Chapter 8: Credit
Credit cards allow you to borrow funds up to a certain limit and repay them over time, usually with interest if not paid in full each month. Charge cards, on the other hand, require full payment of the balance each billing cycle and often come with no preset spending limit. While both offer spending flexibility and rewards, charge cards can be more stringent and may come with higher annual fees but no interest charges. A common example of a charge card is the Amex Gold Card.
Business credit cards are designed for company expenses and usually offer features like higher credit limits, expense tracking tools, and rewards tailored for business use (e.g., office supplies, travel). Personal credit cards are used for individual expenses. It's crucial not to mix business and personal charges, especially for accounting and tax purposes. Using a business credit card responsibly can also help establish business credit over time.