Picking up the right small business credit card is similar to choosing the right personal credit card.

These cards are essential whether you are new in business or you already have a business.

  • 22% of business owners believe that these cards are at the top when you go for small business funds.

It is seen that personal and business credit cards are similar, but there is a slight difference between them, so you should be careful when you apply for them.

SIMILARITY between personal and business credit cards

The way we used:

Both are used for purchasing online or in shops/ stores. The security features are also the same as expiration date, signatures, Security codes, etc.

Depend upon on personal data:

The way you maintain your finances as a person will say a lot about how you may run an organization.

If you’ve got loads of debt, failed to form payments on time, and filed for bankruptcy within the past, then there is an issue with opening any card.

Personal credit scores are needed to be approved:

The business credit cards depended upon the personal credit score. But you don’t have to worry if you have a bad or do not have any personal score. The main problem is that it takes too much time.

DIFFERENCES between personal and business credit cards

Which credit did bureaus get your information?

When you apply for personal credit cards, your history is reported to one, but when you apply for business cards, it can’t be reported only in case of late payment.

Every issuer has its policy for positive history or negative comments. So it means shopping for an issuer is as important as a card.

If you have a limited credit history, should pay on time, and have business cards reported to personal cards, the card helps you create a positive impression on your credit.

If you don’t need a positive account on your credit card, you want an issuer only to report if your payment is late. In this way, you benefit from new credit lines for business purposes.

If you are going to open a new business credit to fund your business, you may choose one that can help you build business credit.

Credit limit:

Small business credit cards have more power of spending than personal credit cards.

Revenue that’s bigger than your income could result in a higher limit than you would get on a personal card.

A higher limit could be especially useful if your business has steep operating costs.

Bonus categories:

Both credit cards have bonus categories such as traveling and spending

Usually, business credit cards offer bonuses on phone bills, online commercials.

Personal cards offer bonuses on groceries or drugstores.

How to choose a business credit card?

First, you should check all the business cards in your area to see their basic characteristics.

Then you see your business expenses for at least the past 6 months to see what benefits you need from these credit cards.

After that, you check your business lifestyle

Everything has pons and cons, so before applying, you should check the pons and cons of paying an annual fee

After that, you have few options left …. So, according to your choice, you apply for the best business credit cards.

Advantages of business credit cards:

It is very convenient and easy to carry.

It reduces too much cash flow

Many credit cards offer purchase protection.

It is separate from personal expenses.

You get rewards when you spend.

Disadvantages of business credit cards:

It pays high-interest rates

It damages the credit score.

Many frauds target credit cards.

In these cards, many charges are quickly added.


Frequently asked question

How to choose the right credit card?

The main thing you focus on buying a card is cost, rewards, features, and benefits.

How to apply for small business credit cards?

The process is similar to applying for a personal credit card. You will provide personal information about yourself and your business.

What startups do you take when you choose a credit card?

o   How much working capital do you need?

o   If your business is in partnership, whose name will be written on the application?

o   What impacts are given on personal and business credit scores?

How do business credit cards work?

It will give you a credit limit based on your card score, which establishes the maximum limit that can be outstanding on the card.

Can you have multiple business credit cards?

If you operate a small business, then 1 or 3 small business credit cards should must have. You also have 2 credit cards from the same bank.

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