Your Guide to Choosing Personal vs. Business Credit Cards

When it comes to building your business, you need a reliable credit card solution. Business owners have an additional choice when deciding whether to use their own personal cards or rather apply for specific business credit cards. With a variety of options, you can find a card that matches your lifestyle with rewards and interest-rate plans tailored to you!

What is a Business Credit Card? 

Business credit cards are designed to help you cover your business expenses quickly and easily, all while establishing a solid credit history for your venture. Business credit cards usually have higher spending limits than regular consumer cards, so they’re better equipped to handle larger expenditures. Business credit cards also typically provide additional features like rewards programs and flexible payment options that can help you save money and time.

What is a Personal Credit Card?

Personal Credit Cards offer consumers convenient access to their finances. With Personal Credit Cards from American Express Business, you can manage your payments, earn rewards, and access special offers – all with the convenience of online transactions. Choose from a variety of card types that match your lifestyle, including no-annual-fee cards, cashback cards, and travel rewards cards.

What are the Differences Between Personal Credit Cards and Business Credit Cards?

1. Rewards programs –  Business credit cards often have rewards programs tailored to businesses, such as cashback on office supplies and travel discounts – and spending limits. Business Credit Cards typically have higher spending limits than personal cards, making them better suited for larger business expenses. Business Credit Cards also usually have a range of additional features like flexible payment options and special offers that can help you save
2. Spending limits – Business Credit Cards typically offer higher spending limits, and specialized reward structures for businesses and usually require an annual fee as well. Personal Credit Cards are designed for personal use with a variety of rewards available depending on the card type selected. Business credit cards also require a business tax ID number to apply
3. Interest rate plans –  Business Credit Cards often have different interest rate plans than personal credit cards, depending on the credit history of your business. Business credit card rates can vary based on the type of account and the issuer. Personal Credit Cards usually offer a variety of interest-rate plans to fit individual needs. These differences make Business Credit Cards and Personal Credit Cards.

4. Intend use –  Business Credit Cards are usually intended for use in the purchase of business-related items, while Personal Credit Cards can be used for both personal and business purchases. Business Credit Cards typically have higher spending limits than personal cards, so they’re better equipped to handle larger expenditures. Business credit cards also typically provide additional features like rewards programs and flexible payment options.

Different Credit Card Options To Consider In The UK 

1. Barclaycard: A credit card with a range of benefits including cashback, air miles, and access to exclusive offers.
2. American Express: A card offering exclusive rewards and discounts on shopping, dining, and travel. It also comes with additional perks such as complimentary event tickets and airport lounge access.
3. Santander All-in-One Credit Card: An all-in-one credit card with great cashback and shopping offers, as well as free purchase protection and online fraud protection for added security.
4. MBNA Balance Transfer Credit Card: This benefit-packed balance transfer credit card allows a 0% interest rate for up to 41 months plus the ability to track your spending using their smartphone app or the web portal MyCardStatement.

Conclusion

Business Credit Cards and Personal Credit Cards offer a range of benefits that can help you manage your finances and save money. Personal Credit Cards usually offer a variety of rewards depending on the card type selected and are designed for personal use. The key is to understand the differences between Business Credit Cards and Personal Credit Cards in order to make an informed decision that best fits your needs.

This article is for informational purposes only and should not be considered financial advice. Before applying for a Business Credit Card or Personal Credit Card from American Express Business, please consult with your financial advisor.

References

1. “Eight differences between personal and business credit cards” Retrieved February 6, 2023 from: https://www.chase.com/personal/credit-cards/education/basics/personal-vs-business-credit-cards#:~:text=Business%20credit%20cards%20typically%20have,on%20a%20personal%20card%20alone
2. “10 Top Different types of Credit Cards”  Retrieved February 6, 2023 from: https://www.bankrate.com/finance/credit-cards/different-types-of-credit-cards/
3. “6 Major Differences Between Business and Personal Credit Cards” Retrieved February 6, 2023 from: https://www.nerdwallet.com/article/credit-cards/major-differences-business-credit-cards-personal-credit-cards
4. “Personal credit card vs. business credit”  Retrieved February 6, 2023 from: https://www.capitalone.com/learn-grow/business-resources/personal-vs-business-credit/