What is the difference between personal credit cards and business credit cards?

kira_akira

I have a few personal credit cards and I want to consolidate them. I also am self-employed, but I dont' have a business credit card; although I get LOTS of ads for them in the mail. I've always wondered, what is the difference? Are there different rules or fees? Can you only use them for business purchases? Do you have to spend a certain amount to keep them?

Any advice appreciated...

chattychappy

No great difference - fewer introductory offers. As a self-employed person you would be personally liable for repayment even if your business closed. Some insist on a DD for repayment. Some offer an annual summary to help with expenses etc., (I had one for a while, it was useless). You might get a higher limit. You can use it for any purchases - business or non-business.

Things might have changed - it was a few years ago I had one.

But I would steer clear. If you want to separate expenditure you could just have two personal cards.

Many of the benefits that consumers get - eg distance selling regs, Sale of Goods Act, UCTA 1977, UTCCR 1999 etc, apply in a more restricted form to trade purchases or maybe not at all. The type of credit card you use shouldn't be conclusive evidence one way or the other, but it could be increased hassle if you tried to enforce your right on the basis you are acting as a consumer. (NB in some contexts you are a consumer even if you a buying stuff for your business.)

diggindeep

I have two HSBC business cards as I run a couple of small businesses.
Both cards have to be paid in full at the end of each month from the business current accounts.
An itemised statement is sent approximately 5 days before HSBC debit the account.
The advantages of the business card are that you can get up to 5 weeks free credit for purchases i.e. from the cut off date of one months spending to the date which the account is debited the following month. It also saves costs and time with writing individual cheques for items as thay can all be included in one payment for one bank debit charge of a few pence.
Cash withdrawals however are subject to a fee of 3%.

JohalaReewi

I have found that purchases made on a business card could be deemed as non-consumer and so not benefit from the distance selling regs, consumer credit act (section 75), and the like.