Depending on the types of purchases you make, and how often you do them a business card can be useful to have, even if you do not run one.
More similar than you might think
The biggest difference between the two cards is that the Act 2009 Credit Card does not concern business cards, but focuses on the personal consumption benefit card users. This means i The nterest rates can change frequently and without notice with a business card. This is a big disadvantage if you always pay back interest on your purchases. By law, personal cards have fees and interest rate ceilings.
For small business cards, you are more likely to earn rewards that are tailored to business purchases. For example, many small business cards give you cash back on office supplies and travel expenses. A handful of cards also come with registration bonus, but the annual cost could be higher; some cards have fees as high as $ 450, although as personal cards, they are sometimes waived the first year.
personal consumption and small business cards are similar in trying to qualify. When you apply for the card, the bank issuing the card will look at your credit score, sometimes three major credit bureaus - Equifax, Experian, TransUnion. In both cases, a hard inquiry will be on your credit history, which can temporarily lower your credit score. As for personal cards, most cards are loaned to a person, not the company, so that you can be held personally liable for the debt. Be aware that if you use a credit card for a small business.
A disadvantage, however, with the credit card companies is that many times the story of your account are not reported to the three major credit bureaus unless it is negative in nature, as a default. This means that if you are hoping to improve your credit score with a business card showing the responsible use of it, do not count on the same head that you get with a personal card.
The cards can be used for personal expenses
If you spend much of your credit card each month, you might consider getting a business card. Application thereof is the same as if it were a personal credit card. Small business cards are good for accumulating points like cash back and travel points, making business-oriented purchases such as in an office supply store. It is important to remember, however, that a business card is probably not ideal if you do not do much shopping because it is more difficult to reach the introductory bonus or a reward for spending a certain amount in a designated period of time threshold. Some business cards need to spend $ 5,000 in three months to earn the introductory bonus, which is usually higher than most personal cards.
The best overall card business
The Chase Ink Cash Business Card is one of the most versatile credit cards on the market. Not only is it helpful for businesses, but there is also a great card for those who intend to spend a lot each month on their card for personal use. There is no annual fee, and you can win $ 200 cash back bonus points after spending $ 3,000 within the first three months of opening the card. You will get 5% cash back on office supply purchases, and charge cable, Internet and telecommunications. You also get 2% cash back on meals and gas and 1% cash back on all other purchases. To top it all, you only need "good" credit to qualify, instead of "excellent" more frequent credit generally required for business cards.
Visit our credit card companies to critics compare features and rewards that each offers.