Small business owners have access to two types of credit cards: personal and business. Is there really a difference between personal and business credit cards? Actually, yes. Read below for an illuminating list of differences between personal and business credit cards put together by Global Resources LLC consultants:

Business Credit Cards Come with Higher Credit Limits—Business and personal credit cards function technically the same way. However, business credit cards have a different set of finances associated with them. Mainly, these cards are designed to receive and send massive payments that come with doing business. Therefore, you can get steeper credit limits with business credit cards. Of course, higher credit limits also allow business owners to improve credit scores faster.

Business Credit Cards Affect Two Credit Scores—When you use a personal credit card, you can improve (or ruin) only one credit score, your personal one. However, when you use a business credit card, it affects not only the credit score of your business but the owner’s personal one as well. That’s all the more reason to use business credit cards responsibly.

Consumer Protection Only Covers Personal Credit Cards—The Credit Card Act of 2009 introduced new laws to protect consumers who use personal credit cards. Under these laws, consumers can expect certain disclosures, limits of fees the issuer can charge, and so on. It’s important to note that the same protections don’t apply to business credit cards.  For example, if you miss a payment on a business credit card, the card company can charge higher than average late fees on a business credit card. Though credit card companies may practice good faith lending, it’s important to understand that protections are not legally enforced.

The above points are the key differences between business and personal credit cards. These reasons illustrate why small business owners should not use personal credit cards for any business purposes. GR-US.com consultants can help small businesses, especially family-run companies, separate business and personal finances, and take advantage of business credit cards.