Small Business Credit Card: Personal vs Business Credit Card

As a business owner, it is usually a good idea to apply for either a personal credit card or a small business credit card to cover your company costs. While both can be used to purchase goods and services, a business credit card generally has more features than a personal credit card which enables the business to control how much is spent.

Small Business Credit Card vs Personal Credit Card

Here are some of the main differences between these two types of credit cards:

• While business credit cards are designed for business use, personal credit cards can be used by anyone.
• Business credit cards aren’t monitored and regulated as closely as personal credit cards are. Because of this, issuers typically provide fewer protections and charge higher interest rates than they would for personal financial products.
• Business credit cards have higher tax deductions on spending, with higher credit limits.
• Business credit cards often offer bonus rewards and perks such as Wi-Fi or office supplies which can be very beneficial for companies which already have to spend money on these utilities.
• While an individual would have to incur the debts of a personal credit card, small business credit card debts are the company’s liability.

Which type of credit card should you get?

If you are still unsure of which type of credit card is best for you or your business, consider factors such as business expenses and business credit. If your business has major expenses and if you are looking for a higher credit limit and rewards, then a small business credit card may be more suitable for you. However, if you are a sole proprietor with minimal overhead costs with no interest in business credit, then a personal credit card may be a better choice.

For more information on the different rates and reputations of the various personal and small business credit cards, use LikeMoney to easily make comparisons and find the best credit card for your needs.

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