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

Ceyda Erem

19 Jun 2020

Business personal credit card content

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! 

Compare credit cards

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  • Apply By 31 October 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)

    0% p.a. for 12 months then 11.99% p.a.

    $45

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. Low annual fee of $45 and no fees for additional cardholders.

    • 0% p.a. for 12 months then 11.99% p.a.

    • 0% p.a. for 12 months

    • 0% p.a. for 12 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

    Details Close

  • Great Southern Bank Low Rate Credit Card

    0% p.a. for 25 months and then 21.74% p.a.

    11.99% p.a.

    $49 $0 in the first year

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    • 11.99% p.a.

    • -

    • 0% p.a. for 25 months and then 21.74% p.a.

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.40%

    • $49 $0 in the first year

    • $12.50

    • 2.00%, Min $3.50

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

    Details Close

  • Apply By 10 October 2021

    humm90 Mastercard

    0% p.a. for 36 months and then 25.99% p.a. (0% balance transfer fee)

    23.99% p.a.

    $99

    With up to 110 days interest free on your spending, this card is pretty unique in the market, and great for managing your daily spend. Plus, no foreign transaction fees overseas or online.

    • 23.99% p.a.

    • -

    • 0% p.a. for 36 months and then 25.99% p.a. (0% balance transfer fee)

    • 25.99% p.a.

    • 110

    • 0%

    • $99

    • $35.00

    • 3%, min $3

    Read our Mozo Review to learn more about the Mastercard

    Details Close

  • Apply By 28 October 2021

    PayPal Rewards Card

    0% p.a. for 20 months and then 20.99% p.a.

    20.99% p.a.

    $0

    Enjoy 50,000 bonus points (conditions apply). Receive 55 interest free days on purchases and 0% balance transfer rate for the first 20 months.

    • 20.99% p.a.

    • -

    • 0% p.a. for 20 months and then 20.99% p.a.

    • 21.74% p.a.

    • 55

    • 3.40%

    • $0

    • $30.00

    • 3.5%, Min $3.50

    Read our Mozo Review to learn more about the Rewards Card

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards