact on your personal credit score, you can minimize the everyday influence of your business cards. Here is a look at which issuers are known to regularly report business credit card activity to consumer credit bureaus:

American Express No
Bank of America No
Barclaycard Sometimes
Capital One Yes
Chase No
Citi No
Discover Yes
U.S. Bank No
Wells Fargo No

Of course, it's worth pointing out that this refers just to regular activity, like monthly balances. If your account becomes delinquent -- typically 30-plus days late -- any issuer is very likely to report your account as delinquent to both business and consumer credit agencies.

Just as with a personal card, a delinquent business card account has a profound and long-lasting negative impact on your personal credit score.

The potential credit score impacts from business credit cards

There are several factors determining your credit score that can be impacted by a business credit card, including:

  • Payment history
  • Credit utilization
  • Length of credit history
  • Credit mix
  • New credit

From the start, your business card influences your new credit factor thanks to the hard credit inquiry from the application. Your business credit cards reporting to your personal credit can have additional impacts, particularly in your account age. Scoring agencies look at the length of your overall credit history and the average age of all of your credit accounts. A new credit card, business or personal, decreases your average account age, thus decreasing your credit score.

Credit utilization

Credit utilization can be especially impacted by a business credit card.

Basically, credit scoring agencies look at how much credit you are using as a function of how much credit you have available, and this ratio is known as your utilization rate. If your issuer reports your business card balances to the consumer bureaus, the purchases you make for your company could increase your personal utilization rate.

A high utilization rate can decrease your credit score, so your personal credit can suffer if you frequently make large purchases with your business credit cards. However, paying down your balance will help improve your credit score again. And if you rarely make large purchases, a business card added to your personal credit report could actually be good for your credit score.

Don't be afraid of impacting your personal credit score

Even the smallest of small businesses need access to credit. Though there can be a number of credit score impacts from business credit cards showing up on your personal credit report, most are minor -- so long as you're using your business cards responsibly.

Below, we've listed three of our top-rated business credit cards. To see more, check out our full list of the Best Business Credit Cards.

As of Nov. 27, 2023
Image for
Image for
Image for
Ink Business Unlimited® Credit Card

American Express Business Gold Card

Capital One Spark 1% Classic Card

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.25 out of 5 stars.
4.25/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.75 out of 5 stars.
3.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Credit Rating Requirement: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good/Excellent (670-850)

Good/Excellent (670-850)

Credit Rating Requirement: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good/Excellent (670-850)

Good/Excellent (670-850)

Credit Rating Requirement: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)

Fair/New to Credit Under(669)

Welcome Offer: Circle with letter I in it. Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.

Earn $750 bonus cash back

Welcome Offer: Circle with letter I in it. 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership

70,000 Membership Rewards® points

Welcome Offer:

N/A

Rewards Program: Circle with letter I in it. Earn unlimited 1.5% cash back on every purchase made for your business

Earn unlimited 1.5% cash back on every purchase

Rewards Program: Circle with letter I in it. 4 points per $1 in two of the following categories where you spend most: gas, dining, advertising, transit, electronics & wireless ($150,000 annual spending cap). 3 points per $1 on flights and prepaid hotels booked on AmexTravel.com. 1 point per $1 on other purchases

1x - 4x points

Rewards Program:

1% cash back

Intro APR: Circle with letter I in it. 0% Intro APR on Purchases

Purchases: 0% Intro APR on Purchases, 12 months

Balance Transfers: N/A

Intro APR:

Purchases: N/A

Balance Transfers: N/A

Intro APR:

Purchases: N/A

Balance Transfers: N/A

Regular APR:

18.49% - 24.49% Variable

Regular APR:

19.49%-27.49%, variable

Regular APR:

30.74%, variable

Annual Fee: Circle with letter I in it. N/A

$0

Annual Fee:

$295

Annual Fee:

$0

Highlights:

  • Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase made for your business
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
  • Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
  • Round-the-clock monitoring for unusual credit card purchases
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
  • 0% introductory APR for 12 months on purchases
  • Member FDIC

Highlights:

  • Welcome Offer: Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.
  • MORE REWARDS: Get 4X Membership Rewards® points on the 2 select categories where your business spent the most each month. Earn 3X points on flights & pre-paid hotels booked on AmexTravel.com. 1X is earned for other purchases.
  • 4X points apply to the first $150,000 in combined purchases from these 2 categories each calendar year.
  • AIRLINE BONUS: Get 25% points back after you use points for all or part of an eligible flight booked with Amex Travel, up to 250,000 points back per calendar year.*
  • Terms Apply

Highlights:

  • Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions. Plus, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
  • No annual fee
  • Build and strengthen credit for your business by using this credit card responsibly
  • $0 Fraud Liability if your card is lost or stolen
  • Free employee cards, which also earn unlimited 1% cash back on purchases
  • Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
  • No foreign transaction fees
Show More Arrow graphic to expand and collapse content Show Less Arrow graphic to expand and collapse content

The information for the American Express Business Gold Card has been collected independently by The Ascent. The card details on this page have not been reviewed or provided by the card issuer.

Our Credit Cards Expert