Can I use a business credit card to buy personal items?

Question

The reason I want to know is because it offers much better fixed APR then my other cards and it has 12 months 0% APR. It would be my card so I don't see why it would make a difference either way as long as it's paid. I don't need it or want it for business. I have been approved but it is not here yet and I certainly don't want to break any laws or get myself into some debt with the card holder for breaking some agreement. So, safe? Not safe? Thanks.

Answer 1

They are no laws against it. However if you are audited as a business owner you better keep good records. Take these purchases as business expenses will affect your profit and loss. Thus affecting how much income and state taxes you owe for this business .. Best to use a seperate card if at all possible.

FYI  A credit card used for business does not necessarily have to be a card that issued under your business name. In fact a personal card that you use exclusively for business has more consumer protection that a business issued card. You might want to look int this a bit as well.

Answer 2

iF you are asking if a credit card offers YOU a business credit card not through your company then yes you may use it to your hearts desire but if this card is through your employer then no you may not use it for personal use.

Answer 3

I take it that this is one of those bus card offers and you are responsible for the balance on the card not your employer?

It's a good deal for you if your balance is down to zero in 12 months.  If you have a balance in 12 months when the APR reverts to 20% or more you start revolving credit which is good for them and bad for you.  

They also can charge some hefty fees and annual premiums on bus cards.

Answer 4

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

Answer 5

Can you say "misappropriation of funds"? Or maybe "credit card abuse" since it's a business card, and not a personal card.

Makes a diff if you want to keep your job and/or stay out of jail, I reckon. Take your chances and see what happens.