Advantages Of Using Business Credit Card Over Personal Credit Card For Business Transactions
When you are a small business you might overlook the idea of sticking to your business credit card for carrying out all business transactions and use your personal credit card for some business transactions. While the function of these credit cards are similar at the base line, there are great differences between the way transactions are charged. Some key factors to understand the functioning of your business credit card versus your personal credit cards are:
- The consumer protection laws for credit cards do not apply to businesses. A business’s annual percentage rate for your credit card could change with your spending portfolio and even be subject to a higher interest rate in some circumstances when you are not careful of your transactions.
While there are some lenders who offer consumer protection for the businesses that use their credit cards, there are catch phrases that lenders have to remove all liability from their side. The credit score of your business is impacted by the management of your credit card both business and personal. For businesses owned by an individual owner, your personal financial status has an impact on your business credit rating and vice versa. Using the credit card responsible as well as keeping up with payments is essential to stay on top of the credit score rating and avoid any possible bad credits that could affect your financial status in the long run.
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