Credit cards are helpful for both personal consumers and small business owners. You have the option to use either a personal credit card or a small business credit card. However, there are benefits and drawbacks to each option. Here are the differences between personal and small business credit cards.

What’s the difference between personal and small business credit cards?

There are a few differences between personal and small business credit cards, which may be enough for you to determine which option is the better fit for you. You’ll find the following aspects often differ between small business and personal credit cards.

•    Accepted use 
     Consumer protection 
     Credit evaluation 
     Credit reporting
     ID needed to apply
     Perks and rewards

How are personal credit and business credit cards different?

For personal credit cards and business credit cards, there are four important differences for small business debit card users: 
1. Different Interest Rates and Fees

According to Wallethub, the average APRs for personal credit cards vary across credit scores as follows:

•    Excellent Credit: 13.13%
     Good Credit: 19.41%
     Fair Credit: 22.58%

Meanwhile, the average interest rate for a business credit card clocked in at 16.9%.

However, business credit cards often offer introductory 0% APR (Annual Percentage Rate or interest rate) for nine months to a year. This usually only applies to purchases—not balance transfers. Business cards that offer an introductory 0% APR often charge hefty balance transfer fees, which can add up.

Like business credit cards, some personal credit cards also offer introductory 0% APR terms. Unlike small business credit cards, the introductory APR period can last at least one year and sometimes longer. 
2. Different Perks

Personal credit cards and business credit cards also differ in the perks that each offers. While both types of cards offer perks, there are differences in how you can redeem them and the types of rewards the user can earn.

Business credit cards typically offer rewards for business-related activities, which include:  

•    Business entertainment
     Inventory
     Services
     Supplies
     Travel

These cardholders can earn airline miles, cashback, and points for their business purchases. If you’re a business credit cardholder, you can earn rewards for spending on advertising or shipping purchases.

Personal credit cards offer perks, but your personal purchases will earn you the rewards, unlike business credit cards. You can earn rewards based on your spending in categories such as:

•    Drugstores 
     Gas
     Groceries
     Other consumer spending purchases, such as entertainment or travel

Personal credit cards may offer rewards such as airline miles, cashback, and points.