Want a credit card for your individual and business needs?
If you are looking for a credit card that suits both your individual and business needs, then the first thing to do is understand the various types of credit cards being offered in the market today. Understand the pros and cons associated with the credit cards that you are considering for yourself, and then make an informed decision about a card that would be most suited for your needs.
Start-up or small business owners may not qualify for a business credit card…
If you have recently started your business at a small level, then chances are that you might not fulfill a financial institution’s eligibility criterion to apply for a business credit card. In such a scenario, a smart alternative for you would be to go for any of the personal credit cards offered by a leading bank operating in your area. Choosing a personal credit card can also help you keep your business and individual expenses separate while earning flexible rewards on your individual spending. Since there will be a range of options to choose from in this category, you can use Google to find the cards that are most beneficial for fulfilling your individual needs.
The benefits of choosing a personal credit card…
A personal credit card could prove quite beneficial in most cases because of a number of reasons, such as:
- Applying for a personal credit card only requires people to have a minimum credit score of 650+. So, if you haven’t had a previous history of credit cards or loans, going for a personal credit card could be a great option. It can also help you build your credit history for the future.
- Personal credit cards also offer its users certain protections under the Credit Card Act introduced in 2009. Business cards on the other hand offer no such protection to their users. With personal credit cards, you are given a 3-week window for payments. With business cards, the due date could change every month.
- With personal cards, you also get 45 days’ notice if the interest rate is going up. With business cards, these rates could go up overnight without any prior notice. The same thing applies to introductory rates too. With personal credit cards, these rates are required to be in place for at least six months from the date of introduction. With business credit cards however, these rates could disappear any moment.
- There is also no upper limit on the fee charged for business credit cards, which is not the case with personal credit cards. Moreover, if you get delayed with your due payments on your business credit card, it would reflect on your credit history. With a Personal Card however, you won’t have to worry as much about a late payment affecting your credit history.
Looking at some of the downsides of choosing a business credit card, it would be a wise idea to go for a personal credit card and avail the many benefits they offer in stark contrast to Business cards. Moreover, if you’re particularly interested in improving your credit score, then a personal credit card would be an ideal choice.