Intelligence

Charge Cards vs. Credit Cards: What’s Better for Business Owners?

A credit card or a charge card (like the Amex Plum card) can come in handy when you’re starting or growing a business. But, these two credit options work very differently. For this story, I’m seeking insight from credit card experts and business owners on the following: 1. In a nutshell, what’s the biggest difference between a charge card and a credit card? 2. What are the main benefits of using a charge card in your business? For example, better rewards, higher spending limits? What are the drawbacks, if any? 3. Can any business qualify for a charge card, or are these specific to certain kinds of businesses? Is there a typical business type that’s better suited to charge cards vs. credit cards? 4. What are the main benefits/drawbacks of business credit cards? Who are business credit cards better suited to? 5. How does either
type of card affect your credit score? Why is that important for business owners to know? 6. How can business owners evaluate which type of card is the best fit for their needs?