Now that the new federal laws governing rate hikes, notifications, and fees on credit cards are about to take effect, many small business owners have begun to ponder a move from their current business card to a personal one, in hopes of limiting their financial downside. After all, the new guidelines only extend that far, making the resulting predictability pretty attractive and fiscally responsible.
Seems like a logical move, right?
Well…maybe not. Turns out that bumping everything onto a personal card could put your credit rating in a precarious position (read: an even more precarious position than is already the case if you’re a sole proprietor).
An article that ran on the Wall Street Journal website sums the pros and cons up well. Take a moment and take a peek. You’ll be glad you did.
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I never put my expenses on a credit card anymore… I have spent the last year trying to run our business strickly on a cash basis. Plus, at the end of the day…I don’t owe any one!
Thanks
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