Business Credit Cards

pair of hands folding 2 credit cards in each hand

You’re starting off your business, but you’re not sure how to use credit to help you grow. Getting a business credit card

is the first step toward becoming a successful business owner.

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Advertiser & Editor Disclosure

Kaped One

Terms, Rate & Fees
Terms:

Revolving · Net 30

Although the most rewarding card on the market, it is not recommended if you are struggling with your credit or cashflow.

  • Annual Fee: $499.00
  • Purchase APR: N/A

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Flex AdCard

Terms, Rate & Fees

Dash.ai is a Trak partner | Terms, Rate & Fees

Terms:

Net 30, Net 3

If you have a large ad spend budget and want to receive a healthy 3% cashback from it, then this card is for you.

  • Purchase APR: N/A
  • Annual Fee: $551.00

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Divvy Smart Credit Card

Terms, Rate & Fees
Terms:

Net 7 · Net 15 · Net 30

This is the best option for all businesses to start with as long as you make sure to pay your bill in full every billing cycle.

  • Purchase APR: N/A
  • Annual Fee: $0.00

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Business Credit Card APR Annual Fee
KAPED One 0.99%-17.99% $441
Divvy Smart Credit Card N/A None
Flex AdCard 5% 551

Advanced Auto Parts

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Net 7 · Net 30

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Dun & Bradstreet

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Business T Shirt Club

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Net 30

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Experian · Equifax · Ansonia · CreditSafe · NAV · Cortera

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Crown Office Supplies

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Net 30

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Experian · Equifax · Dun & Bradstreet · CreditSafe · SBFE · NACM

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Grainger Industrial Supply

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Net 30 · Net 45 · Net 60 · Net 90

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Dun & Bradstreet

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HD Supply

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Net 30

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Equifax

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Office Depot

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Net 30

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Experian · Equifax · Dun & Bradstreet

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ORR Safety

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Net 30

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Dun & Bradstreet

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Shritsy

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Net 30

Reports to:

SBFE · NACM · Equifax · Dun & Bradstreet · CreditSafe · Ansonia

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Summa Office Supplies

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Net 30

Reports to:

Experian · Equifax · Dun & Bradstreet

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The CEO Creative

Terms:

Net 30

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Equifax · Dun & Bradstreet · CreditSafe

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The Home Depot

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Net 30 · Net 60 · Net 90 · Revolving

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Experian · Equifax · Dun & Bradstreet

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Uline

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Net 30

Reports to:

Experian · Dun & Bradstreet

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Wise Business Plans

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Net 30

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5 Ways to Benefit from a Business Credit Card

You may get frightened when you hear the word credit, but it’s important to learn how utilizing credit can benefit your business. Owning a credit card that is suitable for your business will help your small or growing business succeed.

Credit Cards Are Useful For All Businesses

You may be deterred from getting a credit card because you feel as though your business doesn’t qualify for one. However, you’d be surprised to find out how accessible they are to any businesses!

Not only is a credit card accessible to all businesses, but it’s also beneficial to all types of businesses. Regardless of the size, age, and type of business, a credit cardis a crucial part of improving your company.

How To Qualify For A Business Credit Card

Getting a business credit card is pretty simple, as any business can qualify for one. You just need to ensure that you meet the basic requirements before you apply for a credit card.

Without these requirements, you won’t be eligible for a business credit card. These requirements help credit card companies realize whether you are a good fit for their company or not. These are the main requirements you can expect to see when you’re applying for a card:

●      Your legal business name. You need to have a legal business name for your credit card. If you’re in a partnership or sole proprietor business, then you can use the name you’ve given your business. If your business is registered with the state, you have to use your legal business name.

●      Your business contact information. This means that you need to have contact details as a business. You could use an email address, a telephone number, or your own personal details. It’s best to create different contact details for your business, so you can keep your personal and business life separate.

●      The type of industry you’re in. The industry your business is a part of makes an impact on the type of business credit card you need. Depending on the platform you used to apply for your credit card, you’ll get options of industries to choose from. Choose an industry that you feel best suits your business.

