Differences between business and individual credit cards

Although most credit cards look the same on the surface the differences between business and individual credit cards run deep. Business credit cards generally charge many fees but have more services available to card holders. Business credit cards are in the name of a business with multiple cards obtainable for employees. In general most business credit cards do not have a preset spending limit although that can vary depending on the size and credit rating of the business or individual applying for the card. The differences between business and individual credit cards make sense only if you have the need for keeping your business and personal spending separate. It is a good way of keeping track of your company’s expenses and controlling the budget. With business credit cards an employer can preset a client’s spending limit. The drawback of having a business credit card is that interest in charged from the moment a purchase is paid until the balance is paid off. Unless you are able to pay this balance off then the interest charges can become astronomical. Individual credit cards have much more flexible terms than business credit cards but do not offer the same protections. With individual credit cards there is no way to separate business expenses from personal expenses and things can get mixed up very quickly. In the end, when deciding what is the right card for you it is always important to take into consideration your goals, what you will be using the card for and your personality. There are card suited to every need and every lifestyle. Above all, once you have settled on a credit card, make sure to read the fine print. Most of the great offers are stated in big, bold letters but then the important terms are always on the back in fine print. As long as you are aware of what you are signing on for, then there should be no problems.