Business Credit Card Reviews

Personal Vs Small Business Credit Card

Credit cards seem to have become a fad today. Almost everyone has a personal credit card today (a lot of people have more than one credit cards). Though most of the people use personal credit cards for what they are really meant for, some are unable to decide on when to use which type of credit card.

So is there a difference in terms of what credit card – Personal or business, you use for what transactions?

The answer very clearly is ‘Yes’.

Some people use their personal credit card for paying the bills of the small business they run. However, this is not what you should be doing. Personal credit cards are meant for just personal expenses and the business credit cards just for business expenses. So unless you want to utterly confuse yourself and spend hours together on sorting out business and personal expenses, you should not create this confusion in the first place. This confusion is very easy to avoid and just requires some discipline on your part. Just use your small business credit card for whatever spends you do for your business and the personal credit card for the personal expenses.

If you feel that getting the business expenses segregated is not much of a problem and you would rather use just your personal credit card, you need to re-consider using a small business credit card. This springs from the fact that the small business credit cards generally carry a lower APR as compared to the personal ones. So it makes more sense to make your business spends on your small business credit cards. Moreover, the small business credit cards also carry a reduced or no annual fee on them.

Read Full Article

Related Article:
Know the Advantages of Credit Cards for Small Business


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