The intro-APR trap
A 0% introductory period is useful for a defined purchase you will clear inside the window. It becomes expensive the moment the balance survives the window, because the go-to rate applies to whatever remains and business cards rarely carry the consumer protections people assume.
Most small business cards are underwritten primarily on the owner's personal credit and carry a personal guarantee, so business card debt is personal debt in every way that matters at default.
Cards as a credit-building tool
Some issuers report business card activity to the business credit bureaus, some report to personal bureaus, some to both, and the policies change. If building a business credit file is the objective, confirm the reporting policy before applying - it is the only thing that determines whether the card helps.
Commonly used for
- Monthly operating expenses paid off in full
- Separating business and personal spending cleanly for accounting
- Short, defined purchases inside a 0% introductory window
What to check before signing
- Carried balances at 25-30% APR outpace nearly every other funding cost
- Personal guarantees mean business card debt follows you personally
- Cash advances on a business card price worse than the purchase APR and start accruing immediately
Business cards: common questions
- Do business credit cards affect my personal credit?
- It depends on the issuer. Many report only to business bureaus in good standing but report delinquencies to personal bureaus. Nearly all require a personal guarantee. Ask the issuer directly - the answer varies by card, not just by bank.