DO BUSINESS CREDIT CARDS AFFECT YOUR PERSONAL CREDIT SCORE?

Many small business owners are beginning to travel much as they did before the pandemic. Those folks’ “business” credit card is now being pulled out more frequently to pay for airline tickets and hotel stays.

Typically, your business’s name and your name both appear on these cards.

Have you ever wondered, “Does this credit card’s usage and payment history affect my personal credit?”

The answer? It depends.

While some business card issuers only report these cards to business credit agencies, the practice is not a universal one.

If your “business” card is reporting on your personal credit, it’s a two edged sword. If that card is paid by your business in a timely fashion and the level of credit utilization on it is favorable, it will help your score to grow.

Conversely, if that card has a less than perfect payment history and/or a high level of credit utilization, it can damage your score.

Take a look at your personal credit report. If your “business” card appears on that report, it ‘s payment history and level of utilization are impacting your credit scores the same way that the rest of your “personal” credit cards are impacting your scores.