Are business credit cards personally guaranteed?

Most UK business credit cards are personally guaranteed: a director of the limited company signs a legal commitment to repay the card if the company can't. The iwoca Credit Card asks for one too. We checked eight UK issuers' own terms on 12 October 2026, so you can see who asks, who signs, and how to limit the risk.

Worth knowing: American Express changed its Business Gold Card for applications from 28 January 2026. It now 'operates under Company Liability supported by a business personal guarantee'. Guides that say Amex doesn't ask for one are out of date.

‍

Most UK business credit cards ask for a personal guarantee

Most do. Of the eight UK issuers we checked on 12 October 2026, four say a guarantee is needed, two say one may be needed or allow for one, and two don't mention one on their card pages.

Here's what each issuer's own wording says:

Checked on 12 October 2026. Terms change, so ask the issuer before you apply.

Issuers ask for a guarantee because a limited company is a separate legal entity and a business credit card is unsecured. GOV.UK says lenders are more likely to ask when a company is newly formed, has a limited trading history, or has a poor or no credit rating (Personal guarantees on GOV.UK).

‍

What a personal guarantee on a business credit card commits you to

You're agreeing to repay the company's card debt yourself if the company can't. Without a guarantee, a limited company's card debt is normally the company's, unless the card agreement makes you liable too.

When you sign a guarantee for a business credit card:

• You become personally liable for what the company owes on the card, if the company doesn't pay. The iwoca Credit Card page puts it this way: 'the guarantor becomes personally responsible for repaying any outstanding balance'.
• If more than one director signs, the guarantee is usually joint and several, meaning each of you can be asked for the full amount, not just a share.
• The guarantee usually stays in place until the debt is repaid or the issuer agrees to release you. Closing the company or resigning as a director doesn't necessarily end it.
• An unsecured guarantee doesn't put a charge on your home when you sign. If the issuer later gets a court judgment against you, it can apply for a charging order on property.

Read the card agreement as well as the guarantee. Some cards make the main cardholder liable alongside the company even without a separate guarantee. Amex's older Business Charge Cards work this way.

For the detail on caps, time limits, and how a guarantee ends, see our guide to personal guarantees.

‍

How many directors have to sign?

It depends on the provider. Some ask for a guarantee from one director and others from every director. Some also limit who can apply. Santander's business credit card, for example, is only for companies with no more than two directors, who must own the business entirely.

If your company has more than one director, ask the provider whose guarantee they need before you apply.

For the iwoca Credit Card, we ask for a personal guarantee when you apply.

‍

Can you get a business credit card without a personal guarantee?

It's possible, but uncommon for small limited companies. The realistic routes are a corporate card on full company liability, which issuers design for larger businesses, a prepaid or expense card that doesn't lend, or a stronger company credit file over time.

Your options, and their trade-offs:

• A corporate card on full company liability. Amex's corporate card terms (dated December 2024) offer 'Full Corporate Liability', where only the company is liable. They also offer 'Combined Liability' and 'Individual Liability', which put the cardholder on the hook. Amex says corporate credit cards are 'designed for large, established businesses with large annual revenues' (Amex business and corporate card comparison).
• A charge card. Paying in full each month doesn't remove personal liability. Amex's newer Business Gold Card has a guarantee, and its older charge cards made you jointly liable.
• A prepaid or expense card. These spend money the company has already loaded, so there's no credit to guarantee. The trade-off is that they don't help with cash flow.
• A guarantee you can live with. If you can't avoid one, ask for a cap or a lower credit limit. Issuers don't have to agree, but it's worth asking before you sign.
• A stronger company credit file. The longer the company borrows and repays on time in its own name, the better placed it is to borrow on its own record. Credit Compass, our free tool, shows your company's Equifax business credit score, plus four more scores, the key factors affecting them, and areas to improve.

A new company with little trading history is the least likely to get a card without a guarantee.

‍

{{business-credit-cards-blog-cta="/components"}}

‍

What happens if the company can't pay the card

The issuer can ask you to pay what the company owes under the guarantee. If you can't pay or agree a plan, it can take you to court, and only after a court judgment can it enforce against you.

If you know the company will miss a payment, talk to the issuer early and ask about a repayment plan.

If the debt stays unpaid, the usual steps are:

1. The company misses payments. The card agreement sets out what counts as a default.
2. The issuer demands payment from you. A guarantee usually lets it ask you without first going after the company.
3. A court claim and judgment. If you don't pay, the issuer can take you to court. A county court judgment stays on the public register for six years, unless you pay in full within one month.
4. Enforcement. After a judgment, the issuer can ask the court to send bailiffs, take money from your wages (an attachment of earnings order), freeze money in your bank account (a third-party debt order), or put a charge on your property (a charging order). See Enforce a judgment on GOV.UK.

A separate route is a statutory demand, which gives you 21 days to pay or reach an agreement before the issuer can apply to make you bankrupt (Statutory demands on GOV.UK).

If the company is struggling with debt, you can get free, confidential advice from Business Debtline.

‍

Check these before you sign

Read exactly what you're guaranteeing, then set up the card so the company can always repay it.

Before you sign, check:

• Whether the guarantee has a cap, or covers everything the company owes the issuer.
• Whether interest, fees, and legal costs come on top.
• Who else is signing, and whether it's joint and several.
• What counts as a default, and what the issuer does before calling in the guarantee.
• Whether you could repay the full limit from your own savings if you had to.

Once you have the card:

• Set spending limits for each cardholder and keep business spending separate from personal spending.
• Pay the statement balance in full by the due date when you can. On the iwoca Credit Card, that means you pay no interest.
• Review statements each month, so a problem shows up before a payment is missed.

‍

Business credit card personal guarantee FAQs

Quick answers on credit scores, resigning, cardholders, and whether a guarantee is binding.

‍

Does a personal guarantee affect my credit score?

Signing a personal guarantee doesn't affect your credit score. It can if the guarantee is called in and you don't pay, or a court judgment is made against you.

If the business falls behind on a guaranteed card, it can affect your personal credit score. Applying for the iwoca Credit Card runs a soft search on your personal credit file, so it won't affect your score.

‍

Does my guarantee end if I resign as a director?

No. A guarantee usually stays in place after you resign, unless the issuer agrees in writing to release you.

‍

Are employees with company cards personally liable?

It depends on the card agreement. Some make additional cardholders liable for their own spending alongside the company and the main cardholder.

For example, Amex says the main cardholder, the business, and the supplementary cardholder 'will be jointly and severally liable for all charges made by a Supplementary Cardholder' (Amex business rewards).

‍

Is a personal guarantee legally binding?

Yes. GOV.UK describes it as 'a legally binding agreement that the director will personally repay a debt if the company fails to meet its financial obligations in relation to that debt'.