Though cards without a personal guarantee requirement reduce risk, they often come with many disadvantages and financial costs.
Pros of Business Credit Cards Without a Personal Guarantee Requirement
A business credit card offers many conveniences, but one without a personal guarantee requirement will mean you won’t necessarily be held personally liable for your business’ debts on the card. These cards reduce your personal risk in financing purchases or transacting with the card but won’t necessarily eliminate it.
Cons of Business Credit Cards Without a Personal Guarantee Requirement
Though minimizing risk is always a worthwhile consideration, the disadvantages of the cards without personal guarantee requirements may create their own headaches. Card’s without a personal guarantee are very limited and are subpar compared to traditional business credit cards. Few lenders want to assume all the risk when it comes to your business—they’ll want you to have some stake.
Most of the cards on this list have a challenging application process or weak digital interface. The card agreements may not be transparent until you are in the midst of the application process. You also may be required to interact with a sales team, so don’t expect a straightforward application.
You also won’t find the best rewards, excellent benefits and other perks on cards without a personal guarantee. In fact, some of the cards on this list offer no rewards or welcome bonus. Issuers may also charge higher APRs or charge other fees for the privilege of a business credit card that doesn’t risk your personal financial and credit health.
In most cases, your business will be better served by selecting a credit card that requires a personal guarantee. Consider these top credit cards for businesses. You can minimize your risk by limiting card purchases to what can be paid in full each month.