A personal guarantee on a credit card makes you personally responsible for all payments and any resulting debt charged to that card. A business card with no personal guarantee means you may be only partially liable or not liable at all for repaying the balance your business defaulted on.
Business cards with no personal guarantee are typically corporate cards, but some can also be business charge cards. You just won’t be able to carry a balance with the latter.
Since most business credit cards require a personal guarantee to open an account, there are only a handful of cards that won’t hold you completely liable for default on your credit card. Here are Bankrate experts’ best options for business cards without a personal guarantee.
Comparing the best business cards with no personal guarantee
| Card name | Card type | Best for | Bankrate score |
|---|---|---|---|
| SVB Innovator Card* | Charge card | Fast-growing companies | N/A |
| Brex Card | Charge card | Significant rewards | 5.0 |
| Ramp Corporate Card* | Charge card | Flat-rate rewards | N/A |
| Office Depot OfficeMax Business Credit Account* | Credit card | Carrying a balance | N/A |
Top business cards with no personal guarantee
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Silicon Valley Bank (SVB) offers the SVB Innovator Card*, a charge card with a business rewards program that offers a flat rewards rate on all purchases. You’ll need to pay your balance in full every billing cycle, but this card’s generous rewards program can help you build a points balance that you can redeem for travel, office needs or to offset next month’s spending.
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Pros
- Earn 2X unlimited rewards points for every purchase you make.
- You can take advantage of a travel and expense management platform for tracking your business spending.
Cons
- You must pay in full every billing cycle, which doesn’t give you much spending flexibility if you rely on business income over the short term.
- High credit requirements may disqualify several applicants.
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The Brex Card has an outstanding rewards program, no annual fee and a welcome offer. You’ll also have the potential to qualify for a substantial credit limit, which can give your business plenty of room within each billing cycle to make purchases. Startups typically need a business checking account with at least $50,000 to qualify (lower if referred by certain Brex partners), but this card could be a great fit for business owners who spend a lot of time traveling, dining and taking rideshares.
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Pros
- Your credit limit is based on your company’s equity and spending patterns.
- Earn boosted rewards on popular categories like restaurants and recurring software.
- It has a global reach — you can issue cards in employees’ local currency.
Cons
- You cannot carry a balance, so relying solely on your Brex card might strain your business spending.
- Startups might need a business account with at least $50,000 deposited, a relatively high figure if you are just starting out.
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The Ramp Corporate Card*, which is also a charge card, doesn’t require a credit check, making it a solid pick for anyone with a limited credit history. You also won’t pay an abundance of fees with this card, such as annual fees, foreign transaction fees or setup fees. The Ramp card is a great pick if you want to access a solid flat rate and a handful of other business-related features to help you track and manage your income and expenses.
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Pros
- Ramp advertises the chance to get a high credit limit, which can be beneficial if you have high monthly expenses.
- Its flat rewards rate can help you earn a decent chunk of cash back.
Cons
- You can’t carry a balance.
- It offers valuable features but skips luxury perks found on other corporate cards.
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The Office Depot OfficeMax Business Credit Account* is a credit card and not a charge card, which can help when cash is tight and a revolving balance is necessary. However, this is a closed-loop card, meaning that it can only be used at Office Depot OfficeMax stores.
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Pros
- You can carry your balance monthly to stagger your expenses when cash flow is tight.
- This card carries no annual fee, so there’s no added cost to hold it.
Cons
- You can only use this card at Office Depot OfficeMax locations.
- You’ll pay interest on any balance you carry.
How to choose a business card with no personal guarantee
Choosing a business card can be difficult, and narrowing your options to a card with no personal guarantee will limit your options even more. The best way to choose is to know your monthly budget: Identify how much money your business spends each month and how much you can afford to pay. Balancing your expenses and income will be important — especially if several of your options are charge cards.
- Evaluate your income and expenses: If you can’t afford to pay your bills each month, a charge card will not be a good pick for you. Instead, you might want to go with a traditional business credit card that requires a personal guarantee.
- Decide on perks: Several business cards offer perks and benefits for software and other business applications that help you run your day-to-day. Choose a card with perks you’ll use.
- Don’t fixate on one feature: A card with no personal guarantee seems nice, but don’t romanticize it. It might not be a good fit for you if the cards that don’t have personal guarantees aren’t aligned with your needs.
How to minimize personal liability with a business credit card
Choosing a business card with no personal guarantee is the best way to minimize your personal liability for your business’s debts. But if you aren’t eligible for one, the amount of money you’ll be responsible for if you default on a business card depends mainly on the type of personal liability clause you agreed to:
- Limited liability: The issuer can collect a set dollar limit.
- Unlimited liability: The issuer can collect the entire amount due, plus financing and legal fees.
If you’re in the market for a new business credit card, opting for one with a limited personal guarantee — rather than an unlimited guarantee — may offer some degree of protection.
Of course, you can also minimize the amount you would be held liable for repaying by staying in control of your account. Avoid surprises by paying bills in full on time, halting all charges when you cannot pay the minimum requested payment and checking your balance frequently.
Plus, if you have employee cards connected to the account, review their charges. Many issuers allow primary cardholders to set lower charging limits or locks on employee cards. Taking advantage of those features if they’re available will help you minimize unexpected liability.
Frequently asked questions
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Unless you have a card that specifies no personal guarantee, like those described above, the answer is yes. You are personally liable for any balance you run up on a business credit card. But even cards that don’t require personal guarantees have requirements. Most require you to incorporate your business in order to qualify or open a business bank account with funds that will dictate the limit of your credit line, as with the SVB Innovators Card.
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Mainly, the lender will not be able to collect the business owner’s personal assets if the business fails to pay its bills.
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No — it’s a part of the application process. If you apply for a business credit card with a personal guarantee — which is included with most business cards, unless otherwise stated — you are agreeing to be held personally liable for payment when you submit the application.
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A lender will generally enforce a personal guarantee in the same manner that it would handle any debt — it’ll eventually take you to court.
The bottom line
When comparing business credit cards, no-personal-guarantee options may be attractive if you don’t want to be personally liable for business debt. While the credit card company may be able to sue your business for unpaid credit card debt, your personal assets would be kept separate and protected.
There are several downsides, though. Business credit cards with no personal guarantee are typically unavailable to sole proprietors, and meeting the additional requirements (such as minimum account balances or revenue streams) can be challenging. In general, there are few business cards available without a personal guarantee, and they often offer fewer perks and rewards than other business cards, too.
*All information about the SVB Innovators Card, Ramp Corporate Card and Office Depot OfficeMax Business Credit Account has been collected independently by Bankrate and has not been reviewed or approved by the issuer.
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