Are Business Credit Cards Personally Guaranteed? Here’s What You Need to Know Before You Apply

A business credit card can be a smart tool for managing expenses, building credit, and earning rewards tailored to everyday business purchases. Many cards also offer introductory 0% interest periods, cashback, or travel benefits that are well suited for business owners looking to maximize their spending.

What many don't realize is that most business credit cards come with a personal guarantee. This means you could be personally responsible for the balance if your business is unable to repay the debt. It's a detail that catches some people off guard, especially those who are trying to separate their personal and business finances.

In this article, you'll learn what a personal guarantee means, why most 0% APR business credit cards include one, and how to manage it wisely with the help of Fund&Grow's expert coaching.

Key Takeaways

• Most business credit cards require a personal guarantee, especially for 0% offers.
• A personal guarantee means you're responsible for the debt if your business is unable to repay it.
• These cards usually don't report to your personal credit unless payments are missed or the account defaults.
• Understanding the risks and choosing the right cards can help protect your personal credit.
• Fund&Grow coaches business owners on how to use personal guarantees strategically to access high-limit, 0% interest business credit.

What Is a Personal Guarantee?

A personal guarantee is a legal agreement that holds you, the business owner, responsible for repaying any debt the business cannot cover. It provides the credit issuer with added security, especially if the business has a limited or no established credit history. By signing the guarantee, you agree to cover the balance personally if your business falls behind.

This is common for small businesses and startups, as lenders often perceive them as higher risk. The guarantee reduces that risk, which is why it's included in most business credit card agreements. Even though the card is issued in your business's name, you become the backup payer in the event that things go wrong.

Do All Business Credit Cards Require a Personal Guarantee?

Yes, most business credit cards do require a personal guarantee, especially if your business is new or lacks an established credit profile. Issuers want assurance that someone will repay the debt if the business is unable to do so. For many small business owners, this means using their personal credit history to qualify.

There are, however, a few exceptions. Some corporate cards waive the guarantee, but these are typically limited to larger companies with strong revenue, multiple employees, and a long credit history. These cards aren't typically available to startups or solo entrepreneurs.

When you work with us at Fund&Grow, we'll coach you on how to identify cards that align with your current credit profile and business goals. With the right strategy, it's possible to access high-limit business credit while keeping personal risk low.

How a Personal Guarantee Affects Your Personal Credit

A personal guarantee doesn't automatically place most business credit cards on your personal credit report. In most cases, the account stays off your report as long as payments are made on time and the account remains in good standing.

If the business misses payments or defaults, the issuer can report the balance to personal credit bureaus and pursue you for repayment. This can negatively impact your credit score and lead to long-term financial consequences.

Pros and Cons of Personally Guaranteed Business Credit Cards

Business credit cards that require a personal guarantee can be useful, but they come with trade-offs. Here's a quick look at the benefits and risks:

Use Personal Guarantees Strategically, Not Blindly

Personal guarantees are part of most business credit cards, but that doesn't mean they have to put your credit at risk. Fund&Grow shows you how to approach them with a plan. You'll get step-by-step coaching on how to apply for cards that report to your business, not your personal credit, as long as they're managed correctly.

Our team helps you build a strong credit profile, space out applications, and maintain accounts that stay in good standing. You'll also learn how to stack and rotate multiple cards to access more funding over time without damaging your personal credit or relying on loans. It's a system built to protect your finances while helping your business grow.

Contact us now to learn more!

Frequently Asked Questions

Am I personally liable for a company credit card?

In most cases, yes. When you apply for a business credit card, you're usually required to sign a personal guarantee. This means you're responsible for paying the balance if your business can't. However, with proper management, the account typically won't appear on your personal credit report unless payments are missed.

What is the minimum credit score for a business credit card?

Most business credit cards require a personal credit score of around 680 or higher. Fund&Grow coaches clients on how to build their profiles and improve approval chances, even if their score needs work.

How much is a business credit card limit?

Credit limits vary based on personal credit, business revenue, and the card issuer. Some limits start at around $5,000 to $10,000, while others can increase significantly over time. With the right strategy, clients working with Fund&Grow can access up to $250,000 in total credit with card stacking.

About the Author:

Ari Page is the Founder and CEO of Fund&Grow, helping entrepreneurs, investors, and small business owners secure up to $250,000 in 0% interest business credit cards. Since 2007, he has grown Fund&Grow into an Inc. 5000 company, securing nearly $2 billion in business credit cards for thousands of clients. With 6,000+ 4.9-star reviews and an A+ BBB rating, Fund&Grow is a trusted leader in business funding. Ari is also the author of Fund&Grow: Easy & Affordable Ways to Get Money for Your Business and a passionate advocate for mindset, success, and the Law of Attraction. He lives in Spring Hill, FL, inspiring others to grow their businesses and achieve financial freedom.