Most business credit cards include a personal guarantee clause in the pricing and terms section of a credit card agreement. It means you’re offering a personal guarantee of repayment in the event that any payments are missed by the business or your account defaults.
This is common practice on unsecured products such as credit cards, but there are a handful of options available to business owners who don’t want to agree to a personal guarantee.
The Brex Corporate Card for Startups* has some steep requirements, but a personal guarantee isn’t one of them. It offers high rewards rates on a variety of different purchases including rideshares, restaurants and travel. To qualify, your business will either need to have $500,000 in cash in a business account, generate more than $1 million in annual revenue, have more than 50 employees, have a referral or receive an equity investment from an angel investor, VC, accelerator or web3 token.
Brex tends to have higher credit limits as well, since its dynamic credit limits are based on your company’s financials. However, this is a charge card, which means you can’t revolve a balance. So make sure you only spend what you can pay off in full each month to avoid penalties or having your card frozen or closed.
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The Brex Corporate Card for Startups* has some steep requirements, but a personal guarantee isn’t one of them. It offers high rewards rates on a variety of different purchases including rideshares, restaurants and travel. To qualify, your business will either need to have $500,000 in cash in a business account, generate more than $1 million in annual revenue, have more than 50 employees, have a referral or receive an equity investment from an angel investor, VC, accelerator or web3 token.
Brex tends to have higher credit limits as well, since its dynamic credit limits are based on your company’s financials. However, this is a charge card, which means you can’t revolve a balance. So make sure you only spend what you can pay off in full each month to avoid penalties or having your card frozen or closed.
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The Ramp Business Card lets you restrict or block spending to specific vendors on any employee card or company-wide. Like the Brex pick, it’s also a charge card, meaning there’s no annual percentage rate, or APR, to worry about -- but you will need to pay your full balance each month.
There are no fees and you can access unlimited physical or virtual cards. To qualify, you’ll need $75,000 in cash in any US business bank account you link to your application. Ramp doesn’t accept individuals or sole proprietors.
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The Ramp Business Card lets you restrict or block spending to specific vendors on any employee card or company-wide. Like the Brex pick, it’s also a charge card, meaning there’s no annual percentage rate, or APR, to worry about -- but you will need to pay your full balance each month.
There are no fees and you can access unlimited physical or virtual cards. To qualify, you’ll need $75,000 in cash in any US business bank account you link to your application. Ramp doesn’t accept individuals or sole proprietors.
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While the Sam’s Club® Mastercard® typically does require you to sign a personal guarantee, you can avoid doing so if your business generates more than $5 million in annual sales or revenue, is older than two years, has more than 10 employees and isn’t a partnership or proprietorship.
If you clear those hurdles, you can earn a good return on gas purchases, dining and Sam’s Club purchases. Just be aware you’ll earn rewards as Sam’s Cash, which can only be redeemed for Sam’s Club purchases.
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While the Sam’s Club® Mastercard® typically does require you to sign a personal guarantee, you can avoid doing so if your business generates more than $5 million in annual sales or revenue, is older than two years, has more than 10 employees and isn’t a partnership or proprietorship.
If you clear those hurdles, you can earn a good return on gas purchases, dining and Sam’s Club purchases. Just be aware you’ll earn rewards as Sam’s Cash, which can only be redeemed for Sam’s Club purchases.
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You’ll need to have a business banking relationship with Silicon Valley Bank to qualify, but if you do, you won’t have to worry about an annual fee or costs for providing your employees with corporate cards.
The card earns a flat 2x points per dollar for purchases, which can then be redeemed for statement credits. It’s also a charge card, which means you’ll need to pay your bill in full each month.
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You’ll need to have a business banking relationship with Silicon Valley Bank to qualify, but if you do, you won’t have to worry about an annual fee or costs for providing your employees with corporate cards.
The card earns a flat 2x points per dollar for purchases, which can then be redeemed for statement credits. It’s also a charge card, which means you’ll need to pay your bill in full each month.
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While its name is a bit deceiving, the Office Depot Business Credit Account* is indeed a credit card and not a charge card, which sets it apart from most of the other cards on this list. To get approved, your business must either generate $5 million in annual revenue and be older than three years, or qualify as a government entity or a non-profit organization. You can save $50 on your first payment of $150 or more, and access special offers and discounts by joining Office Depot OfficeMax Rewards.
Since you can carry a balance with this card, it leaves you on the hook for interest charges if you forget to pay your bill in full. We recommend only making purchases you can pay off fully each month.
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While its name is a bit deceiving, the Office Depot Business Credit Account* is indeed a credit card and not a charge card, which sets it apart from most of the other cards on this list. To get approved, your business must either generate $5 million in annual revenue and be older than three years, or qualify as a government entity or a non-profit organization. You can save $50 on your first payment of $150 or more, and access special offers and discounts by joining Office Depot OfficeMax Rewards.
Since you can carry a balance with this card, it leaves you on the hook for interest charges if you forget to pay your bill in full. We recommend only making purchases you can pay off fully each month.
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What is a personal guarantee?
A personal guarantee means you’re personally held responsible for any payments that are missed by your business. Should the business default on payments, it gives the credit card issuer the right to come to the person who accepted the guarantee to cover the expense from their personal assets.
Since a business credit card is a type of unsecured credit, which means you don’t provide any form of collateral when you’re accepted as a cardholder, it’s common to require a personal guarantee. This helps mitigate the risk credit card issuers take when signing on a new business account, in the event the business fails or can’t repay its debts.
In contrast, a business guarantee ensures the business itself will be responsible for any unpaid charges on a credit card. A business guarantee is often used if the business provides employee credit cards.
How do you qualify for a card without a personal guarantee?
Qualification for a card without a personal guarantee will vary depending on the issuer, but usually, you’ll need to have good business credit, generate a certain amount of annual revenue or sales, have a certain number of employees, hold a specific amount of cash in your business account, and your business will need to be a certain age.
Most cards without a personal guarantee are also corporate credit cards, which means you won’t qualify if you’re a gig worker, sole proprietor or a small business owner.
How to choose a card without a personal guarantee
First, make sure you meet the issuer’s criteria to qualify for the card. That could include age of your business, required business credit, number of employees, annual revenue or other factors. It also means you’ll likely need to be a corporation or a large business.
Be sure to also weigh other considerations like fees, charge cards versus traditional corporate cards, costs for providing employees with cards and rewards potential. Most business cards offer some form of spend controls too, such as setting spending limits or other restrictions for employee cards, so choose the card that provides the features you’re most interested in.
FAQs
Yes, most business cards include a personal guarantee clause in the credit card agreement. This is done to mitigate the risk credit card companies take on when providing credit to a business.
It’s hard not to if you’re a sole proprietor or small business owner. Most cards without a personal guarantee are charge cards and only offer credit to corporations or businesses that meet strict criteria. If you can’t qualify for a business card without a personal guarantee, be sure you’re making all of your payments on time and in full to avoid potential issues.
A credit card carries an annual percentage rate, which is the percentage at which interest accrues on any balance you carry from month to month. A charge card doesn’t have an APR, which means you can avoid interest, but you must pay your balance in full or you risk losing the card account and face penalties.
*All information about the Brex Corporate Card for Startups, Sam’s Club Mastercard, SVB Innovators Card and the Office Depot Business Credit Account has been collected independently by CNET and has not been reviewed by the issuer.
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