{"id":78389,"date":"2024-02-25T19:00:44","date_gmt":"2024-02-25T19:00:44","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/02\/25\/do-business-credit-cards-impact-my-credit-score-the-points-guy\/"},"modified":"2024-02-25T19:00:44","modified_gmt":"2024-02-25T19:00:44","slug":"do-business-credit-cards-impact-my-credit-score-the-points-guy","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/02\/25\/do-business-credit-cards-impact-my-credit-score-the-points-guy\/","title":{"rendered":"Do business credit cards impact my credit score? &#8211; The Points Guy"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>One good reason business owners should consider opening a <a href=\"https:\/\/thepointsguy.com\/credit-cards\/business\/\" target=\"_blank\" rel=\"noopener\">small-business credit card<\/a> is to keep that credit line off their personal credit file. But while some issuers only <a href=\"https:\/\/thepointsguy.com\/guide\/how-to-build-business-credit\/\" rel=\"noopener noreferrer\" target=\"_blank\">report business card activity to business credit bureaus<\/a>, the practice is not universal. That could mean your issuer is reporting your good \u2014 or bad \u2014 actions to consumer credit bureaus, just like with your personal credit cards.<\/p>\n<p>Although opening a business credit card can help you <a href=\"https:\/\/thepointsguy.com\/guide\/5-signs-time-to-get-business-card\/\" rel=\"noopener noreferrer\" target=\"_blank\">separate your business expenses from your personal ones<\/a>, if the issuer reports your card activity to a consumer bureau, it could affect personal credit \u2014 even if you pay your bills on time and in full every month.<\/p>\n<p><a id=\"how-do-business-credit-cards-affect-personal-credit\" class=\"jsx-3480274316 anchor\"\/><\/p>\n<h2 class=\"jsx-3480274316\">How do business credit cards affect personal credit?<\/h2>\n<p>If your business card activity appears on your personal credit report, it will have the same impact as the <a href=\"https:\/\/thepointsguy.com\/news\/debunking-credit-myths-having-many-cards-hurt-credit-score-2\/\" rel=\"noopener\" target=\"_blank\">rest of your credit cards<\/a>.<\/p>\n<p>For issuers that report business card activity to personal reports, there&#8217;s one major exception to this rule: If you have employees with <a href=\"https:\/\/thepointsguy.com\/2017\/03\/au-gold-cards-business-platinum\/\" rel=\"noopener noreferrer\" target=\"_blank\">access to your business credit card as authorized users<\/a>, it should appear only on your credit report.<\/p>\n<p>If you stop paying your credit card bill, you will be held responsible for what&#8217;s owed. American Express and Chase require both joint and several liability, meaning that both you and your business are liable for repayment and thus reporting your card activity to one or more business credit bureaus.<\/p>\n<figure class=\"jsx-4252866712 tpg-figure\">\n<div style=\"padding-top:0\" class=\"jsx-36530878 full-width-auto-height-image\"><span style=\"box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative\"><span style=\"box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:66.66666666666666%\"\/><noscript><img alt=\"\" loading=\"lazy\" decoding=\"async\" data-nimg=\"responsive\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%\" sizes=\"100vw\" srcset=\"https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=640 640w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=750 750w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=828 828w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=1080 1080w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=1200 1200w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=1920 1920w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=2048 2048w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=3840 3840w\" src=\"https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/08\/IMG-SmallBusinessPersonal.jpg?width=3840\"\/><\/noscript><\/span><\/div><figcaption class=\"jsx-4252866712 figcaption\">HERO IMAGES\/GETTY IMAGES<\/figcaption><\/figure>\n<p>Business credit bureaus \u2014 including Dun &amp; Bradstreet, Equifax and Experian \u2014 look for trends in business credit card activity similar to that of consumer bureaus.<\/p>\n<p>Experian says payment history is the top factor to pay attention to when looking to improve your business score, in addition to money owed, business establishment history, and negative marks on your credit.