You may not have used business credit cards before but here are some solid reasons as to why you should use one.
They don’t rely on your personal credit score
Usually, when applying for the business credit cards, you only get 2 to 5 pints hit on personal score of yours because it’s used by the bank for assessment of your creditworthiness. Still they are personally guaranteed. Once you start using it, this credit line is treated separately from your personal one and, therefore, utilization as well as other actors should not have any impact on the personal credit rating of yours.
Expenses are kept separate
Everyone of us usually have credit cards on which we put all our non-personal or business expenses, whether we own a business or not. It is important that our personal expenses are kept separate from the business ones, particularly when tax season comes closer. When you have business credit card, you can track the expenses in an easy way and you will have to pay less when it comes to accounting fees.
More options available
When you use business credit cards, you have the option of getting different cards if you have healthy credit. If you have maxed out your bonuses which you could get through your personal credit cards from one specific bank, getting business versions for the same cards can help you let those bonuses continue to come in.
Establishing credit history for your business
If the business you run takes off after some time of you getting your credit card and you have to apply for some loans to make purchases, any big expenses, or real estate, you will be able to get better rates if your credit line is established well.
Overall credit available to you is expanded
If you’re ambitious towards your business growth then the growth might get stymied if you use personal credit cards to fulfil your business obligations. Why? Simply, because credit available will be less. When you have separate cards for your business and personal needs, your potential credit limit increases overall for both purposes.
Saves time with technology
Most recordkeeping work is taken care of if advanced technology is offered by your business credit card. Your expense budget is managed easily and you don’t have to do much to see where and how much you’re spending.
Increased spending power
These cards usually have higher credit lines. However, you should keep it in mind that you may be required for paying the bill fully every month otherwise you’ll end up incurring massive fees.
There are benefits and reward programs especially with the business credit cards by different companies. For instance, automatic discounts can be availed by shopping at specific vendors