●      Your business entity type. The application will also ask the type of entity your business is. These are the different entities: a partnership, corporation, LLC, non-profit, government, and sole proprietor.

●      Business age and number of employees. This is where you state how long your business has been running for, as well as the employees that work for you. You may have to include how much you pay your workers each month.

●      Federal tax ID. Your employer identification number will verify your business credit card. If you are a sole proprietor business, then you can use your social security number instead.

●      Personal credit history. To get a business credit card, you need to show your credit history. Your personal credit score has a big impact on the type of credit card you’d be able to get. You won’t be filling this information by yourself on your application, as the credit card company will do their own credit check.

●      Your finances. You need to be able to showcase your financial history in your application. You’ll need to present your annual revenue, as well as your monthly expenditure. This helps the credit card company to determine the approximate size of your credit line. Your annual income is a critical part of your application, as it shows the credit card company your debt-to-income ratio. This can help them to determine whether you’re financially capable of paying them back.

If you have all of these requirements, then you are qualified to apply for a credit card. It’s as simple as that! Even if your personal credit score may be low, and your finances aren’t detailed yet, you’re still able to apply for a credit card. It may just limit your options.

 

How to Use a Business Credit Card

Learning how to use a credit card is simple, but knowing how to use it to benefit your business takes more practice. A business credit card can become negative if you don’t use it properly. Being able to make the most of your credit card allows you to reap the most benefits from it.

How To Get Your Credit Card

Learning how to use your credit card, you need to understand the simple process of getting one. Getting a business card is simple once you ensure you take care of all the requirements. This is what you can expect to go through when applying for your card:

●      Choose a credit card. There are countless options out there, but you have to choose a card that works best for your business. Some credit card applications are simpler than others.

●      Check your credit score. As established earlier, your credit score is a crucial part of this process. The better your credit score is, the better options you have. Having a low or new credit score doesn’t mean you won’t be able to find a credit card for yourself.

●      Fill out an application. This is where you gather all your information from the requirements and you fill out the application of your choice. Ensure that you fill in your details accurately, because this can impact whether you get accepted or not.

●      Wait for approval. The approval process doesn’t usually take long. Often businesses get accepted immediately after applying for a card. If your application gets rejected, you may not meet all the requirements of the card.

Use Your Credit Card Responsibly

Once your application gets accepted, you’re ready to use your card! This is where you need to learn credit card responsibility. It can be tempting to use your card freely. You want to buy luxurious items for your business and yourself. You want to use it as your primary source of paying.

Being responsible with your card is so important, or you might find yourself losing control. Although credit can help to grow your business in many ways, it can also destroy it if you're not responsible with your spending.

These are some tips that will help you to be responsible for your new credit card:

●      Stay well below the daily limit. Your card company will provide you with a daily limit. This limit varies, depending on how good your credit score is. Even though you’re provided with a daily limit, it’s important not to overdo it. You should keep track of your purchases and ensure that you are staying within your means.

●      Use other forms of payment. Having a business credit card doesn’t mean it should become your only form of payment. You don’t have to rely on your business credit card. Continue to use debit card orders and your checking account to pay for things. By balancing it out, you learn how to use your credit card responsibly.

●      Don’t splurge. It’s alright to buy a few luxury items for your business occasionally, but it’s crucial not to make it into a habit. Splurging regularly can damage your business’s bank account, as well as your credit score, if you’re unable to pay your card company back. Learning discipline when spending is crucial. It prevents you from buying unnecessary purchases for you and your business.

●      Remember, you have to pay it back. A credit card can be tricky to manage because it’s fun and easy to use. It can feel as though you’re using free money. It’s important to remember that whatever you’re purchasing on your card, you have to pay for at a later stage. When you realize this, it prevents you from spending recklessly.

Distinguish the Difference Between Your Personal and Business Card

Getting a business credit card is fundamental because it allows you to distinguish the difference between your personal and your business’s finances. When you start a business, it’s important to learn how to manage your different accounts. This helps you to build a financially stable business.

