When applying for a business credit card, you’re required to sign the Agreement form which includes all the terms and conditions of your credit card issuer. Part of these conditions is the Personal Liability Agreement where the business credit card holder agrees to be the one responsible for the payments of all future debts that would be charged to the card.
If you’re an entrepreneur with a business credit card, are you really aware of this condition? Do you fully understand your obligations as the card holder? In order to be clear on this issue, let’s talk about how personal liability applies to business credit cards.
Personal Liability and Small Business Credit Cards
If you’ve just started your business and you have not yet established your business’s credit history, your potential lender or your credit card company would take your personal credit report into consideration. If your personal credit history qualifies with the credit card’s requirements, chances are your application would be approved. Nevertheless, you’ll be subjected to the personal liability statement on your contract.
