What is the difference business credit card vs.... - Other Questions


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Credit Card Applications » Questions » User Questions » Other » What is the difference business credit card vs. personal credit card?

What is the difference business credit card vs. personal credit card?

Answered on | Updated on August 22nd, 2010
The content is accurate at the time of publication and is subject to change.

Most people have multiple credit cards for multiple uses. Some may have a fixed card for doing all their transactions. Irrespective of their needs and requirements people often carry more than three or four cards. It has turned into a status symbol and also a tool that makes transactions and payments easier especially when it comes to bulk purchases. If you have a business credit card rather than personal credit card, it is useful for tracking bulk purchases and to have a better idea of the transactions occurring.

There are no limitations or criterion for people to get a business credit card. It worked like any other card and in place of the business name the applicant should enter their own and the tax ID would be their social escort number. This will be considered as a sole proprietorship and comes with a lot of advantages. The same company may offer both personal credit cards and business credit cards but you will see clear differences in the offer and conditions.

Firstly you can get a larger credit limit on your business credit card than on your personal credit card. Credit card companies know that businesses will of course need to spend more and make larger purchases and hence will provide a more extensive credit limit. A higher credit limit means a better credit score, so there is more than one direct advantage to this.

Another factor is that there will be more attractive bonuses and rewards available on a business credit card as opposed to a personal credit card. Businesses will spend more every month and so credit card companies will offer more attractive rewards so that their card will be preferred over another as there is a lot of competition to rope in customers. There will be attractive cash back and reward offers along with even a sign up bonus for many business credit cards in the market.

There are also advantages like a 0% on balance transfer and this will work for many business people as they can use the money for the start up and then pay back later. Since you are applying for a card under sole proprietorship and getting all these advantages, it will make sense to prefer it over a personal credit card. But there may be requirements to spend at least a certain amount in order to keep the card in case of some banks.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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