Whatever happened to business not being personal? Despite the oft-quoted adage that hints at an almost church-and-state-like separation between the two, it seems that business is as personal as ever with the Credit CARD Act now dictating the tenor of personal finance.
This piece of reformatory legislation, which took effect in February 2010, not only cracked down on sketchy credit card company practices and revamped consumer rights, but also created an interesting new landscape for the roughly 80 percent of small businesses that use plastic as part of their financing strategy, according to the National Small Business Association.
Interestingly, the CARD Act actually personalized business by creating a forced distinction between personal and business credit cards. Despite the fact that all major credit card companies hold small business owners personally liable for business credit card use and relay information about said use to small business owners’ personal credit reports, legislators excluded so-called business credit cards from the law’s protections.