Which Business Credit Cards Do Not Report to Personal Credit?

Plummeting credit score because your business card is reported to personal credit can harm your prospects. I, too, was stunned when my score took an unexpected hit. I had missed a few payments, and my business and personal finances got mixed up.

Then, I dug deeper and found out which business cards do not report to personal credit. I have compiled my results here for you to read and make a better decision.

Which Business Credit Cards Do Not Report to Personal Credit?

Many business credit cards do not report personal credit. Chase, Bank of America, and Citi Bank are some examples. However, although most issuers do not report all business activity on personal credit, they tend to report negative payment behavior.

You should keep your business and personal expenses separate to maintain a healthy personal credit score. That said, your credit score can plummet temporarily when you apply for a business card. Credit bureaus always do a hard check before issuing cards to big or small businesses. You can stabilize it quickly if you practice positive financial behavior.

Remember that your credit score won’t increase your business’ credit score. However, it can affect your business card limit. Some issuers may look at your own score to determine your credit worthiness.

Chase Ink Business Cards

Chase offers four business cards under the Ink Business umbrella. All four cards offer lucrative welcome bonuses and report only negative business finances to personal credit.

Chase Ink Business Cash® Credit Card

Ink Business Cash® Credit Card is a good fit for small businesses, mainly because of its reward categories.

• You earn 5% cash back on spending on office supplies like stationery.
• You earn 5% cash back on spending on cable, internet, and phone services.
• You must spend up to $25,000 for office supplies and telecom services combined to receive maximum cash back.
• It is a cheaper option because you have to pay zero annual fee.
• You can pay off a large purchase with this card. It offers a 0% APR for the first 12 months.
• You get a handsome welcome bonus to kickstart your business credit. You get $350 back for spending $3,000 in the first three months.

Chase Ink Business Unlimited® 

You should get Ink Business Unlimited® if you want to focus more on your business than your card’s rewards.

• It is inexpensive in the long run because of its $0 annual fee.
• You get a 1.5% flat rate cash back on all categories. It is the most convenient, no-frills card in the Ink Business category.
• There is no cap on cash back percentage. You can earn as much as you can.
• All Ink Business cards offer the same generous welcome bonus. You get $900 back if you spend $6,000 in the first three months of being a card member.
• You get a long 0% APR. You don’t accrue interest in the first twelve months. It is the best arrangement to make some large purchases or clear off outstanding debts.

Chase Ink Business Preferred

Ink Business Preferred is the perfect fit for those who travel frequently for business. 

• You get 3 points per dollar if you spend $150,000 on travel and business categories in one year. After this amount, you earn 1 point per dollar. Moreover, this offer is repeated every year.
• You get maximum benefit if you redeem credit card reward programs points towards travel. You have to redeem them through Chase Ultimate Rewards to get 25% more points.
• You get a massive welcome bonus for this card. You get 120,000 points back on spending $8,000 on business-related purchases within the first three months. That’s $1,200 cash back or $1,500 toward travel when redeemed through Chase Travel℠.
• This Chase credit card offers you purchase protection for 120 days. You can get up to $10,000 per claim.
• You get car rental insurance on chase credit card and trip cancellation insurance with this card, too. 
• Although you have to pay a $95 annual fee, you can offset this amount if you plan to maximize your card’s benefits.

Chase Ink Business Premier®

Ink Business Premier® is great for large businesses that require large purchases.

• You get a 5% cash back for travel booked through the Chase travel portal. You can earn significantly if you have to travel for business regularly.
• You get a 2.5% cash back on purchases of more than $5,000. It enables you to purchase heavy equipment and bulk products while adding to your reward pool.
• All the other purchases earn a 2% cashback. It is a generous offer unique to this card from all Ink business cards.
• You get an exceptional welcome bonus of $1,000 on spending $10,000 within the first three months. This amount can motivate you to keep maximizing this card’s benefits.
• Although you have to pay a $195 annual fee, it can be offset easily. That is if you capitalize your card to the fullest extent on rewards categories. 

US Bank Triple Cash Rewards World Elite Mastercard

This card is for you if you own a small to moderate business that requires you to travel moderately. US Bank does not report any business activity to personal credit.

