Business requires hard work and dedication but still credit pays a crucial role. Day to day running of business require credit to run business smoothly. There are many Business owners who prefer personal Credit Card (CC) instead of business ones for the business expenses. If you are among those individual then you seriously need a rethinking.
Using personal CC for business expenses can prove to be disaster. So by using simple steps you can avoid the common pit falls.
1. Keep them separated: If you don’t want things to get messy then avoid using personal credit card. The judicial use of business credit card is very critical to your business expenses. So don’t mix the personal one with business.
2. Why to pay more?: It’s a common perception that business CC carry high interest charges as compared to personal credit card. It’s just a myth so don’t fall in this trap. The market of business CC is very competitive just like personal credit cards. So getting a good deal required a good market search.
3. More than just card: If you want to get business related perks then the business CC is the only option available. Even there are numerous rewards available on these cards and even card companies issue additional cards for employees and give some insurance benefits also.
4. Credit history is must: It’s a fact that you and your business are two different entities. For having CC for personal use, you need your own credit history. By having business card you are going to increase your credit worthiness among your suppliers and customers as well. This will increase your future business opportunity.
5. You have to guarantee: If you have no credit history then possibly you need to guarantee your business CC personally. It’s just like co-signing for your business and by this you can build your credit history. In addition you can build your own personal credit report.