Is it illegal or some type of fraud to use business credit cards for personal use?

I’m not talking about maxing them out, but using them instead of personal credit cards, say, if the business closed. The business cards don’t show on the personal credit report.

A business that you personally owned as a sole prop; not a corporation or another company you work for.
After looking at several sites, it appears it coulbe be construed as fraud, but for sole props, there is really no way to prove it. The credit companies don’t police it and don’t care as long as payments are made.

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9 Responses to Is it illegal or some type of fraud to use business credit cards for personal use?

  1. bearr41 says:

    Yes, it is illegal to use a business account for personal expenses.

  2. jandis5457 says:

    If this is a card from your business I don’t see what it would matter, I would check with the cc provider just in case. However, if this account is owned by your employer I could see that it could be grounds for termination.

  3. independancy says:

    Yes, if you get caught then you will prob have to repay, at least.

  4. saved_astronaut says:

    i wouldn’t even go there. if i were u, i’d wanna KEEP my job by NOT risking it!!! 2 many ppl out there don’t even HAVE jobs who’d really like 2 work. the economy’s hurting right now which causes many jobs 2 B cut. u should B very fortun8 u even HAVE a job, b/c many out there don’t

  5. me-inside says:

    Most companies will fire you on the spot, others will give you a warning if they like you and the amount is small (<$20), others will have you pay it back (if you fail to, press charges) and then fire you after you pay back.

  6. PattyAnn says:

    Businesses get special discounts. If you aren’t the business, you are not entitled to those discounts. Legally you are misusing a business card using it for personal, and that would be against the law.

  7. bdancer222 says:

    If the account is from your business or a business account in your name, you can use it for whatever purpose as long as you pay it and don’t claim personal expenses as business expenses.

    Many credit card companies actually offer business credit card accounts to individuals who do not have businesses. Business accounts will not show on your personal credit report. They also do not have to comply with FCRA and FDCPA as they are NOT consumer debt.

  8. coachpisco@verizon.net says:

    Please tell me this question is a joke. Of course it’s illegal to use a business credit card for personal use, IN ANY SITUATION!

  9. rusty_266 says:

    I wouldn’t worry about it. As long as you make the payments it really doesn’t matter what you use the cards for. Fraud is extremely difficult to prove to begin with, so imagine a credit card company trying to prove what you purchase is not related to your business. Its not going to happen. With a small business, to some degree, everything is business. Buy what you want, make your payments = no problems whatsoever.

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