It is safe to see that most consumers take some kind of credit card, and it would be absurd to think that no entrepreneur will have a credit card. More than 80% of small business owners use credit cards, suggest federal Reserve. Credit card is the best source of payment when we do not have a large amount of cash on our hands.
When business owners and entrepreneurs stop using payments by the end of their credit card billing period, they can use a credit card to turn on those otherwise otherwise physically impossible purchases in easily obtainable goods and services. This is a powerful tool for those capable of managing their credit and financial responsibilities, but are you using the right tools?
As a daily consumer, you should use a personal credit card to buy goods or else not buyable. To make personal credit, buy groceries, clothing and accessories necessary to live your life comfortably with a personal credit card. A good personal credit score on your annual credit report can help you get better credit account conditions, personal loans from online lenders Lendgreen, And even you get a better job.
For entrepreneurs to read this, you probably need some things to keep your business above rising water on some types of credit cards. However, what kind of credit card was? Did you put your office furniture expenses on the same personal credit card that had bought your groceries last night? For those practicing this technique, you want to apply for a proposed credit card specifically for businesses, business owners and people employed in your business. you Must know The main difference between a personal credit card and a business credit card
Keep work separate from your personal life
One of the main advantages of having two separate credit cards, one for business use and for personal expenditure, the other is to keep the types of purchases that you separate. Obviously, the purchase you purchased to benefit your business will go to you Business credit card, And individual purchases will be ordered on your personal credit card. It helps to avoid confusion when it comes time to register your taxes.
You can look at tax deductible items more clearly on different credit card invoices, find out better that your bills need to be paid, and know which expense came from where and for what reason They were bought.
More than one credit score are better!
If you are a business owner and using both business and personal credit accounts to separate your purchases, you actually get the chance to create two different credit scores. While business credit cards are initially attached to your personal credit report under your name, if you have included your business, you can finally break that line of credit and keep it under the name of your business.
Why do you want two lines of credit score - personal credit score and business credit score? Well, Credit scores can help Later we are in life With our personal financing, if we have been able to keep ourselves relatively dry from the credit lending pool, then we have an excellent personal credit score. This allows us to buy cars faster, allow big houses, better credit accounts to be opened, and make life a lot easier. Most of these can be translated into the business side of the credit score.
The way a business credit score is tracked (100 points instead of 0 - 300 - 850, is not quite similar), yet it operates evenly. A credit credit score takes the history of purchase and payment on those business credit accounts when calculating their credit score. It would be easy to borrow a large amount of money in business lines of excellent credit to advance and develop their business.
If you have business credit card, but you have not registered your business name with business business bureau and credit agencies, then people responsible for calculating your business credit score will not get them too. Instead, it will be linked to your personal credit score which can damage your score because business credit cards do not reach the benefits of personal use of personal credit cards.
Expand the use of your business credit card
A personal credit card is for you and only for you. By using a business credit card, you can open the opportunities to meet your employee's work when you can not go out and purchase the necessary equipment to buy the necessary job. Many business credit card borrower allow different business employee credit cards to be sent under the name of you and your business.
It adds convenience for many different types of businesses where stocks, s / ms, when stocks can be purchased quickly. Boss, are not always around. Make sure you keep track of the employee's credit card expenses. Your employees can forget that this is a business credit card that you have given them, not a free personal credit card you paid.
Take advantage ... less business costs!
Many personal credit cards offer amazing benefits. Gas prices have come down, airline miles, cash back, and other generous rewards have been given to those who know how to use them to take advantage of their personal credit card. Buying for a business credit card can help you and your business get the same benefits.
Many credit card reimburses the credit card if the credit account is fully paid by the entire billing period. With high expense of business, it can be several thousand dollars in a month. Other cards may offer an extended payment period when there is a slow time. Many business credit cards allow business owners to get special discounts on places where it is almost necessary to enter into business (postal services, copier services, technology and business computer outlet, etc.).
Both types of credit cards should be treated the same way. Do not spend too much on how much you can spend on the card, make a purchase for the best rates before applying, and if you can not afford it, always pay as much as you can on your credit balance . The importance of credit is not only a factor in your personal life, but it can decide the life or death of any small business that you want to develop further!
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