A business credit card may have an impact on your personal credit score, depending on the card issuer and how you use it. 

There are many reasons for getting a business credit card. They are usually easier to obtain than other small business loans, can assist you in developing a business credit history, and you might be eligible for some useful incentives and perks.

However, business credit cards may have an effect on your personal credit score. Understanding those implications will assist you in determining which card is best for your small business.

How do business credit cards affect you and your personal credit score?

1. They will result in a hard inquiry: Many card issuers can run a personal credit check when you apply for a business credit card to ensure that you will honour your personal guarantee. However, applying for several credit cards in a limited period of time may have a compounding negative impact on your credit score.

2. Business Credit Card issuers may not report to any credit bureau: Most major business credit card issuers do not report your balance or payments to consumer credit bureaus, or will do so only if you are more than 30 days late on a bill. If one of these payments is reported to an issuer, your credit score is likely to suffer. The most important factor in your credit score is your payment history; even one missed payment can have a huge negative effect on your credit score and can stay on your credit report for up to seven years.

Conclusion: Experts advise that we keep our personal and company finances apart. A business credit card can help you establish business credit, but it can also have an impact on your personal credit history. 

While business credit cards aren't intended to help you build personal credit, having a card from a bank that records all of your account activity to the consumer credit bureaus will help you build your personal credit history. However, if you do decide to get one, it is important that you practise good credit habits. The most important is to pay your bill on time, preferably in full, every month to prevent interest charges.