Credit card question: Should I get a personal or business card?

Ceyda Erem

19 Jun 2020

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If you’re ready to take your side hustle to the next level, you might be wondering if it’s worth taking out a business credit card or sticking with your personal credit card.

Although business cards have some of the same features as regular credit cards - including a purchase rate and annual fee - there are a few other things to be aware of. We’ve jotted down the four common differences between a personal credit card and a business credit card to help your decision. 

Credit limit 

One of the major differences between a personal and business credit card is credit limit. According to the Reserve Bank, the average credit card limit was around $9,500 in 2019, while data from Experian found that the average small business credit card limit in 2016 was $56,100. 

This is clearly because businesses often spend at a higher volume than regular credit card users. However, in some cases, a business will need to prove to a provider that their company has a high revenue in order to get approved for a higher limit. 

Spending tracker 

Another perk of business credit cards is the ability to export transactions into accounting software, like Xero. This could be handy if you’re thinking of having multiple credit card users and want to stay on top of how the card is used. 

Some cards in particular will help you keep an eye on your business budget to make sure spending is under control. 

Application requirements

If you already own a personal credit card, you may remember the details and information you were asked to disclose during the application process. These likely included your ID, income and existing debts. 

While a business owner still needs to provide these basic details, you may also be asked to submit an Australian Business Number (ABN), info about how long the business has been operating and its monthly or annual revenue. 

Choice of liability 

When you take out a business card, you may have to decide whether the account will operate under a personal or business liability. This refers to the person who will be responsible for making repayments and managing the account. 

Under personal liability, the sole owner of the credit card is held accountable for ensuring all repayments are made on time and will be the direct contact for any missed or late payments. On the other hand, business liability means the entire company will be held liable for any outstanding payments. 

Ready to take out a credit card to help your business grow? Head on over to our business credit card comparison tool to compare your options or check out some personal credit card offers below! 

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    CUA Low Rate Credit Card

    0% p.a. for 13 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

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    • 11.99% p.a.

    • -

    • 0% p.a. for 13 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $49 $0 in the first year

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    Westpac Low Rate

    0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

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    • -

    • 0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)

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    • 55

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    • $59

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    • 2%, Min $2.50, Max $150

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    ME frank Credit Card

    No current offer

    11.99% p.a.

    $0

    Meet Frank, a low rate credit card with up to 55 interest free days, no annual fee and no strings attached. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven. Winner of a Mozo Experts Choice Award 2019 in the No Annual Fee Platinum Credit Card category0.

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    • No current offer

    • 11.99% p.a.

    • 55

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    • $10.00

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    CUA Platinum Credit Card

    0% p.a. for 13 months and then 21.74% p.a.

    19.99% p.a.

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    • 21.74% p.a.

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    • $12.50

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    Apply By 30 September 2020

    Qantas Money Qantas Premier Platinum

    0% p.a. for 18 months and then 21.99% p.a.

    19.99% p.a.

    $299 $199 in the first year

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    • 19.99% p.a.

    • -

    • 0% p.a. for 18 months and then 21.99% p.a.

    • 21.99% p.a.

    • 55

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    • 3.00%

    • $299 $199 in the first year

    • $30.00

    • 3%, min $3.00

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