• You get a 5% cash return on booking hotels and flights. You have to book through the Travel Rewards Center to avail of this offer. 
• You earn a 3% back on gas stations and EV charging stations. You can earn a decent amount even traveling through the city.
• A 3% return on office supply stores can increase your earnings and grow your business.
• You get the best cell phone protection with US Bank Triple Cash Rewards World Elite Mastercard. Also, you get a 3% cash back on cell phone service providers.
• You can arrange your business meetings in restaurants for a posh-professional look. You can earn a 3% return while you do it.
• You get a solid welcome bonus that can boost your small business. You get $500 for spending $4,500 in the first four months of becoming a cardmember. 
• You have to pay 0% APR for the first 15 months, which is ideal to pay off debts or buy expensive items.
• You get statement credit, too! You get a $100 annual statement credit if you subscribe to business-related software. If you get QuickBooks for accounting, for example, you will be eligible for this credit.

Citi Business/ AAdvantage Platinum Select Mastercard

This card does not report any business activity to personal credit. It is best for you if you are an American Airlines loyalist and a regular flyer.

• You get 2x AAdvantage miles for every dollar you spend on purchasing flights with American Airlines. This way, you can get 644 miles for a $322 round trip. Your reward mileage can increase quickly if you fly often.
• You get 2 miles for every dollar you spend on gas stations. Keep in mind that this offer is valid for standalone gas stations only. You can not earn miles from a gas station in a club or an eatery.
• You get double miles per dollar in restaurants. You can earn while you eat this way. You can even book get-togethers and company meet-and-greets at restaurants and earn travel mileage.
• You get a $125 discount on American Airlines flights after you spend $20,000 in any category within one year. Remember that you only get this discount after you renew your CitiBusiness/ AAdvantage Platinum Select Mastercard for the following year.
• This card could be a gold mine for you if you typically check bags for your flights. This card offers to get your first bag checked for free. Additionally, you can get your four companions’ first bags for free, too. However, this offer extends up to four companions.

Bank of America Business Advantage Customized Cash Rewards

This card reports payment delinquencies to personal credit. Bank of America Business Advantage Customized Cash Rewards is a good fit if you own a small business and do not have regular significant expenses.

• You earn $300 for spending $3,000 on purchases within the first three months. It is a lucrative offer, considering that it is an achievable target for small businesses.
• You get a 3% cash back on business-related bonus categories. You can choose one category to spend and earn throughout the year. 
• You get a 2% cash return on using dine-in and delivery services. Although you get considerable cash back, there is a price cap.
• You will get the 3% and 2% returns until you spend $50,000 on bonus categories and dining combined. It is a reasonable requirement for 12 months as small businesses can incur this much easily.
• You pay a 0% APR for the first nine months. Furthermore, you don’t pay an annual fee at all. These features make this business card easier to manage.

Hilton Honors American Express Business Card

You should get this card if you are a Hilton loyalist. Also, if you are a frequent flyer and tend to travel a lot for business meetings. Hilton Honors American Express Business Card reports negative activity to personal credit.

• Earn 80,000 Hilton Honors Bonus Points after you spend $2,000 in purchases on the Card in the first six months of Card Membership. It is a massive advantage as it boosts your points pool for handsome reward redemption on American Express cards.
• You get 7x points per dollar on booking hotels and resorts in the Hilton’s profile. You will get excellent service like airport lounges of American Express along with hoarding points.
• You earn 5x points on every dollar you spend on bonus categories. All categories are business-oriented and provide you leverage to grow your network.
• Although you have to pay a $95 annual fee, you can get it waived. That is, it is tax-deductible if you use this American Express card strictly for business purposes.
• See Rates & Fees.

Why Do Business Cards Report to Personal Credit?

When you get a business card, you give your personal information to the bureaus. They check your personal finance history, credit score, and general payment behavior. If they think you are creditworthy, they approve the business card.

It is called a personal guarantee. You promise that you will pay your business-related debt on time. The card companies issue you business cards based on personal guarantees. 

However, they have to ensure their security, too. So, they report all or some business activity to personal credit bureaus for a record. They might come after you if you fail to honor your agreement to pay your debt off timely. Ultimately, you should know which business credit cards do not report to personal credit to at least keep your credit score in check.

Types of Business Activities Reported to Personal Credit

Reporting is necessary to keep tabs on customers’ financial attitudes. Banks like Capital One, Discover, and Barclays report all business activity to personal credit. However, this article highlights the issuers who report negative or no business activity to consumer credit. 

Therefore, those issuers report these activities:

Late Payments

You are a late payee if you don’t pay within your due date. If you pay after the due date and within the billing cycle, your payment will be considered late. Nonetheless, card issuers do not rush to report your first late payment.

