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Do the Credit Cards for your Business Report to your Personal Credit Reports?

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Do the Credit Cards for your Business Report to your Personal Credit Reports?

By Marco Carbajo, Guest Blogger
Published: June 19, 2012

Due to the growing difficulty in obtaining traditional business lines of credit from banks, many business owners are turning to credit cards for small businesses as their primary unsecured business lines of credit.

Unfortunately, the majority is turning to the wrong sources. They end up putting their personal credit on the line and all their business credit card debts show up on their personal credit reports.

This means that anytime you use your business credit cards, your personal debt/credit ratios are affected. Did you know that drawing a large portion of funds from these types of business credit cards can result in your personal credit scores dropping anywhere from 20-100 points overnight?

Some of the largest financial institutions offering business credit cards report to your personal credit. This negatively impacts your scores.

Do your current business credit cards report to your personal credit reports?

If so, you should consider obtaining several true business credit cards that do not report. This will shelter your personal credit for personal necessities such as auto loans, mortgages, student loans and personal credit cards.

Unsecured credit lines such as business credit cards have been around for a long time. They are no secret to the wealthy and savvy business owners. When properly structured, they do not report to your personal credit reports. They can be excellent cash flow tools, as the monthly debt service is usually lower than almost any other form of financing. The rates are usually very good, too–usually between 3-7% above prime.

So where can you find business credit cards that do not report to personal credit?

Well, the good news is there are credit cards that only report to the business credit bureaus. The bad news is the credit card issuers for these types of cards do not advertise this fact.

First, while there are hundreds of credit cards for small businesses available in the marketplace, only a handful of major companies issue and service all these consumer and business credit cards.

So when you see a financial institution launch a new credit card program with its own branded label, in most cases it always includes a partnership with a leading agent credit card issuer to provide and service the actual credit card products to its customers.   

The agent credit card issuer is the company that actually underwrites, issues and services the credit card customer. As you may know, part of account servicing includes credit reporting.

You have two options if you want to locate these types of credit cards for your business. First, you can utilize a business credit service because they know firsthand which lenders are lending, which ones report to only the business credit bureaus, and whether you and your business will be a good fit for them.

Your second option is to do it on your own. But, you will need to know which lenders offer unsecured business credit without full income documentation. In addition, you will need to find out which ones do not report to your personal credit reports.

Finally, you should be aware of which credit bureaus are pulled by each lender so you can properly plan the series of applications. These are just a few of the questions to address prior to doing it on your own.


About the author

Marco Carbajo is CEO of the Business Credit Insiders Circle (, a step-by-step business credit building system providing credit recovery, lines of credit, business credit cards, trade credit, and funding sources.

About the Author:

Marco Carbajo
Marco Carbajo

Guest Blogger

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the Community, and All His articles and blog; Business Credit, have been featured in 'Fox Small Business','American Express Small Business', 'Business Week', 'The Washington Post', 'The New York Times', 'The San Francisco Tribune',‘Alltop’, and ‘Entrepreneur Connect’.


The vast majority of business credit cards DON'T report to personal credit--Capital One is the only exception I've found. If you're wondering why the author doesn't list the cards, it's because he wants you to buy his product to find out.
Great article. Most people don't know about business credit. Firms like ours can help folks get unsecured True Business Credit. Yes it exists, you just need guidance to get it done. The worst thing to happen is for a business owner to get their personal credit put on a choke hold because of the business's daily credit needs.
Would love a clearer photo of the author, he looks like a nice guy but it's kind of blurry.
The problem with keeping your business and personal credit separate, especially when you are a smaller business, is that most banks won't deal with you if you don't allow them to tap into your personal credit file. So most of the time this is easier said than done.
I seem to keep stumbling upon your posts lol. Each of them have been a good read though so I guess that's a good thing :D Figuring out which lenders report to your personal credit and which ones don't take a lot of research and even more time.
Very informative article. Good advice!
I think the key is the most business owners don't have any credit built with their business TIN so they are forced to sign personally for any credit that they do get. So basically we end up applying for "business" credit cards and use our own SSN to be able to qualify.
Thanks Marco. I didn't think there would be companies that dont report your business credit to your personal credit history.
I think you made the best point in the first sentence... the reason why business owners like myself are turning to our personal credit cards is because business credit is tightening up and is not as easy to get as it once was. I am sure that most business owners would get an unsecured card for their business if they could be approved for a large enough limit to make it worth while. I know you have to work on building business credit like you do with personal credit but it seems a lot of time its not worth the hassle to get a $1,000 business credit card when you can just use your personal credit card that may have a limit of 10k or more. Are there any sites where business owners can go to review the unsecured cards for business credit? Thanks, Joey The Jack Hammer
Thanks for the article. But I have discovered that even if you find a major business credit card provider which requires you to be incorporated along with having an EIN, some still require you to provide a personal guarantee by using your personal credit history.


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