Business Advice Blog - Is It Bad To Have A Business Account Credit Card But No Business?

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Is It Bad To Have A Business Account Credit Card But No Business?

Tags:Account", Business, Card, Credit, Have

I was applying for cards and to be honest I don’t even remember filling out the application for this account. But I received a Chase business account card and approved for $10,000 on it. I activated it and have been using it since. My question is, does it matter that I do not have a business and only using it as a personal account? Am I going to be assumed to report a business during tax season? I got this card but I can’t even get a capitol one card. Someone please help me out here. Thanks!

2 Responses to “Is It Bad To Have A Business Account Credit Card But No Business?”

ppc coach Says:
August 27th, 2009 at 7:16 am
AS long as you pay the monthly payment they don’t care, but be careful not to over extend yoursel their late fees and ect. are usually very steep and you will never get it paid off.Pepole use their business c c all the time for personal use.It doesn’t matter.
Initial Underwriting Group Says:
August 27th, 2009 at 7:16 am
A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.
However, some companies out there offer “business” credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.
When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business’ credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for “strong business credit” (just like that in quotes) to find services that sell the information.
Good luck,
Ilya Bodner
Small Business Owner
Initial Underwriting Group

2 Responses to “Is It Bad To Have A Business Account Credit Card But No Business?”

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