The Importance of Separating Your Personal and Business Credit

Although credit can be beneficial for your business, it can also be harmful if not used properly. Often, when business owners use their personal credit for their company, it leads to deeper financial issues in the future.

Having separate credit cards teaches you how to manage your finances independently. This can have the following positive impacts on you and your business:

●      Simplifying your finances. It can be overwhelming when you have to manage both your personal and business finances. This can become even more complicated when you mix your statements. Using separate cards for your personal life and business allows you to distinguish the difference between these finances.

●      Your personal credit rating can impact your business. You don’t want your personal bad credit ratings to impact your business. When you use your personal credit card, it may limit your opportunity to grow your business. Your business transactions can negatively impact your personal credit score.

●      Learning how to separate your personal and business life. Not only does a business credit card help you to distinguish the difference in your finances, but it can also help you find a balance in your life. You learn how to separate your business life from your personal life. This helps you to run your business while still taking care of your own personal needs.

The Differences Between Personal And Business Credit Cards

Using a business credit card is much the same as using a personal credit card. They both provide you with similar points and benefits, but they do have some differences. The terms and conditions differ with business and personal credit. It’s important to know these differences, as it’ll help you to take care of your finances efficiently.

These are just a few differences between your personal and business credit cards:

●      Credit limit. A credit card or a small business usually has a higher credit limit than a personal credit card. This means that you’re able to make bigger and more purchases in a day using your business credit card.

●      Bonus programs. Your bonuses differ with personal and business cards. Travel and restaurant bonuses are frequently provided for both forms of credit card. There are some specific bonuses you can get for your business, such as utility bills, advertising, and office supplies.

●      Book keeping perks. After your tax year, you’re going to want to go through your credit transactions. Business credit cards for small businesses often provide you with summaries in detail. Whereas your personal credit card’s statements lack detail. This will help you to bookkeep for your small business efficiently.

Finding the Best Credit Card for You

You may think that all credit cards are the same, but this is far from the truth. There are a variety of credit cards out there that all have different benefits and functions. A credit card that works for other businesses may not be the best option for.

Ensure that you find the best credit card that works for you, and don’t settle for the first option you see. The goal is for your credit card to benefit you and your business, so find one that aligns with it.

Looking At Your Options

You should start off by looking at the different options of credit cards you have. Remember to keep your options open by not only sticking with what you know. There are countless credit card options, these are just a few high-rated options to look into:

●      Ink Business Preferred Credit Card. This card is best suited for businesses who use travelling frequently. You can earn points that help you to save money. You can also get employee credit cards for free! The cons of this card are that you have to pay an annual fee, as well as high transfer and cash advance fees.

●      Ink Business Unlimited Credit Card. This card is similar to the previous one, except it differs in its reward rate. You earn a 1.5% cash back reward on credit card transactions you make for your business. This card is recommended for businessowners who don’t have the time to worry about managing and optimizing their credit cards. The simple flat rate from this card means that you can save money and earn rewards without having to manage it! Another benefit of this credit cardis that there is no annual fee, but there are expensive foreign transaction fees.

●      United Club Business Card. This card is suitable for business owners and employees who fly often for work. You get a welcome bonus of 75,000 miles, which will help your business to save a lot of money on traveling. This credit card comes with a lot of perks, especially if you apply for the United club lounge membership. It isa costly credit card, as you have to pay a fee of $450 annually.

●      The Blue Business Plus Credit Card from American Express. This credit cardis perfect for smaller businesses, as it provides you with points with all purchases up to $50,000 a year. There are also no annual fees, so it’s a great affordable credit card to start off with. But, when you start to purchase over$50,000 per year, you earn fewer points.

●      Wyndham Rewards Earner Business Card. This card is suitable for businesses with employees who travel on the road. You earn points every time you buy gas with your business credit card. You even get free cell phone insurance, but this all comes at the cost of $95 per annum.

Do Your Research

After you’ve taken a look at all the different options, it’s time to do your research. Although most credit card companies will give a brief explanation of their cards, you need to gather a deeper understanding.

Unfortunately, many businesses are convinced by credit card companies at first, but once they join and read the terms and conditions, they realize the card doesn’t align with their business.

