When it comes to business credit card vs. personal credit card, you might want to think about getting a business credit card. It does not matter if you own a small business or a start-up but you should look for ways to keep professional and personal purchases separate.

A vast majority of business credit cards offer comparable, if not more rewards as against personal credit cards, allowing you to accrue more points, miles, or cash back on your business-related purchases.

In addition to the extra financial flexibility that having a company credit card can give, these business products generally offer additional perks tailored specifically to the needs of businesses.

Here are 7 reasons that will make it easy for you to take your pick in the confusing battle of business credit cards vs. personal credit cards.

1. Business Relevant Welcome Rewards

Compared to personal credit cards, several business credit cards offer even more generous welcome bonuses. They are, therefore, excellent as alternatives for personal cards as well as fascinating options if you already have a personal credit card associated with your primary loyalty program and are seeking for a second one to accrue additional points or miles.

To ensure that your business credit card is consistently offering better terms than any comparable personal credit card, dig deeper into the history of its welcome bonuses before submitting any applications. Remember, it pays to find out if the business credit card of your choice fits your requirement.

Some business credit cards provide low or 0% APR on purchases or balance transfers for a certain amount of time after account opening in addition to bonus points or miles.
Think carefully before taking this path because carrying balances and making late payments might harm your credit score. However, taking advantage of such a chance can provide companies the breathing room they need to delay some payments while they wait for their cash flow to start.

2. More Reward Points

By offering better reward points in many areas, business credit cards significantly outperform personal credit cards. If you frequently spend a lot in any or all of these areas – Travelling, Shipping Purchases, Internet Bills, Telephone Bills, Social Media Ad Campaigns, etc., but not so much on dining and entertainment, your earnings could be significantly more with the company credit card than with the personal credit card.

3. Better Benefits Related to Business

Since small businesses and start-ups are the ideal target market for business credit cards, many of them provide a vast array of employee benefits to help these businesses streamline and consolidate their employee spending.

Some business cards you the option to add employee cards without cost, allowing you to accelerate the earning of rewards from employee spending. Others offer additional purchase protection with higher value limits that personal credit cards typically don’t.

4. Better Credit Limits

Naturally, this depends largely on your financial situation and credit history, but banks are more likely to issue business credit cards with higher credit limits than personal credit cards. They do so since they are aware that sometimes businesses need greater financial flexibility when making acquisitions or during expansion.

Even a tiny business may have a month where it must spend significantly more than usual on equipment that was bought or rented, or on short-term requirements like higher shipping costs. These firms could just need a lifeline if they had a few extra thousands of cash at their disposal. Hence, banks are more likely to offer higher credit limits on business credit cards vs. personal credit cards.

5. Improve Your Personal Credit Score by Segregating Your Business and Personal Expense

One of the finest reasons to have a business credit card is to start separating your business and personal purchases. Keeping your business and personal expenses separate will make taxation and other financial obligations much simpler for you. But it also typically implies that your personal and professional credit reports are kept separate.

Over time, this may even improve your personal credit rating too. Your credit utilization ratio, one of the most crucial elements in evaluating your credit score, would decrease if you use your personal cards less frequently. As a result, your personal credit score may increase as it appears that you are utilizing less of your available credit.

But don't act irresponsibly. Remember how when applying for a business credit card, you typically had to provide your personal PAN? That means your personal credit is still connected to your business account, and if your company defaults, you will ultimately be liable for any purchases you make with these cards.

6. Build Solid Credit History for Your Business

Getting a business credit card vs. personal credit card could perhaps be the first step towards building a solid credit history for your company. A solid business credit score can help you in raising venture capital and negotiate future payment terms with vendors.

Banks will look at your business's credit report and history in the future when you might need to take out a loan or mortgage for your business. A good business credit score will help you achieve better interest rates.

7. More Opportunities with Additional Cards

Most banks place a cap on the number of personal credit cards you can either apply for or keep active at any given moment. Banks are likely to reject your subsequent applications if you apply for five or more personal credit cards from any banks in a 24-month period.

However, such limits do not often apply to business credit cards. Therefore, opening them shouldn't prevent you from applying for personal credit cards in the future.
Some business cards give you the option to add additional employee cards without any additional fees, enabling you to accumulate more rewards.

In The End!

There are several great benefits of getting a business credit card vs. personal credit card. By getting a business credit card, you'll be able to segregate your personal and professional expenses and establish a credit history for your company. Additionally, business credit cards also offer tremendous rewards opportunities, and a variety of bonuses across all spending categories to help you save time and money.