Should you use your Personal Credit Card for your Business Needs?
Personal Credit Cards are helpful for people across income groups. With high credit limits, a Credit Card can help you purchase the things you desire and pay back the money at a relaxed pace, without having to drill a hole in your pocket. Also, most Credit Cards offer high credit limits. But regardless of these limits, a Personal Credit Card is only suitable for your personal use and not for other kinds of expenses.
Self-employed individuals, small business owners, freelancers, etc., often find it confusing and challenging to draw a line between their personal and professional expenses. For the sake of ease, they end up using the same Credit Card for their personal as well as business’s needs. However, this may not be the ideal approach.
- It is never advised to use your Personal Credit Card for your business needs. Here’s why:
Know why a business credit card is advisable for Business Spends - A Personal Credit Card has a lower credit limit than a Business Credit Card - A Business Credit Card comes with a high limit to take care of business needs
A business can require massive amounts of funds for expensive machinery and equipment, office renovation, lease or rent, etc. These costs can pile up to a considerable amount that can be hard to cover with a single personal credit card. Hence a Business Credit Card is specifically designed to match the needs of a growing business. - A Personal Credit Card may not offer business-specific rewards and bonuses - A Business Credit Card offers rewards & benefits on both Business and Personal Spends
Every type of Credit Card is specially designed to offer you the best possible deals for your needs. For example, you can earn rewards on dining, shopping, groceries, etc., by using a Personal Credit Card. On the other hand, a Business Credit Card will offer you additional rewards like airline discounts, rewards on hotel bookings, business services like tax payments, airport lounge access, etc. These rewards can help your business save money on various heads.
What are the benefits of using a Business Credit Card?
A Business Credit Card like the HDFC Bank Business Credit Card can offer many benefits, such as:
- Extra savings on all essential business purchases like telecom, utility, government and tax payments
- Savings on fuel purchases
- Bonus savings on business purchases through the year
- Prepaid cards for employee expenses and payments
- CashBack on wholesale and business purchases via HDFC Bank Smartbuy
- Hotel and flight bookings for business travel with Smartbuy
To sum it up
Every type of Credit Card serves a unique purpose. Hence, it is important to only use a Credit Card for the reason it is made for. A Personal Credit Card can offer many useful features, CashBack offers, and rewards for your personal use. But it may not be the ideal option for your business’s needs. So, get yourself a Business Credit Card and simplify your finances.
HDFC Bank offers great business solutions that can help your business grow. Check them out and expand your business today!
*Terms and conditions apply. Credit Card approvals at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.
