The theory of owning a small business used to be that you need to keep your business and personal finances separate.
This helps keep accounting accurate and allows the business itself to build it’s own credit history. With the recently enacted CARD act legislation, the benefits of business credit cards remain but with a few strong caveats.
Why the Changes?
The CARD Act was devised to offer more consumer protection for credit card holders. Because card companies began inflating interest rates, lowering grace periods, and essentially charging any amount of fee to turn a profit after record defaults, consumers had little protection and faced mounting debt daily. B