Best Business Credit Cards With No Personal Guarantee Of May 2024

First and foremost, the best business credit cards without a personal guarantee requirement were chosen based on whether an individual would be held personally liable for charges made by the business. Other factors considered include:

• Earnings rates
• Welcome bonus
• Introductory APR
• Annual fees and other potential fees
• Card benefits offered

Forbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case (the card rating you see on a specific “Best” list). The rating for each card changes on different “Best” lists according to how a person looking for a card in that category may value certain card features.

For instance, a card that might be considered mediocre on a list of rewards cards could be the top card on a list of rewards cards with no annual fee. That’s because the card might offer limited features compared to other rewards cards, but after we remove cards that charge an annual fee, it’s the best card that remains.

Forbes Advisor uses data from multiple government agencies to determine how much a typical cardholder might spend. We use the same numbers for cards in the same category to make sure we are comparing cards the same way. The bonus categories for spending included with each card are factored into our determination of how many rewards a cardholder could expect to earn if they use the card as a consumer normally would.

Read more: How Forbes Advisor Rates Credit Cards

For many credit card applications—especially those where proper business registration has occurred—business assets and liability are separated from a business owner’s personal assets and liability. This helps business owners protect personal property when a business fails. When a business owner gives a personal guarantee to a credit card issuer or other lender, he or she is agreeing that his or her personal assets and credit are open to collections in the event he or she can’t or doesn’t pay the business’ bill.

Though cards without a personal guarantee requirement reduce risk, they often come with many disadvantages and financial costs.

Pros of Business Credit Cards Without a Personal Guarantee Requirement

A business credit card offers many conveniences, but one without a personal guarantee requirement will mean you won’t necessarily be held personally liable for your business’ debts on the card. A card like these reduces your personal risk in financing purchases or transacting with the card but won’t necessarily eliminate it.

Cons of Business Credit Cards Without a Personal Guarantee Requirement

Though minimizing risk is always a worthwhile consideration, the disadvantages of the cards without personal guarantee requirements may mean taking the risk is worthwhile. For one, the options are severely limited. Few lenders want to assume all the risk when it comes to your business—they’ll want you to have some stake.

Otherwise, they’ll be less-inclined to offer your business a card with strong rewards, excellent benefits and other perks. Issuers may also charge higher APRs or charge other fees for the privilege of a business credit card that doesn’t risk your personal financial and credit health.

Finding the best credit card for your business’ needs can be overwhelming. Before applying, carefully consider your options. Here are some points to consider:

• Check for fees. Read the fine print. Make sure to check for fees hidden in the fine print. Some companies charge application fees or annual fees and some even charge monthly maintenance fees. The cards on this list are mostly free of fees which is a big part of why we rated them highly.
• If looking for a card without a personal guarantee requirement because of bad credit, consider rebuilding your personal consumer credit first. It often makes more sense to work on improving credit before applying for a business credit card. More (and better) personal secured card options exist for building credit. Consider the best business credit cards after building your credit and earn better rewards and score better perks.
• Analyze rewards and the cost of benefits. Shiny perks and high-rate rewards are attractive, but will your business actually use or earn them? If you don’t need office supplies, a card that primarily rewards office supply purchases doesn’t make sense. If you don’t travel, you probably don’t need travel benefits. Don’t take on more risk than you need simply because having the benefits “if you ever need them” (when you likely won’t) sounds nice.

Applying for a business credit card that doesn’t require a personal guarantee is a nearly identical process to applying for any other business card. You’ll still need to provide basic financial information for your business, such as expected revenue, assets and existing debts. However, the approval requirements may be more stringent and you may have to supply follow-up information to the card issuer after you submit your initial application.

How To Minimize Personal Liability With a Business Credit Card

If an owner or operator makes business purchases on a personal card or vice versa, it may appear that the business isn’t treated as a separate entity. A business credit card can help keep business purchases separate and keep a business’ bookkeeping compartmentalized.

Other ways you can reduce personal liability with a business credit card include reducing authorized users and employee cards. The fraud protections offered to personal credit cards by federal law are not extended to business products, so fraud protections are not always guaranteed by credit card companies. Reducing the liability you and your business faces by reducing access to the account and spending less can help. For large purchases, use other forms of financing instead, such as a business operating loan.

If you need a business credit card and can’t or don’t want to provide a personal guarantee, your options may be limited to cards such as the ones on our list above. If you can’t provide a personal guarantee because your personal credit doesn’t yet exist, you may be able to instead apply for a secured business credit card or work on building your credit.

Few of the business credit cards without personal guarantee requirements we’ve reviewed compare well to the best business credit cards. If a card without a personal guarantee requirement is important to you, it may be worth pursuing. Otherwise, a different card is likely a better, more rewarding fit.

Business credit cards without personal guarantee requirements can help reduce risk to your personal finances in the event of default, but it won’t guarantee an issuer won’t be allowed to come after you if it wants to collect. Though perhaps not as rewarding as other business cards, finding the right one without a personal guarantee requirement may still be possible.

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