There is much talk about credit cards today, as the credit card act of 2009 is officially up and running. Consumers will be seeing a much more detailed bill as well as many other stipulations for credit card companies. But with all this hype it is wise to remember, these new rules do not affect your business credit card.
Although these new regulations bring consumers much needed protection, it is leaving the business card holders wondering what is going to happen. Some are speculating a turn from business cards to personal cards. Gerri Detweiler, the co-author of Business Credit Success tells CNN her perspective on making the switch to personal cards for business owners, “Using personal cards is not ideal because it can affect your personal credit scores…think about what could happen to your credit score if your business went through a rough patch and you got behind on credit card payments.”
According to the National Small Business Association as of 2008, credit cards were the most common source of financing for small business owners. If your business needs to have a credit card, use it with care and always pay of the balance at the end of the month. We could see credit card companies being harsher to business card owners since they will have to ease up on personal credit cards that have acquired some debt.
If you have do make the switch to a personal card for your business, make sure to be extremely careful. Although there are great debt management programs to help people get out of debt, keep in mind your credit score. Your business shouldn’t affect your personal debt so mixing the two could be disastrous.
Simply being aware of the stipulations for the credit card act is helpful on a personal and business level. Consumers could be changing their spending habits so it is crucial to keep track of how your customers are spending in the next few months.
Shannon Suetos is a writer based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on purchasing decisions and a comparison service for everything from credit card processing to VoIP phone systems.
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