Credit Cards for business

[SafaaMassage]

Have been having a look at business credit cards and all the rates seem rather uncompetitive compared to personal ones and most seem to include a fee.

Does anyone know if you can use a credit card thats designed as a personal card for business purposes and take advantage of the better deals?

 

[Canary Dwarf]

Don't see why not. I use a separate personal card exclusively for business, although I suspect you would be 'personally' liable for the debt.

 

[Scottish Business Owner]

In my experience business credit cards are really just for ease of use. The interest rate is typically irrelevant because the bank expects to take the full balance back the following month. Most banks offer debit cards these days so why would you want a business credit card?

 

[Mike Lewis]

I've been using a "corporate" credit card for about ten years. It's true that it's much more expensive than the personal version. Actually, it's not really a credit card. It's a charge card (that is, you have to pay the full amount each month).

The reason I've kept it is that it offers free travel insurance. That's fully comprehensive cover, not just the fairly simple accident insurance that some cards do. As a very frequent visitor to the US, it's saved me thousands of pounds over the years.

But if you don't need that kind of feature, I can't see any advantage. You might as well go for a personal card. It's not as if your suppliers will know the difference, or care.

Mike

 

[SafaaMassage]

Thanks guys.

 

[Gouldie0]

Don't see why not. I use a separate personal card exclusively for business, although I suspect you would be 'personally' liable for the debt.

As a sole trader you're still liable for the debt, there is no difference between you and the business. The bank would still need repaying as in their eyes you're a single entity.

Agree with the above, these business card balances are cleared each month and are more or less a charge card as Mike said. So realistically you need to have enough in the bank each month to cover your expense, not sure if this is quite feasible at the beginning for some businesses.

I would start off using a personal card, keeping all receipts etc of course and statements highlighted with business expenditure. If then in future you feel you have to take on a business credit card to develop your business then so be it.

Kind Regards

Neil

 

[MarkB]

I notice that new regulations stop businesses from charging extra when paying with a credit card:-

https://www.moneysavingexpert.com/n...-users-still-being-charged-despite-law-change

The above article claims many are still charging extra - however, if a business is charged extra by a credit card company, is it not fair that they can pass these charges on. Customers can still pay via debit card without any charges - seems a little unfair to me. Any views?

 

[Employer]

If you are abe to pay all of your expenditure back each month, and this is only a cash flow issue, then fine. However, the interest can be huge on business credit cards if you dont pay them off each month. If you are struggling for finance/cash flow there are much cheaper ways of securing it.

 

[EvolutionBlogger]

Have been having a look at business credit cards and all the rates seem rather uncompetitive compared to personal ones and most seem to include a fee.

Does anyone know if you can use a credit card thats designed as a personal card for business purposes and take advantage of the better deals?

I don't understand the appeal of business credit cards either. I have a personal card which is exclusively for business expenses

 

[Business Upside]

There are rewards for using credit cards. The rewards are points, miles and cashback. The credit card also offer great facility for the card holders. Using credit cards in the business can give great advantages.

You can read our article: Best Reward Credit Cards Of 2021

 

[WilbP]

I prefer crypto cards

 

[Aaron Reed]

crypto is way better now