Chase, for example, only reports late business payments on personal credit once they become a pattern. However, late payments can make a dent in your credit score. You must be careful to pay before the last date to keep growing.

Missed Payments

You miss a payment when you fail to pay it before your billing cycle ends. A billing cycle is the period between two credit statements. It can vary between 30 – 45 days. Your due payment date lies within that period, generally towards the end. 

Missed payments scar your credit report because they crash your credibility in front of card issuing companies. You must plan things painstakingly to avoid financial destabilization. Alternatively, you can set auto-payments if you miss because you don’t remember paying on time. 

Delinquencies

Missed payments and delinquencies can be interchangeable because of the number of days you were late for dues clearance. Credit card delinquency happens when you do not make your due payments for more than 30 days.

Most issuers do not report your first business card delinquency to personal credit. However, your consumer credit bureaus will be notified if you didn’t pay for two consecutive 30-day periods. Chase reports to personal credit if you stay delinquent on your business card for over 60 days. You can even become a defaulter if you continue with this behavior.

Advantages of Reporting to Personal Credit

You might think it a nuisance that your business lags be reported to personal credit. However, it can be beneficial.

Understand Your Credit Situation

You may not be seeing the whole picture with two credit statements. Getting negative business activity reported to consumer credit may provide you an insight into how issuers view your financial condition. 

You might think a few late payments here and there would not make a difference. However, a personal credit report can tell you about your credit score, creditworthiness, and the possibility of a credit line extension.

Feel Accountable

Red-marked credit statements can instill a sense of responsibility in flippant business owners. You may not be aware that you may be near to becoming a defaulter. When your negative activity is reported to consumer credit bureaus, that nose-diving credit score can force you to start planning.

If a business owner goes into massive debt and cannot pay it off, they can downgrade their cards. It would ease their payment into small installments. 

They can even freeze their business card until they get back on their feet. However, this might not happen until they feel accountable for restoring their damaged score and reliability. 

Disadvantages of Reporting to Personal Credit

When your business card reports to personal credit, you might realize your total debt status. However, there are more disadvantages to doing so. That does not mean that you shun away from it, though. As described above, it can be a learning point in your life.

High Credit Utilization

Reporting business activities to personal credit means merging your business and personal credit utilization. It can skyrocket your usage because business expenses are generally higher than personal ones. This, in turn, will increase your credit utilization ratio.

Your ideal ratio should be under 30. It would be an indicator of your financial stability. A high usage ratio has a disastrous effect on your creditworthiness. You may not be eligible for further loans because most issuers believe high credit utilizers are a liability. 

Low Credit Score

Business card reporting to personal credit can lower your score significantly. Since many card issuers, like Chase and Citi Bank, report harmful business activity, it can be detrimental. Your professional shortcomings can reduce your trustworthiness because you might not be able to pay your debt off.

You should keep your business payments paid and above board to avoid this. A low score can affect your loan approval and credit limit. You may not be able to get another card in the future if needed.

High Debt-to-Income Ratio

Your debt-to-income ratio should not be higher than 40%. This ratio determines if your debt exceeds your gross income before tax deduction. If your ratio is high, you will be considered financially unstable.

More than a 50% debt-to-income ratio is a red flag for your business. It can mean your business might lose if you have not seen the signs. You should strive to keep your debt in check to stay out of dangerous waters.

Ways to Avoid Your Business Activity Reported to Personal Credit

• Make Timely payments: It is crucial to keep a spick-and-span credit report. Make sure to clear your dues before the due date to ensure timely payments are received. The best strategy is to plan and foresee before you apply for a credit limit. Only get an expensive card if you think you can sustain it long-term. Enable auto-pay if you are late because of forgetfulness.
• Increase Your Credit Score: Keep your business and personal score rising. Get a cheaper card, or get an affordable installment plan. Remember that your score will increase if you carry a 0 monthly balance. An ever-increasing score will count in your favor even if you made one late payment.
• Keep a Low Debt-to-Income Ratio: Your debt must not exceed your gross income. Get smaller loans you can pay off quickly. Or, break your debt into several pieces to pay monthly. Most issuers have such installment programs in place to ease it for you. A lower than 40% debt-to-income ratio will increase your reliability and further loan prospects.

Related Questions

Conclusion

Most business cards do not report every business activity to personal credit. Chase, Bank of America, US Bank, and Citi Bank are some major issuers that keep business card reporting separate. However, Chase and Bank of America report negative business activity to personal credit bureaus. US Bank and Citi Bank report business cards to business credit only.