When you are a small business you might overlook the idea of sticking to your business credit card for carrying out all business transactions and use your personal credit card for some business transactions. While the function of these credit cards are similar at the base line, there are great differences between the way transactions are charged. Some key factors to understand the functioning of your business credit card versus your personal credit cards are:

• The consumer protection laws for credit cards do not apply to businesses. A business’s annual percentage rate for your credit card could change with your spending portfolio and even be subject to a higher interest rate in some circumstances when you are not careful of your transactions. While there are some lenders who offer consumer protection for the businesses that use their credit cards, there are catch phrases that lenders have to remove all liability from their side.
• The credit score of your business is impacted by the management of your credit card both business and personal. For businesses owned by an individual owner, your personal financial status has an impact on your business credit rating and vice versa. Using the credit card responsible as well as keeping up with payments is essential to stay on top of the credit score rating and avoid any possible bad credits that could affect your financial status in the long run.
• The credit limits for a business credit card are very different from a personal credit card. In case of purchase where the transaction amount is high, then a business credit card would have the sufficient limit to fund that amount while a personal credit card would not even be within the required amount limit. Moreover, when a business transaction involves a higher amount and the transaction is carried out on the business credit card, then the overall credit score is not impacted largely.
• Every business credit card has its own set of business rewards associated with specific cards such as cash backs on utility bills, flying miles, bonus reward points for cash transfers, etc.