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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.

Also, the customer query resolution and support services are

much better with the small business credit cards than with the

personal credit cards. The credit card companies always give

preferential treatment to the small business credit card

customers. This is owing to the simple fact that small business

owners are much bigger consumers of such services than the

personal credit cards. Obviously, the needs of an enterprise are

expected to be more than those of an individual. Moreover, if

the business grows, it might create more customers for the

credit card company (e.g. in the form of corporate credit cards).

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There are times when one requires quick money for a short period

of time. This can be due to some immediate purchase requirements

which you are ultimately going to invoice your client to or some

other unplanned/emergency expenses. In most of the cases you

have a visibility of a month or so in which you are expecting

your invoices to clear. Having the small business credit card

can be more beneficial in such cases (as compared to a personal

credit card).

Moreover, as with personal credit cards, the small business

credit cards can also help in building your business' credit

rating. So when it comes to getting a loan for business

expansion, you at least have something to show for the credit

rating.

About the author:

Rudy Hadisentosa: CCN.com is a free online credit cards review

and application website. We offer credit cards selection from

visa,master cards, discover, american express and many others.

We have quite some categories and hundreds of credit cards

selection to fit your need. Apply for a credit card at CCN.com.