<\/p>\n<p>About two-thirds of <a href=\"https:\/\/thepointsguy.com\/guide\/how-credit-scores-work\/\" rel=\"noopener\" target=\"_blank\">your credit score<\/a> is determined by your payment history and what you owe. Stay in control by always paying your bill on time and paying your bill in full. Despite this, the issuer may report your account status to the credit bureaus before your monthly payment clears, meaning your <a href=\"https:\/\/thepointsguy.com\/guide\/credit-utilization-ratio-guide\/\" rel=\"noopener\" target=\"_blank\">credit utilization ratio<\/a> may be reported to be higher, affecting your creditworthiness<\/p>\n<p><strong>Related: <a href=\"https:\/\/thepointsguy.com\/credit-cards\/how-to-improve-credit-score\/\" rel=\"noopener\" target=\"_blank\">6 things to do to improve your credit score<\/a><\/strong><\/p>\n<div class=\"&#10;        EmailSignUp_container__qYzYT&#10;        undefined&#10;        EmailSignUp_isLoading__i_qm0&#10;      \"><picture class=\"EmailSignUp_graphic__zgpFm\"><source media=\"screen and (max-width: 767px)\" srcset=\"\/images\/EmailSignUp\/daily-mob.svg\"\/><img decoding=\"async\" alt=\"\" src=\"https:\/\/thepointsguy.com\/images\/EmailSignUp\/daily-dt.svg\"\/><\/picture>\n<div class=\"EmailSignUp_form__C8FWb\">\n<p>Daily Newsletter<\/p>\n<p>Reward your inbox with the TPG Daily newsletter<\/p>\n<p>Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG\u2019s experts<\/p>\n<\/div>\n<\/div>\n<p><a id=\"business-credit-card-credit-reporting-by-issuers\" class=\"jsx-3480274316 anchor\"\/><\/p>\n<h2 class=\"jsx-3480274316\">Business credit card credit reporting by issuers<\/h2>\n<p>We contacted more than a half-dozen issuers to ask about their reporting policies on their small-business credit card lines. Some issuers were more forthcoming than others, but they all indicated they make a hard inquiry (or at least reserve the right to) on your personal credit report during the application process.<\/p>\n<p>A <a href=\"https:\/\/thepointsguy.com\/credit-cards\/hard-pull-vs-soft-pull-credit-report\/\" rel=\"noopener\" target=\"_blank\">hard pull<\/a> can cause a small, temporary drop in your credit score, but reporting regular activity can have more lasting implications, especially if your business runs up big monthly credit card bills.<\/p>\n<div class=\"jsx-3709662331 tpg-table \">\n<div tabindex=\"0\" class=\"jsx-3709662331\">\n<table class=\"jsx-3709662331\">\n<thead class=\"jsx-3709662331\">\n<tr class=\"jsx-3709662331\">\n<th class=\"jsx-3709662331\"><strong>Issuer<\/strong><\/th>\n<th class=\"jsx-3709662331\"><strong>Credit check with consumer credit bureaus during the application process?<\/strong><\/th>\n<th class=\"jsx-3709662331\"><strong>Credit check with business credit bureaus during the application process?<\/strong><\/th>\n<th class=\"jsx-3709662331\"><strong>Reports card activity to consumer credit bureaus?<\/strong><\/th>\n<th class=\"jsx-3709662331\"><strong>Reports card activity to business credit bureaus?<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"jsx-3709662331\">\n<tr class=\"jsx-3709662331\">\n<td>American Express<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>Yes, in the event of a default<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Bank of America<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Barclays<\/td>\n<td>Yes<\/td>\n<td>N\/A<\/td>\n<td>Mixed reports<\/td>\n<td>N\/A<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Brex<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Capital One<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>Declined to answer, but reports indicate yes<\/td>\n<td>Declined to answer<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Chase<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>&#8220;Business Card Customers may be reported to Consumer Credit Bureaus per bank policy&#8221;<\/td>\n<td>Accounts &#8220;are reported to the commercial credit bureau&#8221;<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Citi<\/td>\n<td>Yes<\/td>\n<td>N\/A<\/td>\n<td>No<\/td>\n<td>N\/A<\/td>\n<\/tr>\n<tr class=\"jsx-3709662331\">\n<td>Wells Fargo<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<td>No<\/td>\n<td>Yes, Wells Fargo reports to the Small Business Financial Exchange<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p><a id=\"what-types-of-business-credit-card-activity-is-reported-to-the-credit-bureaus\" class=\"jsx-3480274316 anchor\"\/><\/p>\n<h2 class=\"jsx-3480274316\">What types of business credit card activity is reported to the credit bureaus?<\/h2>\n<p>Some issuers are less clear about the circumstances under which they&#8217;ll report business card activity to personal bureaus, but we can determine their usual practices based on reader reports and other sources.<\/p>\n<p><a href=\"https:\/\/thepointsguy.com\/credit-cards\/capital-one\/\" target=\"_blank\" rel=\"noopener\">Capital One<\/a> declined to say whether it reports any activity to either consumer or commercial bureaus, but <a href=\"https:\/\/www.nerdwallet.com\/blog\/credit-cards\/qa-business-credit-cards-affect-personal-credit-score\/\" rel=\"noopener noreferrer\" target=\"_blank\">has previously acknowledged<\/a> it reports to both types of bureaus, with <a href=\"https:\/\/www.flyertalk.com\/forum\/27715838-post2.html\" rel=\"noopener noreferrer\" target=\"_blank\">cardholders saying<\/a> they&#8217;ve seen Capital One business cards on their personal credit reports.<\/p>\n<figure class=\"jsx-4252866712 tpg-figure\">\n<div style=\"padding-top:0\" class=\"jsx-36530878 full-width-auto-height-image\"><span style=\"box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative\"><span style=\"box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:66.67188233453294%\"\/><img alt=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" decoding=\"async\" data-nimg=\"responsive\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%\"\/><noscript><img alt=\"\" loading=\"lazy\" decoding=\"async\" data-nimg=\"responsive\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%\" sizes=\"100vw\" srcset=\"https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=640 640w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=750 750w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=828 828w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=1080 1080w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=1200 1200w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=1920 1920w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=2048 2048w, https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=3840 3840w\" src=\"https:\/\/thepointsguy.global.ssl.fastly.net\/us\/originals\/2018\/06\/IMG-SmallBusinessRules.jpg?width=3840\"\/><\/noscript><\/span><\/div><figcaption class=\"jsx-4252866712 figcaption\">HERO IMAGES\/GETTY<\/figcaption><\/figure>\n<p><a href=\"https:\/\/thepointsguy.com\/credit-cards\/american-express\/\" target=\"_blank\" rel=\"noopener\">American Express<\/a> explicitly states business card account information &#8220;is reported to both the consumer and commercial bureaus,&#8221; while <a href=\"https:\/\/thepointsguy.com\/credit-cards\/chase\/\" target=\"_blank\" rel=\"noopener\">Chase<\/a> states it may report business cards, but reader reports state it isn&#8217;t routine and occurs with a negative trigger on a business account.<\/p>\n<p>Barclays says it reserves the &#8220;right to obtain a current consumer and business credit report&#8221; and the &#8220;right to report to others&#8221;, with cardholders giving mixed reports on their practices. Readers report that most <a href=\"https:\/\/thepointsguy.com\/credit-cards\/citi\/\" target=\"_blank\" rel=\"noopener\">Citi<\/a> business cards are not reported on personal credit reports.<\/p>\n<p><strong>Related: <a href=\"https:\/\/thepointsguy.com\/credit-cards\/american-express\/reasons-to-get-business-credit-card\/\" rel=\"noopener\" target=\"_blank\">8 reasons to get a business credit card<\/a><\/strong><\/p>\n<p><a id=\"bottom-line\" class=\"jsx-3480274316 anchor\"\/><\/p>\n<h2 class=\"jsx-3480274316\">Bottom line<\/h2>\n<p>It&#8217;s not the end of the world if your business credit cards end up affecting your personal credit report \u2014 just make sure you&#8217;re a responsible cardholder. Pay special attention to following these rules to keep your credit score from being negatively affected:<\/p>\n<ul>\n<li>Pay your card bills on time every time<\/li>\n<li>Try to stay well below your credit limit<\/li>\n<\/ul>\n<p>If you find yourself consistently bumping up against that limit, ask your issuer for a higher limit or switch to a card that offers <a href=\"https:\/\/thepointsguy.com\/guide\/credit-vs-charge-cards\/\" rel=\"noopener noreferrer\" target=\"_blank\">no preset spending limit<\/a>. Since charge cards have no preset limit, activity won&#8217;t impact your utilization ratio.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/thepointsguy.com\/guide\/business-credit-cards-that-affect-personal-credit\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One good reason business owners should consider opening a small-business credit card is to keep that credit line off their personal credit file. But while some issuers only report business card activity to business credit bureaus, the practice is not universal. That could mean your issuer is reporting your good \u2014 or bad \u2014 actions [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":78390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":{"0":"post-78389","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-travel"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/78389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=78389"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/78389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/78390"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=78389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=78389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=78389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}