Should You Use Your Personal Credit Card For Business Expenses?

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Every business owner knows that there are a lot of aspects of running a company that can become hectic. For example, bookkeeping can become a demanding task because keeping track of expenses can be a serious chore. One way to ease this stress is to use a credit card to conduct company transactions, as month-end statements make it much easier to track expenditure. 

Business credit cards are offered by a lot of companies in the market. However, business owners often avoid opening a card, thinking that it may compromise the benefits offered on personal credit cards. 

Therefore, should entrepreneurs use their personal cards, or should they move to business credit cards to make purchases for their company?  Exit Advisor

Using Personal Credit Cards for Business Purchases 

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 which 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, including the ability to purchase office supplies at a discounted rate. However, it might still not be enough to entice owners to begin using a business credit card. 

Complete research to determine what benefits suit your business and choose a credit card based upon those benefits, be it a personal or business card. 

Do Not Dismiss Business Credit Cards  ADP. Payroll – HR – Benefits

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

A typical example is a business handing out credit cards to its employees. This need is facilitated by most credit card providers who supply multiple cards associated with a single account. Personal credit cards, on the other hand, are for individuals and 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 that have many monthly expenses that they need to put on their card. 

Suggestions for Success 

It is recommended that you examine the nature of your business expenses. Once you have assessed the needs of your business, you will be able to conclude which card (business or personal) is a better choice to be used in the operations of your company. Once you get the card you want to use for business, keep the following suggestions in mind:  Download A Free Financial Toolkit

  • Do not 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 expenditures. This is the main reason businesses opt for credit cards. It is recommended that you do not ignore this suggestion. 
  • Build healthy credit habits. These include paying the credit card bills when they are due and 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 maintain a good credit score and avoid high-interest payments. 


It is always an option to use a credit card to keep track of business expenses. When choosing a card, you will use it to help monitor 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.  

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