Is It Better To Use A Personal Or Business Credit Card?

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With many readers getting approval for the Awesome Chase Ink Cash and Chase Ink Unlimited credit cards, we’ve been getting a lot of questions asking what are the advantages to opening/spending on a business or personal credit card.

There are two aspects that stand out most.

1. Your credit score.

One of the biggest factors in your FICO score is based on credit utilization, that means how much of your credit line are you using each month. The lower your utilization the higher your score will be.

On personal cards you should make sure to always pay off your card before the bill closes, so it doesn’t hurt your utilization score. But the balance being over $0 is actually good for you, so it can help your score to leave a couple dollars unpaid each month.

On business cards it’s much simpler, they don’t go on your credit report! That means while a bill closing with $5,000 out of a $10,000 personal credit line will hurt your score a lot, on a business card it will have absolutely no effect. This is even more valuable if you take advantage of the intro 0% APR many business cards offer, as that will not hurt your credit score.

Please though, always make sure you can pay your bills and never spend more than you can afford, credit cards should be treated as cash when it comes to spending!

2. Chase & Barclays 5/24 & 6/24 rules.

Chase will usually only approve you for a credit card if you have less than 5 personal cards opened in the past 24 months. The same guideline applies for Barclays bank cards for 6 cards in the past 24 months.

That means you will want to be selective about which personal cards you open.

However business cards from most banks, excluding Discover and some Capital One business cards, are not on your personal credit report. That means you can open multiple business cards and it won’t affect future approvals at Chase or Barclays!

Don’t have a registered business? Not a problem!

Anything that earns you income is considered a Sole Proprietorship. That could be a hobby, side hustle, or really anything at all. When you apply there are just three things you must do. 1. Apply as a Sole Proprietorship. 2. Apply with your own legal name for the business name. 3. Use your social security number instead of an EIN. You can even get multiple business cards approved for the same business!

In summary: If you have a high credit utilization you definitely want to do most spending on a business card. If you are looking to apply for new cards that won’t count towards Chase’s 5/24 rule you will want to open a business card.

We have been making reels on Instagram and TikTok to help break down the credit card application process, what topics do you want covered next?

Read more credit card advice from us here!

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11 Comments On "Is It Better To Use A Personal Or Business Credit Card?"

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Re point #1- not sure how important this is considering that I have a top credit score and never paid my bills on my personal cards until the due date. It seems like a headache paying the bills twice a month (once before it closes and once after) if itā€™s not even a big impact


ā€œ Chase will usually only approve you for a credit card if you have less than 5 personal cards opened in the past 24 months. ā€œ. Chase denied me another ink stating 5/24 but at least 2 of those cards were business cards.




Thank you! Did that and was approved!

How do you do this on chase ?

On personal cards you should make sure to always pay off your card before the bill closes, so it doesnā€™t hurt your utilization score

Canā€™t find an option other than to pay on due date on the chase app or mobile site


Just pay the bill manually before the statement close date.


Are there helpful tips to get approved for a business credit card when having a lower credit score primarily due to utilization on personal cards?


Always better to use card that will earn you most points! If point earn are the same (or you’re in the search of a mortgage) then read the article!


Just so I understand: it helps a credit score to pay before the monthly cycle even closes (i.e., before the statement is generated)?


I was declined. When I tried find out why the told me itā€™s because 13 years ago I made a settlement with them on some balances. I pointed out that Iā€™ve been perfect since then. Iā€™ve gotten approved for any other card that I applied for. United , freedom and sapphire. I have money on deposit with them as well. Told them that I had hit a rough patch put to see how perfect itā€™s been since. Most that they offered to do was send it for review.