Should You Use Your Personal Credit Card For A Business Expense?

Personal Credit Card - Complete Controller

Every business owner knows that there are many aspects of running a company that can get hectic. For example, bookkeeping can become a demanding task. Another serious chore in running a business is keeping track of expenses, so many choose to use a credit card to conduct company transactions. Month-end statements make it much easier to track expenditure.

Business-oriented credit cards are offered by a lot of companies in the market. However, business owners often avoid going for such a card, thinking that it may compromise many benefits offered on personal use cards.

Therefore, should entrepreneurs stick to using their cards, or should they move to business credit cards to make purchases for their company? Check out America's Best Bookkeepers

Using Personal Credit Cards for Business Purchases

Yes, indeed, it is possible to use a personal credit card for business transactions, and it even has some benefits. One of the most important reasons for using a personal card is the CARD act of 2009. The act prevents credit card providers from charging high fees and increasing interest rates than personal cards are subject to. Business credit cards do not enjoy these protections. The second reason relates to the rewards and benefits offered for using a personal credit card. There is almost always an incentive program to encourage the use of personal cards.

Business cards, on the other hand, do not offer as many benefits as personal cards. There might be some offers intended to attract businesses, such as purchasing office supplies at a discounted rate. However, it might still not be a lot.

It would be best if you did some research to check and see what benefits suit your business and choose a credit card based upon those benefits, be it a personal or business card. Check out America's Best Bookkeepers

Don’t Count Out Business Credit Cards

Although the prospects of choosing a personal credit card sound desirable, you should not dismiss the possibility of getting a business card. There are certainly a lot of advantages associated with getting a business card. The additional services offered with a lot of business cards might be just what your company needs.

A common example is a business handing out credit cards to its employees. This need is facilitated by most credit card providers who provide multiple cards that are associated with a single account. On the other hand, personal credit cards are for individuals and therefore do not offer these services.

Another advantage associated with business cards is spending more than one could on personal credit cards. This is useful, especially for companies with many monthly expenses that they need to put on their card. Check out America's Best Bookkeepers

Suggestions for success

Now that you know both sides of the story, it is recommended that you take a close look at the structure of your business’ expenses. Once you’ve assessed your business’s needs, you will be able to conclude which card (business or personal) is a better choice for being used in your company’s operations. Once you do get the card you want to use for business, keep the following suggestions in mind:

  • Don’t mix business and personal cards, as it can lead to extremely messy bookkeeping.
  • Use the tools provided by your credit card company to keep track of your business’s expenditure. This is the main reason businesses go for credit cards. It is recommended that you don’t ignore this suggestion.
  • Build healthy credit habits. These include paying the credit card bills when they are due and also paying them in full. Remember that you are using a credit card to keep track of your expenses and that it should be your priority to avoid interest payments, keeping a good credit score.


It is always a desirable option to use a credit card to keep track of business expenses. When choosing a card, you will use it in your business’ operations. It is always a wise decision to look around for what is offered and at what price. It is also necessary to have healthy credit habits to make full use of the card without incurring unnecessary liabilities.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers