Using your personal credit card for your business purchases may seem like a simple enough solution, but sooner or later it may come back to haunt you. If you max out a personal credit card, your credit scores will suffer because the second most important factor that makes up your credit scores is your debt, and the ratio of your balances in comparison to your credit limits is a big part of that factor. If you find yourself relying on your personal credit cards for your business purchases, that heavy usage may bring down your credit scores and make it more difficult to qualify for additional financing.
Most business credit cards, on the other hand, don’t report account activity to the owner’s personal credit reports unless they default. If you use one of these business credit cards to make a large purchase, you don’t have to worry about it potentially hurting your personal credit scores
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