When you research the different credit card companies, draw up a list of pros and cons for each. Proceed to create a list and add the options you think are most suitable for your business.

It’s valuable to watch and read reviews on these chosen credit cards, as this can give you a better idea of how they work for other businesses. Knowing other people’s personal experiences with a credit card company helps you to feel comfortable committing to getting a business card.

When you’re doing research on these credit cards, you must consider the following factors:

●      The rates and fees. Consider the rates of the credit card, and whether it’s something that you can afford. It’s worthwhile to look into getting a credit card with lower, more affordable rates. Cards with lower rates and fees usually have fewer benefits.

●      Rewards system. You want to get a credit card that has a reward program that works for you. There is no point in getting a card that rewards you for purchasing gas when you don’t travel on the road for your business. Ensure that the rewards system will actually benefit your business.

●      Introduction bonus. Many credit card companies offer an introduction bonus. This means that they offer you bonus benefits the first time you sign up with them. These introduction bonuses can tell you a lot about the company, and what they’re willing to provide to you.

●      Annual fees. Not every credit card has annual fees. You can choose a card company that is free of charge, but this may limit your options. Annual fees can range anywhere from $0 to $500.The more you pay, the more benefits you can get.

●      Foreign transaction fees. If your business is planning on making foreign transactions, then you should them when choosing a card. You want to choose a credit card option that provides you with lower, more affordable foreign transaction fees.

When you’re doing research, it’s important to take a look at many sources. You want to gather as much accurate information about these cards as you can. You can start by searching online for articles such as this article. These articles will give you a variety of options that you can look into.

You can proceed to do research on each credit card. This can be done by reading more articles and reviews, or even watching YouTube videos. Here’s an example of a video that can help you to learn how to find a business credit card that’s suitable for your start-up. How To Get A Business Credit Card For A Startup

Identify What Benefits Your Business Needs

Once you’ve done your research, and you know what the different card companies have to offer, you need to identify what’s best for your business. Take your list you made during research and determine which one fits the bill.

To determine what’s best for your business, you should ask yourself the following questions:

●      What type of benefits do I want? Consider what benefits would be valuable for your business. Knowing these benefits will help you find a credit card that provides you with what your business needs.

●      What are the expenses for my business? It’s important to look at your business’s expenses, as this can help you to discover what credit card company can help you the most. For example, if a major expense of yours is paying for gas when travelling, then you can get a card that gets you points, rewards, and discounts every time you buy gas on your business card.

●      How much am I willing to pay? Unfortunately, many of the high-quality credit cards need you to pay an annual fee. There are many reliable options that have no annual fees, but the more benefits you want, the more you may have to pay. Consider how much you’re willing to pay monthly or annually for your credit card. Remember to take a look at all the different transaction fees and ensure that they meet your financial requirements.

●      Does it suit my business? Ask yourself if the credit card company is suitable for your business. Consider all the elements of your business and determine whether the card aligns with it.

●      Do I qualify for this card? This is a crucial question to ask yourself. Although you may find a card that you feel is the perfect fit for you, you may not meet all their requirements. This makes it important for you to check the criteria for your chosen card, and consider whether you qualify for it or not. If you don’t qualify for it currently, it doesn’t mean you can’t work toward applying for it in the future. You will just need to use a substitute card that you do qualify for at the moment.

Choosing Your Credit Card

After asking yourself these questions, it’s time to apply for the credit card you feel is a good fit for your business. Take all the previous factors into consideration before you commit to a credit card company.

Remember that you are able to change card companies at a later stage. If you’re dissatisfied with the credit card company you’ve chosen, it doesn’t mean you have to stick with them. You can change to a company that best suits you.

It’s useful for you to change or upgrade your credit card as your business develops over time. You may find that your credit card works for you now, but as you grow, it may lose its value to your business. Keep your credit card updated with your business.

How to Use A Credit Card for Your Start-up Business

Having credit for your business is more valuable than you may think, especially if you’re a small business. It’s unlikely for most business owners to have a large sum of money to pump into their business. Without credit, it can seem impossible to fund your start-up business.

