A business credit card is a special card that helps to cover the business expenses for an business owner or enterprenuer, this card differs from the personal credit card. The business credit card being covering the business expenses also avails business-specific benefits. This card helps in a tax deduction and works similar to any credit card like purchasing goods etc. These cards are issued only to the companies, not for the individuals.
Comparison between Business Credit Cards and Personal Credit Cards:
|Business Credit Card||Personal Credit Cards|
|It is issued for the company||It is issued to any individual|
|Cash withdrawals from ATM's not allowed||Cash withdrawal allowed from ATM's|
|It has higher credit limits||Comparatively low credit limit than business cards|
What are the types of Business Credit Cards?
Credit Card This is the business card just like the personal credit cards, that it offers flexibility to pay off the debt in months, as sometimes it is not possible to pay off full in each month, in such cases, these types of cards are the good as they offer flexibility to clear the debt with a predetermined rate of interest.
Charge Cards These cards on the other hand offer short-term loan and these must be paid off fully each month to avoid the huge annual fee. These cards are best for those companies that are financially stable and can clear off debt in full every month.
What are the Guidelines to choose the best Business Credit Card?
Compare with different cards and choose the best card that suits you (credit card or charge card). Check about the features like the APR rates, and other details. Once you have compared check whether your business is small or large, if you are starting with a small business look for the card that suits you do not go for the temptations and set the spending limits.
What are the advantages of Business Cards?
- Business cards easiest tax purposes
- Help to keep track of business expenditures
- Improves business credit rating
- Has higher credit limit
Business cards are specially made for business purposes, consumers can also use the personal credit card for their business expenses, but when compared, business cards come with higher rewards, benefits, and convenience as these are cards are generated by keeping business owners mind, so for business these cards are the best option than personal credit cards.