Advertiser Disclosure

After The CARD Act Should Your Business Switch to Personal Cards?

Sept. 9, 2010
Business Credit Cards, Credit Cards
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Aw nerds! Looks like this page may be out of date. Head over to our Business Credit Cards page for updated info.

I recently wrote an article for the Forbes Moneybuilder blog about so-called “professional” credit cards. According to Marketwatch and the WSJ, credit card issuers have been sending business credit card solicitations to consumers who normally wouldn’t qualify, since these cards don’t fall under the consumer protections of the CARD Act.

But where everyone else sees fraud and deceit, I see opportunity. If card companies have relaxed the standards on some business credit cards, that means that savvy credit card users may be able to take advantage of business credit cards with exceptional rewards, like the Ink Cash from Chase, or the Costco TrueEarnings for Business.

There’s another side to the debate, however.  If you’re a small business owner that uses credit cards for financing or to better manage cash flow, then you’re probably a bit more concerned about the interest rates and fees.  And in this case, the CARD Act should save you a lot of money, except that it doesn’t apply to business credit cards.  So maybe it’s time you consider switching to a personal credit card to use for your business expenses.

Personal credit cards for your business

If your business requires you to carry a balance, you want a card with a low ongoing APR. Another benefit of using a personal card here is that business cards usually have higher APRs anyway.