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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  • Apply By 31 May 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    • 11.99% p.a.

    • -

    • 0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Low Rate Credit Card

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  • Bankwest Zero Mastercard

    2.99% p.a. for 9 months and then 17.99% p.a.

    17.99% p.a.

    $0

    No annual fee and up to 55 days interest free on purchases. Get a notification before your minimum payment is due by setting up Easy Alerts in the Bankwest app.

    • 17.99% p.a.

    • -

    • 2.99% p.a. for 9 months and then 17.99% p.a.

    • 21.99% p.a.

    • 55

    • 2.95%

    • $0

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Zero Mastercard

    Details Close

  • Hot Deal Limited time cashback offer

    Westpac Low Rate

    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    • 13.74% p.a.

    • -

    • 0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 3.00%

    • $59

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

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  • Apply By 28 February 2021

    NAB Qantas Rewards Signature Card

    0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)

    19.99% p.a.

    $395 $295 in the first year

    NABs fastest way to earn Qantas Points. 130,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.

    • 19.99% p.a.

    • -

    • 0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 44

    • 295.0

    • 3.00%

    • $395 $295 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Qantas Rewards Signature Card

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  • Bankwest Breeze Mastercard

    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    10.99% p.a.

    $49 $0 in the first year

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    • 10.99% p.a.

    • -

    • 0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    • 21.99% p.a.

    • 55

    • 0.0

    • 2.95%

    • $49 $0 in the first year

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Breeze Mastercard

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