Money Matters and You: The Many Benefits of Having a Business Credit Card

Money Matters and You: The Many Benefits of Having a Business Credit Card

There are many business cards out there that allow you gain some major points and rewards by simply signing up for a card and meeting the minimum spending. Credit cards that are focused for small business owners offer a variety of help you really can’t find anywhere else. A lot of these sign up bonuses are huge and include great bonuses on different spending categories as well. Having a great business credit card can increase your spending power and do wonders for your business credit score as well.

Getting a Small Business Credit Card

Many people might be under the impression that you need a large business to secure a business credit card. All you really need is an incorporated business that has its own Federal identification number before applying for a business credit card. Your first order of business should be using your card only for business related expenses. There are different rules before you can embark on receiving a credit card for your business. It is an option for small businesses that should be capitalized on.

If you have any viable small business of any kind you can begin to keep your finances different from your personal expenses. All you will need to supply is usually your social security number; federal EIN and that will do it.

Your regular personal credit score will take a small hit after applying for a business credit. Once your business line of credit has been established it will no longer impede on your personal score any longer. This is just a checkpoint for them to determine if you’re eligible for a business credit card.

Noticeable Benefits 

One of the first things you’re going to see as a business owner is that the division between your personal and business expenses will now be way more pronounced. A lot of us currently use personal credit cards as a quasi-method of business when we should really be putting this on a legitimate business credit card. It is important to make this distinction between two different expenditures.

Tracking different expenses is an easy way for accounting the difference between personal and business expenses. It also comes in handy for your accountant and the IRS for that matter.  This is one of the major reasons people will go for a business credit card in the first place as well.

The sing up bonus is also something that is going to jump out at you as something that is definitely worth the price of admission. Getting a business credit card allows for a new bonus you can use on a myriad of business expenses.

Business Perks

For a lot of different cards you’ll be able to get more points based on spending categories. Airport lounges are just one place that comes to mind for those that want to take advantage of all of their extra miles they’ll be receiving. Sometimes you will even be eligible for discounts at certain vendors or major companies.

Having this additional purchasing power helps when traveling around the country or world to mitigate travel expense. Some cards like the Chase Ink card allow for complimentary Lounge Club membership. These cards also don’t only show you and categorize what you’re spending but give you plans to pay back the debt as well.

All of these are uniquely business perks that you won’t be able to find in any other area like personal consumer credit cards. These varying plans can help assist a business grow to become the best it can be.

Card Variance

There are a lot more cards out there once you’ve got started. Many banks will limit the number of cards you have. As long as your business credit score is healthy and flourishing you have an unlimited amount of business credit cards you’re allowed to pick up. This option is a great way to keep ensuring bonuses for sign ups and builds an even larger credit line. If you’re maximizing all of the spending categories and paying them off in a timely matter or in full, you’ll actually be making money.

While you’re doing all of this you are also in the process of building up a business credit history. Increasing your line again doesn’t do anything to your personal line, but this helps build the business aspect of things. Overall, there isn’t a reason you shouldn’t get a business credit card if you are able to and your business warrants it.

Zachary Cook is a small business owner who writes about all manner of business topics relevant to today’s small business owner. From starting up to growing and perhaps even selling.

source http://www.business-opportunities.biz/2016/11/24/money-matters-many-benefits-business-credit-card/