Challenges of a Start-up Business

Start-up businesses can be challenging to run, as there is very little to work from. You’re finding your feet as a business, meaning you may not have the funds to operate your new business. This can be overwhelming, especially if you’re a small business that lacks funding.

Fortunately, business cards have made life a lot easier for smaller start-up businesses. You no longer need large investors to fund the operations of your business, or a large loan that gets you into a life of debt. A business credit card helps you to take care of your financial situation until your business is on its two feet.

How A Credit Card Can Benefit Your Start-up Business

If you’re starting up your business, getting a credit card is the perfect step forward. As a start-up or new business, your credit will be a blank slate. Although this may sound positive, it can actually become negative for your business.

Building up good credit for your business shows people that you’re able to pay off your debts. Without this history, it becomes more difficult for you to take out a loan, rent property, or grow as a business.

Your business needs some sort of credit history to show future lenders that you are able to pay them back. A business credit card is a great place to start, as you don’t have to make big, expensive purchases to get your credit rating increased.

Getting a credit card for your small business is also beneficial because it helps you to afford to run your business. If you’re not earning a steady profit, it can be challenging to afford the everyday necessities for your business. With a business credit card, you’re able to pay for what you can’t afford now, so you can pay it off at a later stage.

These are some other benefits of getting a business credit card for your start-up business:

●      Simplify employee expenses. You may need your employees to purchase stock or things for your business. This alleviates the complicity of reimbursing your employees. They can use their business card to purchase anything that’s needed to run your business.

●      Relieves stress of funding. It can be stressful to find the money to put toward your business, especially when you’re just starting off. Money can be tight, making it an overwhelming struggle to provide for your business every month. When you use a credit card, you can stress less about your funding, as you’ll always be able to provide for your business.

●      Making the most of credit. When you use credit for your small business, you’ll find that you get discounts and rewards that benefit you in the long-run. You can also get discounts or bonuses for specific expenses, and this can make operating your small business more affordable.

Reaping The Benefits of Your Start-up Business Credit Card

You can only benefit from your start-up business card if you understand what you can receive from your credit card. To reap these benefits, you must also consider the credit card you apply for.

There are countless card options out there, but it’s important to get the best option for your start-up business. Ensure that you get a credit card with low rates and many perks, as this will help you to launch your business. These are a few great business credit cards for your start-up.

Make use of account management tools.

When you’re a start-up business, it can be difficult to learn how to manage your accounts. With your business being small, you don’t want to add the expense of hiring someone to manage your finances. This means that you have to learn on your own, and this can be challenging.

Most credit cards provide you with account management tools that help you to manage your finances. They send you monthly summaries of your transactions, and this can help you to gauge the amount of money entering and leaving your business.

Apply for The Right Card

There are credit card companies that are best suited for start-up businesses. These cards often have no annual fees, including low transaction fees. Your credit card doesn’t have to be perfect for your business when you’re getting started, but that doesn’t mean you should settle with something that doesn’t work for you.

A mistake that most small and start-up businesses make is that they choose the first credit card company they find. It can be easy to get convinced by a card’s advert, especially if you’re new to the credit card or business industry. Remember to research, and weigh the pros and cons of each company.

Conclusion/Final Words/Final Thoughts/In Summary

Using a business credit card can be a great advantage for your business, especially when you’re a small business finding your feet. Although the thought of using credit may sound dangerous for you financially, it can provide you with a lot of opportunities.

A credit card allows you to purchase stock, office supplies, and many more expenses. This can be valuable, particularly if you’re a small business with small capital.

It helps you to build a healthy credit score for your business, so you can apply for financial opportunities in the future. This will help you to grow your business and succeed financially.

With all these benefits in mind, it’s important to remember the detriments of a business credit card. There are negatives that come with using a credit card if you don’t use it responsibly. You don’t want to go down an unhealthy financial path that detriments your business’s future.

 

Frequently Asked Questions

These are some answers to frequently asked questions. This can help you to learn more about business credit cards, as well as it may answer some of the questions you have after reading this article.

