What’s the catch with business credit cards?
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
Quick answer
The main catches are interest if you don’t clear the balance, personal liability or guarantees, weaker consumer protection than personal cards, fees that kick in after year one, and rewards with conditions.
Our pick for avoiding most catches: a no-annual-fee card you clear in full by Direct Debit every month — for example Barclaycard Select Cashback (£0 annual fee) or Capital on Tap’s free card (companies only).
Catches, with real examples
| Catch | Example (as of 3 October 2026) | How to reduce it |
|---|---|---|
| Interest | £1,200 over 12 months at 25.5% APR costs £148.90 (Barclaycard example) | Pay the full balance by Direct Debit |
| Fees after year one | Amex Business Gold: £0 in year one, then £195; NatWest: £30 a card from year two unless you spend £6,000+ | Diary the renewal date and review |
| Spending thresholds | Barclaycard: 1% cashback only in months you spend £2,000+ | Check your typical monthly spend first |
| Eligibility | Capital on Tap: Ltd, LLP and PLC only | Check before you apply to avoid needless searches |
| Personal guarantees | Amex Business Gold (new cards): company liability supported by a personal guarantee | Read the guarantee terms before signing |
| Thinner protection | Section 75 often doesn’t apply, especially for limited companies | For big purchases, check the supplier carefully |
Figures as of 3 October 2026, taken from each provider’s own website. Rates, fees and eligibility change and depend on your circumstances — check the provider before applying.
Who it’s for
- Owners about to apply for their first business card
- Businesses carrying a card balance
- Directors asked to sign a personal guarantee
- Anyone comparing business cards with personal cards
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You’ve already compared and want terms — check the provider directly
- You need help with existing debt — speak to a free debt adviser
- You want a full comparison table — see the comparison table
- You need legal advice on a guarantee — speak to a solicitor
Full explanation
Section 75, properly explained
Section 75 makes a card provider jointly liable with a supplier for breach of contract or misrepresentation, for single items priced between £100 and £30,000. It applies to regulated credit agreements. Limited companies aren’t covered.
Sole traders and partnerships of two or three partners can be, if the agreement is regulated — HSBC’s commercial card terms, for example, say agreements are regulated where expected borrowing is under £25,000 and the customer is a sole trader, small partnership or unincorporated body. Charge cards paid in full each month generally fall outside Section 75.
Personal guarantees
A guarantee means you can be asked to repay the company’s card debt personally. That matters most if the company runs into trouble — exactly when you’d least want it.
Credit files
Applications usually involve a credit search, and sole traders’ card use may show on personal files. See Business credit card eligibility.
More: Should I get a business credit card?, Business credit card FAQs and Business credit card APR and fee comparison.
The catch
The biggest catch: business cards often include annual fees, higher APRs than personal cards, strict eligibility rules, limited rewards — and Section 75 protection often doesn’t apply, especially for limited companies.
See how much a balance would really cost:
FAQs
Do business credit cards have Section 75 protection?
Often not, especially for limited companies. Sole traders and small partnerships may be covered on regulated cards for items priced £100 to £30,000.
Are business card APRs higher than personal cards?
They can be. Representative APRs on the cards we checked were 24.3% (NatWest) and 25.5% (Barclaycard).
What is a personal guarantee?
A promise that you’ll repay the business’s debt if it can’t.
Do business cards affect my personal credit?
They can, especially for sole traders and directors who give a guarantee.
How do I avoid paying interest?
Pay the full statement balance by the due date every month, ideally by Direct Debit.
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