Things to Know About Business Credit Cards

Credit cards offer us an easy tool for handling our finances. Many people now use credit cards to pay for things essential to their daily lives. Aside from that, credit cards are also helpful in expanding your business.

These credit cards provide a convenient method for making large purchases. Necessary machines, equipment, electronics, and even office supplies are now easily bought with the help of these credit cards.

What is a Business Credit Card?

Business owners, such as CEOs, sole proprietors, or new entrepreneurs, should realize that business cards differ from conventional credit cards. Rewards, eligibility, and liability protections vary from one card to another. Not every individual protective feature for standard credit cards is available for these credit cards.

Business credit cards apply to people wanting to create their company. Business owners of companies, startups, sole proprietors, or small businesses are eligible to get a business card. Banks or credit card companies do not require you first to have an office or hire any employees to get this credit card.

What to do if you have Credit Card Troubles?

For example, if you live in Houston and are in the process of starting a new company, you might use your credit card. It might surprise you that debts will begin to pile up on a credit card meant for personal use. Immediately contact any professional from Credit Attorney Houston who can help you with debt relief. We then advise you to get a credit card tailored for dealing with business endeavors.

How Should You Use a Business Credit Card?

Similar to a personal credit card, you can use this credit card to perform purchases necessary to the growth of your company. If you are an entrepreneur, you can use business credit cards for your business expenses. For instance, these credit cards are applicable for buying supplies, traveling fees, or new office furniture.

Being a business owner, you should know the traps of having a business credit card. You shouldn’t use such a credit card to spend money your company has to earn. It also applies to making purchases with a credit card with cash inside your bank. Several of these credit cards apply regulations limiting any card holder from using their cards for personal use.

Things to Know About Business Credit Cards

Business Credit Cards are Different from Personal Credit

If citizens have personal credit, business owners also have business credit. It lets potential lenders, credit companies, and banks know how responsible a business owner is with their credit history. Credit card issuers review their clients’ personal and business credit histories. It helps them decide if a person qualifies for a credit card and sets their credit limit.

No Registration Requirements

Getting a business card is now possible for startups and any new entrepreneurs. Freelancers, partnerships, or sole proprietors all qualify for getting these credit cards. After successfully obtaining a business credit card, they can use it to purchase anything to expand their business endeavors. These credit cards are applicable for travel fees, office furniture, or daily supplies a company will need to run.

The Difference in Liability Protection

The Card Act of 2009 does not hold a personal credit card user liable for fraud. Instead, the card users have a twenty-one-day period for paying back purchases. Credit card companies can also increase the interest rate of periodic payments. Some credit card issuers follow these guidelines for business credit cards. However, not all of these credit cards feature the same protection.

Rewards

Similar to conventional credit cards, some of these credit cards share rewards with their users. Some examples are bonuses, cash back, or even travel tips. There are business credit accounts that offer temporary coverage for large-scale purchases. The rewards and benefits of business credits make them efficient tools for an expanding business.

Conclusion

Business cards are entirely different from conventional cards. People who operate a business or start to build one are eligible to apply for business credit cards. However, entrepreneurs should not use these credit cards for personal expenses or spend money they do not have in the bank.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan