Quick Answer
Business credit cards extend credit to a business entity but typically require a personal guarantee from an owner - meaning the owner remains personally liable even though the account belongs to the business.
Key Takeaways
- Most business cards require a personal guarantee.
- Some issuers report only to business bureaus; others report to both.
- Business cards often offer higher limits and category-specific rewards.
Reporting Behavior
The most common educational reference is that some issuers report business card activity only to business bureaus - protecting the owner's personal utilization - while others report to both.
Frequently Asked Questions
Can a sole proprietor get a business credit card?
Sole proprietors can typically apply using their SSN and business name. The card is still treated as business credit even without a formal entity.