With BusinessChoice Rewards Platinum and BusinessChoice Everyday Credit Cards, the Business, Principal 1 and Principal 2 (if there is a second principal)* are joint borrowers and each is responsible for any outstanding balance.
How to manage multiple credit limits
BusinessChoice Credit Cards have a Billing Account that records all transactions on all cards issued under the facility. Each Cardholders^ is allocated an individual credit limits, which when combined, must not exceed the Business Credit Limit (total credit limit of the facility). The total of all transactions for all cards should also not exceed the Business Credit Limit for the facility.
At the end of the statement cycle, the Closing Balance of each card is swept up into the Billing Account. If the Closing Balance of the Billing Account is paid in full, each cardholder’s balance returns to $0 (unless there’s a credit balance for a particular card account).
- If the outstanding Billing Account is not paid in full, the funds available to each cardholder is reduced
- The funds available is based on the cardholder's credit limit less their outstanding balance, or a proportion of whatever is left in the 'Billing Account', whichever is lower.
Paying your BusinessChoice credit card is not like paying your personal credit card. You'll need to pay the 'Billing Account' instead of paying your credit card.
Tips for principal account holders in managing credit limits
- Ensure adequate funds are available in the 'Billing Account' to cover any cardholders' spending requirements if the monthly balance is not paid in full.
- Update cardholders on how their credit limits may be reduced if the outstanding monthly balance is not paid in full by the due date. Remember, you can change cardholder limits at any time ($1,000 minimum).
Tips for cardholders in managing their credit limit
- Check the account balance regularly to reconcile spending and see if the available credit has been reduced
Things you should know
* Principal 1" means the person who applies for the BusinessChoice Cards on behalf of the Business and is identified as an applicant on the Application Form for the BusinessChoice Cards or any other person the Bank agrees in writing to be "Principal 1" from time to time.
* Principal 2" means the person, other than Principal 1 who applies for the BusinessChoice Cards on behalf of the Business and is identified on the Application Form for the BusinessChoice Cards (if any) or any other person the Bank agrees in writing to be "Principal 2" from time to time.
^ Cardholder" means anyone who has been issued a Card in accordance with this Agreement.