Can I Get A Business Credit Card If I Have a Bad Credit Score?

Yes. Although your credit score is a critical part of getting a business credit card, it doesn’t have to be perfect. No matter what your credit score is, you’re bound to find a credit card that will approve you. A low or new credit score does limit the amount of credit cards you can apply for. You may end up with one you’re not completely satisfied with.

Your credit score shouldn’t hold you back from getting a good credit card. We recommend applying for business credit cards that do not check your personal credit report. These are some you can consider checking out:

●     Divvy

●      Flex AdCard

●      Ramp

●      Capital On Tap (Soft pull on your personal Experian report)

Business Credit Card APR Annual Fee
KAPED One 0.99%-17.99% $441
Divvy Smart Credit Card N/A None
Flex AdCard 5% 551

What Is An Employee Credit Card?

When you get a business credit card, you can get credit cards for your employees. These cards can be used by your employees to purchase on behalf of the business. This is valuable for employees who have to pay for things such as gas and travelling. Many credit card companies issue these cards for free without additional transaction fees.

Is a Corporate Credit Card the Same As a Business Credit Card?

No. Although corporate and business cards provide a similar service, they do have some differences. As established throughout this article, a business credit card is meant for small, growing businesses. Whereas, a corporate credit card is for bigger businesses, known as corporations.

To qualify for a corporate credit card, you need to have a minimum of 15 employees, a high volume of transactions, and you should be able to reach a specific spending requirement each month.

Getting a business credit card is simple, but getting a corporate card can be a lot more challenging. If you are running a small or medium business, you will have to start with a business card. You can upgrade to a corporate card once your business expands.

Why Is My Credit History So Important?

Both your personal and business credit history are valuable when you’re starting a business. To get a credit card, your personal credit history needs to be examined. This lets credit card companies know whether you’re a high or low risk client. It determines whether you can get approved by these companies or not.

Once you get approved for a credit card, your business credit is just as important, as it impacts your business’s financial future. A good business credit will allow you to achieve many potential financial opportunities.

Can I Use My Business Credit Card For Personal Transactions?

Although you’re able to use your business credit card for personal transactions, it shouldn’t become something you get comfortable with. One of the major benefits of having a business credit card is that you’re able to separate your personal and business finances.

When you first get a business credit card for your small business, it can be tempting to splurge on yourself, especially if your small business doesn’t require many expensive purchases. If you make a habit out of using your business card for personal transactions, you may find yourself in a financial predicament. This will make it more challenging to afford your monthly credit card bills, as well as it can make managing your books difficult.

Can I Run My Small Business Without a Credit Card?

You may think that a business credit card isn’t vital when you own a small business, but this isn't necessarily true. Yes, your business may be able to survive without a credit card, but you will miss out on countless opportunities to grow and save as a business.

Credit cards are especially useful to small businesses, as it’s a great tool that can help you to find your feet. Not only are you able to build healthy credit for your business’s future, but you’re also able to reap the benefits of credit card perks and bonuses. Without all of these benefits you will find it challenging to expand your business, especially if you aren’t starting off with a large amount of capital that will fund your business.

 

 

 

Advertiser & Editorial Disclosure

The credit card, financing and service products that appear on this site are from credit card, financing and service companies from which this site receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card, financing and service products or all available credit card, financing and service products. All images and trademarks are the property of their respective owners. Editorial and review content is the property of Trak, and has not been approved, provided, or reviewed by the company providing the credit card, financing, or service.

For complete information, see the terms and conditions on the credit card, financing and service issuer’s website. In most cases, once you click “apply now”, you will be redirected to the issuer’s website where you may review the terms and conditions of the product before proceeding. While Trak always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Personal FICO credit scores and other credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit or financing type you are eligible for. Trak uses the Vantage 3.0 credit score to determine which credit offers are recommended which may differ from the credit score used by lenders and service providers. However, credit score alone does not guarantee or imply approval for any credit card, financing, or service offer.

Editorial disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of Trak. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities. Reviews are not provided or commissioned by the credit card, financing and service companies that appear on this site. Reviews have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.