Benefits of having personal and business cards from the same issuer

Major credit card issuers offer a wide range of credit cards. When looking for a new account, you may wonder if you should stick with the same company for both personal and business needs.

While there are no hard and fast rules, keeping your accounts in a family certainly has its benefits. You will not pool costs by charging personal expenses on a business card (or vice versa), but will enjoy the benefits of working with a set of loan products from one company.

Here are seven benefits of having your personal and business credit cards from the same issuer.

More likely to get a business card

The best business credit cards tend to require particularly high credit scores, which can make it difficult to qualify for a loan if you’re just starting out. According to Markia Brown, certified financial education instructor at Money Plug, LLCA, in addition to your credit score and income, your personal relationship with the lender is used to determine your chances of new accounts being approved.

“If a consumer has established a mutually beneficial relationship with a bank or credit union,” Brown says, “then they can use that personal relationship to apply for a business loan account that they would not normally have access to if the decision was based solely on to business.”

So if you’re eyeing the Capital on Tap Business credit card because it includes a $1,200 cash back bonus (after withdrawing $50,000 within the first six months of opening an account), but you haven’t set up yet credit history, you may want to start with a Capital One Quicksilver Secured Cash Rewards credit card. With such a starter card, you can establish a great relationship with the issuer and then move on to a card with great rewards.

Seamless transfer of rewards and credits

When you have two cards from the same issuer, you can easily combine your rewards. This can be especially useful when you earn them strategically by concentrating charging on the card with the highest reward rate per category. Then, when you’re ready to redeem, you can simply transfer your rewards balance to a card with a better redemption rate.

For example, if you have a Chase Ink Business Preferred® card, you will receive 1.25 cents per point when you redeem points through Chase Ultimate Rewards. However, if you also have a Chase Sapphire Reserve® card, you will earn 1.5 cents per point, so transferring them makes sense.

This feature also comes in handy when you want to close one of the cards. You can simply transfer the rewards and any credits to the card you have saved.

Protect your credit score

Every time you apply for a credit card, your credit record will be flagged as a hard request, which can lower your score. However, if your credit card issuer offers you the option to open one of their business cards after you’ve had a personal card for a while (or vice versa), you can avoid this complicated prompt. This will be useful when you are trying to save all possible points.

Contact your credit card issuer and ask if they will do a hard credit check or if a new account will be opened based on your history with them.

Establish a strong relationship with the company

Generally, banks like it when you have many types of accounts, from deposit accounts (such as savings and checking accounts) to auto loans and home loans, as well as various credit cards.

When you have both a business credit card and a personal card from the same issuer (and manage them well), it can build your reputation as a valued customer. This may enable you to qualify for higher lines of credit, lower interest rates on other loan products, and even free banking services.

Optimize account management

If you’re a busy person—like most business owners—saving time managing your account with a single issuer can be an attractive benefit. Lori Greymont, real estate investor and host of the new reality show Funding Faceoff, is always on the go. That’s why she doesn’t mess around with different banks. She has Wells Fargo personal and business cards. “With one app on my phone, I can do everything,” Greymont says. “It saves me time and makes my life easier.”

You don’t need to learn a new system

Sometimes you just want to deal with one bank rather than two or more, says Brown. “The consumer is already familiar with the bank and some of its policies, so they will be very comfortable doing business with this bank,” says Brown.

Each credit card issuer has its own customer service system, phone number, website, chat feature, and app. As a business owner, you may not want to deal with multiple companies.

Premium service

Another benefit of having both business and personal credit cards with the same bank is that it can entitle you to additional special services.

“I have a personal banker in Wells Fargo,” Greymont says. “I don’t need to go online. I just call my banker who can see all my accounts at once. If you have more than one card at the bank, they want to keep your business.”

And that means they’re interested in making you happy by treating you with kid gloves.

bottom line

Forming a positive relationship with your credit card issuer by carrying both a personal credit card and a business card can come in handy during difficult times. Graymont points out that having multiple bank accounts can be helpful during an economic downturn when you need help.

There may come a time when you suddenly need a higher credit limit, for example, or you cannot make a payment as agreed. If you demonstrate a sustained and positive pattern of dealing with different types of cards, your card issuer may give you a break.

After all, you shouldn’t be tied to one credit card issuer. While having a pair of cards with one definitely has its benefits, there are plenty of other cards worth checking out.

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