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! 

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  • Apply By 28 February 2022

    Bendigo Bank Low Rate Credit Card

    No current offer

    0% p.a. for 18 months then 11.99% p.a.

    $45

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

    • 0% p.a. for 18 months then 11.99% p.a.

    • 0% p.a. for 18 months

    • No current offer

    • 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

  • Virgin Money Virgin Australia Velocity Flyer Card - Bonus Points Offer

    0% p.a. for 18 months and then 20.99% p.a.

    20.74% p.a.

    $129 $64 in the first year

    Earn up to 100,000 bonus points in the first 4 months (conditions apply) and 0% Balance transfer for 18 months

    • 20.74% p.a.

    • -

    • 0% p.a. for 18 months and then 20.99% p.a.

    • 20.99% p.a.

    • 55

    • 64.0

    • 3.30%

    • $129 $64 in the first year

    • $30.00

    • 2.7%, Min $2.70

    Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Bonus Points Offer

    Details Close

  • Westpac Low Rate

    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59 $0 in the first year

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

    • 13.74% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 3%

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • Bendigo Bank Platinum Rewards Credit Card

    No current offer

    0% p.a. for 12 months then 19.99% p.a.

    $89

    Earn 1.5 Bendigo Rewards points for every dollar spent (T&Cs apply). Up to 55 days interest free, comprehensive travel insurance, purchase protection and extended warranty.

    • 0% p.a. for 12 months then 19.99% p.a.

    • 0% p.a. for 12 months

    • No current offer

    • 21.99% p.a.

    • 55

    • 3.00%

    • $89

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Platinum Rewards Credit Card

    Details Close

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