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Using A Personal Credit Card For Business Expenses – Good Or Bad Idea?

By Katrina Gutierrez on | More Posts By | Best Credit Cards

Can’t I Just Use My Personal Credit Card For Business Expenses?

According to the 2009 National Small Business Association survey, a whopping 86% of small businesses say they use their personal or business cards primarily or exclusively for business purposes.

There are several downsides of putting business expenses on your personal consumer credit card:

1. Accounting issues. Mixing personal and business expenditures on a consumer credit card can lead to accounting problems. If you put all your business spending on one card, you can probably deduct the interest and the fees for that card. But if you also put your personal purchases on the card, it will create more problems as your accountant will have a difficult time telling apart how much of the card’s balance is due to personal purchases and how much is due to business purchases.

For sole proprietorships, the commingling is fine. However, due to liability and taxation concerns, you may wish to eventually convert your sole proprietorship to limited liability company (LLC) or corporation, and these entities mandate the separation of your personal expenses from your business transactions.

Once you have that in mind, it makes much better sense to start off with a small business credit card now instead of later so that the transition will be smoother in the future.

2. Business debt will show up on your personal credit report. If you pay your bills timely and in full, small-business cards don’t usually appear on personal credit reports. But if your account is delinquent, the business debt will appear on your personal credit report.

Beware, there is an exception to this! Capital One-issued cards said that the bank recently started reporting small-business loan information to business and consumer credit bureaus. So even if you weren’t delinquent on your Capital One card, your business debt would be reflected in your personal credit report.

Also keep in mind that any surge in debt, whether business or personal, could lower your credit score.

On DailyMarkets.com, you can compare the different business credit cards to see what great benefits they offer to businesses and apply for the one that best suits you.

Compare & Apply For Business Credit Cards Below:



  • Get 5% cash back on wireless services and office supply purchases*
  • Get 3% cash back on automobile gasoline*
  • Get 1% cash back on other purchases*
  • No limit to the amount of cash back you can earn
  • Cash back on purchases is automatically credited to your statement each month
  • Save 3% to 10% automatically on business expenses from FedEx, Hertz®, OfficeMax®, and more with OPEN Savings®
  • No annual membership fee
  • Additional Rebates: Cardholders earn a 5% rebate on office supplies and wireless services, 3% on automobile gas purchases, and a 1% rebate on virtually all other purchases.
  • Rebate Details: Cash back on purchases is automatically credited to your statement each month.
  • Additional Perks: Save up to 10% automatically on business expenses from FedEx, Hertz, and more with OPEN Savings. Flexible payments that allow you to pay in full or over time. Protection when you shop and travel. Online expense management tools that can be customized to track charges and monitor exactly where, when, and how company dollars are spent. See website for additional benefits.
    • The SimplyCash® Business Card from American Express OPEN is designed for those with very good credit and who plan to take advantage of the cash back reward program with no additional fee. You'll earn a 5% rebate on office supplies and wireless services, a 3% rebate on automobile gas, and a 1% rebate on all other purchases. Rebates are automatically credited to your statement each month, and there is no limit to the amount of cash back that can be earned. The card has no annual fee, and it has a 0% introductory rate on purchases for 6, 9, or 12 months, plus you'll receive many benefits including travel accident insurance, purchase protection, and special discounts from select retailers. The SimplyCash® Business Card from American Express OPEN is ideal for small business owners that want to earn cash back on expenses and enjoy a low interest rate on card balances. Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
  • 0% introductory APR on purchases for 6 months, 9 months, or 12 months, based on your creditworthiness.
  • APR For Purchases: 12.24% – 19.24% Variable
  • APR For Cash Advances: 21.24%
  • Annual Fee: $0
  • Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater.
  • Late Payment Fee: Up to $35
Read Our Review Of SimplyCash® Business Card from American Express OPEN

  • FOR A LIMITED TIME: Earn 5X points on shipping and advertising for the first 3 months of Card membership.
  • Earn points even faster to get more rewards for your business
  • 3X points on airfare, 2X points on advertising, gas, and shipping, 1X points on everything else*
  • One million rewards from over 500 brands
  • 24/7 support for everything from identity theft to travel emergencies
  • $0 introductory annual fee for the first year, then $175
  • Get unlimited Additional Gold Cards for an additional annual fee of $50 - and this fee is waived for the first year
  • Terms & Restrictions Apply.
  • Additional Perks: 3X points on airfare, 2X points on advertising, gas, and shipping, 1 point on everything else. FOR A LIMITED TIME: Earn 5X points on shipping and advertising for the first 3 months of Card membership.
    • Earn points even faster to get more rewards for your business! Apply now for the Business Gold Rewards Card from American Express OPEN, and get a decision in 60 seconds!
  • N/A [You must pay your balance in full each month]
  • APR For Purchases: N/A [You must pay your balance in full each month]
  • Annual Fee: $0 introductory annual fee for the first year, then $175
Read Our Review Of The Business Gold Rewards Card(R) from American Express OPEN

  • Earn 2 miles per dollar on every purchase, every day
  • Get 10,000 bonus milesjust spend $1,000 within the first 3 months
  • Receive 5,000 bonus miles by signing up for one or more employee cards
  • Enjoy exclusive, award-winning customer service
  • $0 intro annual fee for the first year; $59 after that
  • There's no limit to the amount of miles you can earn and miles don't expire
  • Redeem miles for travel, cash back, gift cards, merchandise, and more
  • Fly on any airline, anytime, with no blackout dates or seat restrictions
  • Other Bonus: Earn 10,000 bonus miles for spending $1,000 or more in the first 3 months of card membership. Earn 5,000 bonus miles for adding additional user(s) to your account.
  • Additional Perks: Redeem miles for travel, cash back, gift cards, merchandise, and more. Fly on any airline, anytime, with no blackout dates or seat restrictions.
  • No introductory rate available.
  • APR For Purchases: 13.9% (V)
  • APR For Cash Advances: 24.9% (V)
  • Annual Fee: $59*
  • Cash Advance Fee: 3% of amount of the cash advance, but not less than $10
  • Balance Transfer Fee: There is no balance transfer fee.
  • Late Payment Fee: Balance of $0 - $99.99 = $15 fee; balance of $100 - $249.99 = $29 fee; balance of $250 or more = $39 fee
Read Our Review Of Capital One® Spark℠ Miles for Business

  • Earn 30,000 bonus miles toward Award Travel - when you spend $500 on the Card in the first three months from account opening
  • Check your first bag free- for up to 8 people on your reservation- on every Delta flight
  • Receive double miles on Delta purchases and 1 mile for all other eligible dollars spent
  • Priority Boarding and 20% In-Flight Savings
  • $0 intro annual fee for the first year, then $95
  • No annual fee for Additional Cards
  • Save 3% to 10% automatically on business expenses from FedEx, Hertz®, OfficeMax®, and more with OPEN Savings®
  • Bonus Details: 30,000 bonus miles when you spend $500 on the Card in the first three months from account opening– good for a free flight!
  • Other Bonus: 30,000 bonus miles when you spend $500 on the Card in the first three months
  • Additional Perks: Save up to 10% automatically on business expenses from FedEx, Hertz®, Hyatt Hotels & Resorts®, and more with OPEN Savings®. Insurance coverage that protects you and gives you added peace of mind when you travel. Online expense management tools that can be customized to track charges and monitor exactly where, when, and how company dollars are spent. See website for additional benefits.
    • The Gold Delta SkyMiles® Business Credit Card from American Express OPEN is designed for businesses with good credit that would like to earn free travel for business-related expenses and travel regularly on Delta Air Lines. You'll earn one mile for every dollar spent on general purchases and two miles for every dollar spent on qualifying Delta and Northwest flights, plus get 30,000 bonus miles when you spend $500 in the first three months. Cardholders will also have access to the exclusive Pay with Miles benefit that allows you to pay for a portion or all of your airfare with miles. Although there is a high annual fee of $95, it is waived for the first year. Earn additional miles for your everyday purchases with the Gold Delta SkyMiles® Business Credit Card from American Express OPEN.
  • No Introductory Rate Available
  • APR For Purchases: 15.24% - 19.24% Variable
  • APR For Cash Advances: 21.24%
  • Annual Fee: $95
  • Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater.
  • Late Payment Fee: Up to $35
Read Our Review Of Gold Delta SkyMiles® Business Credit Card from American Express OPEN

