Credit cards have become an integral part of our lives. Credit cards allow you to spend a certain amount of money for a certain period of time, without borrowing from anyone else. But many people are always in doubt as to whether business credit cards or variable credit cards are better. Let's take a look at the advantages and disadvantages of the two types of cards.

What's a business credit card?

A business credit card is a credit card designed specifically for businesses. These cards work by using a revolving line of credit that is issued to your business. Business credit cards have features that are tailored to business needs, such as expense tracking, card restrictions, and higher credit limits.

What is a personal credit card?

As the name suggests, a personal credit card is a card issued in the name of an individual. It can be used for any personal expenses. Personal credit cards have benefits such as reward programs and cashback options.

What are the main differences between a business credit card and a personal credit card?

1. Liability

On a personal credit card, the person is liable for any debts that occur on the card. But in a business credit card, the liability is not to the individual, but to the business as a legal entity. This way, the credit history of the business card will not affect the credit score or CIBIL of the individual.

2.Credit reporting.

Only personal credit cards are reported on an individual's personal credit report. So if you use your personal credit card for business purposes and the payment is delayed, it can have a negative impact on your personal credit score.

3. Reward Categories

Business credit cards and personal credit cards often offer rewards in different categories. Business cards provide additional rewards for business expenses such as office supplies, travel expenses, and telecommunications. However, personal credit cards offer rewards for dining, entertainment, and groceries.

4. credit limit.

Business credit cards typically have a higher credit limit than personal credit cards. A higher credit limit is obtained because the business expenses will be larger than the individual expenses.

5. Reporting and Statement

Business credit cards provide detailed reporting and statements that help you track expenses and settle accounts, while personal credit cards may not provide as much detailed information.