  • Earn up to 25,000 Starpoints® - Receive 10,000 Starpoints after your first purchase, and another 15,000 bonus Starpoints when you spend $5,000 in 6 months - enough for up to 6 free nights at a Category 1 or 2 hotel.
  • Redeem Starpoints at over 1,000 hotels and resorts in nearly 100 countries, and for flights on more than 350 airlines through SPG Flights. No blackout dates.
  • $0 introductory annual fee for the first year, then $65
  • Point Details: Redeem Starpoints for free nights and free flights.
  • Additional Points: Get at least 4 Starpoints for every eligible dollar you spend at hotels and resorts participating in the SPG program. Plus, one Starpoint for every eligible dollar spent everywhere else.
  • Bonus Details: UP TO 25K STARPOINTS: Get 10,000 Starpoints after your first purchase and an additional 15,000 bonus Starpoints when you spend $5,000 in 6 months
  • Other Bonus: 15,000 Startpoints
  • Additional Perks: Receive 10,000 Starpoints after your first purchase
    • The Starwood Preferred Guest® Business Credit Card from American Express OPEN is designed for business owners who frequently stay at Starwood hotels and resorts.
  • No Interest Rate Available
  • APR For Purchases: 15.24% - 19.24% Variable
  • APR For Cash Advances: 21.24% Variable
  • Annual Fee: $65*
  • Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater.
  • Late Payment Fee: Up to $35
Read Our Review Of Starwood Preferred Guest® Business Credit Card from American Express OPEN

  • The Everything, Everywhere Trade Terms Card(SM) from American Express OPEN
  • Pay in full within ten days, get a 1.5% discount
  • OR pay as little as 10% and take up to 2 months to pay off the balance, interest free
  • $0 introductory annual fee for the first year, then $185
  • A powerful cash flow management tool
  • Additional Perks: OPEN Savings® program: Automatic business discounts of 3% to 10% on partners, including FedEx, Hertz® and more. Tools to manage and monitor your spending. Business protection, personalized service and support. See website for additional benefits.
    • The Plum Card® from American Express OPEN is for business owners who would like to use an American Express charge card with added flexibility. This card carries a $185 annual fee which is waived for the first year. You can earn a 1.5% discount by paying your full balance within 10 days of your statement closing date. You can also take up to 2 months from your statement closing date to pay your new balance in full, without penalties or interest. Just make an initial payment of at least 10% of your balance. The Plum Card® from American Express OPEN will prove to be a convenient option for business owners with additional options for special savings.
  • No Introductory Rate Available
    • Annual Fee: $185
    • Late Payment Fee: 1.5% then 2.99% of the past due amount (minimum: $35)
    Read Our Review Of The Plum Card® from American Express OPEN

    • Designed for businesses with an established credit history
    • 0% Intro APR on Purchases for 6 months. After that, 14.24% variable*
    • Earn 5 ThankYou Points for every dollar spent on eligible AT&T products and services purchased directly from AT&T*
    • Earn 3 ThankYou Points for every dollar spent on purchases at certain office supply merchants, gas stations, and on professional services and 1 ThankYou point for every dollar spent on other purchases*
    • Additional cards for employees with credit limits you set
    • No Annual Fee*
    • Point Details: Points can be redeemed for air travel, statement credits, gift cards, merchandise, and more.
    • Additional Points: Cardholders will earn 5 ThankYou® Points points for every dollar spent on eligible AT&T products and services purchased directly from AT&T; 3 ThankYou® Points for every dollar spent at certain office supply merchants, gas stations, and professional services.
    • Additional Perks: Various online account services. Additional cards for employees with pre-set credit limits. Prescription Discount Benefit Program. See website for additional benefits.
    • The introductory rate is available on purchases only.
    • APR For Purchases: 14.24%
    • APR For Cash Advances: 25.24%
    • Annual Fee: $0
    • Cash Advance Fee: 3% of each cash advance; $5 minimum
    • Balance Transfer Fee: 3% of each balance transfer; $5 minimum
    • Over The Limit Fee: $39
    • Late Payment Fee: $15 on balances up to $100; $29 on balances of $100 up to $250; and $39 on balances of $250 and over.

    • FOR A LIMITED TIME: Earn 25,000 Membership Rewards® points by spending $5,000 in the first 3 months.
    • Enroll and select an airline to receive up to $200 annually in statement credits for incidental fees such as checked bags, in-flight refreshments, and change fees.*
    • 20% Travel Bonus when redeeming with Membership Rewards® Pay with Points
    • Take advantage of 40 premium benefits and rewards, including 24/7 concierge service and dedicated business consultants
    • Complimentary airport club access to 600+ partner lounges, a $950/yr value
    • By Invitation Only: Receive exclusive access to events, ideal for entertaining clients or treating staff, worldwide that aren't available to the general public
    • No pre-set spending limit*
      Enjoy the benefits of distinction. Apply for The Business Platinum Card(R) from American Express OPEN
    • N/A [You must pay your balance in full each month]
    • APR For Purchases: N/A [You must pay your balance in full each month]
    • Annual Fee: $450

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