Advantage of using a Business Credit Card

Advantage of using a Business Credit Card

One big advantage of using a business credit card is that you can separate personal and business transactions that could create potential tax and money management problems. If you just start a small business, it’s important to start building business credit which will make it easy for you to take loans and credit lines as you business grow. Most of the business credit cards now offer you the option to summarize expenses at the end of each year. The purchases you made are categorized and itemized. Now, most of business credit cards even offer reward points and cash back. You can earn cash back or redeem reward points for travels, hotels, and merchandise.

Credit cards for small business offer business owners an easy access to credit they need to manage their cash flow. Every business, big or small, needs some capitals for rent, store furniture, machinery, raw materials. Sometime a business loan is not enough and may carry high interest rate. When cash is tight and you need money to kick start you business then a new credit card will definitely help your business thrive.

Expense tracking is important for all size companies. A business credit card monthly statement gives you a summary of all your expenses. You can break them down by category such as employee, meal, or travel so you know instantly what cost the most during the month. Using the monthly and yearly data you can easily create pie charts and bar charts and spot a trend for the past year so you can be better prepared for future expenses. To make your year-end filing even easier you can download card statement into your accounting software each month. Or, if you prefer, you can get expense reporting from your card broken down by employee, a service offered for free with most business credit cards.

Business credit card offers come with numerous benefits. Some offer 0 apr for a limited period, some give you cash back for every purchase. If you business require frequent travel then a credit card with travel rewards will save you money on fly and hotel. Adding employees as cardholders will also speed up the earning process.

If you have bad or poor credits and want to reestablish your credit, these are the special cards for you. Since you credit history is bad or poor, you might have to pay a higher interest rate than that of regular credit cards. But if you are determined to get your credit back to good standing, apply for one of those credit cards and alway make the minimum monthly payment, or even better – pay off the balance every month. Your credit lender will be willing to low the interest rate it will become easier for you to borrow more money and apply for a mortgage.

Apply for a secured credit card today and don’t damage your credit further. There are no application fees on majority of the secured credit cards. Unlike debit cards, you don’t have to deposit money to the account first. The credit line depends on you credit scores and other information you submit on the application. However, the amount of credit will increase if you make a refundable security deposit.

How do credit cards for people with bad credit help you rebuild your credit history? A secured credit card is an actual credit card. Your monthly payment information is sent to 3 major credit bureaus – Equifax, Experian, and TransUnion. It’s very important that you pay off the entire balance every month. Your credit score will be greatly improved and the card issuers will reward you with higher credit line.

If you have another credit cards that need to be paid off, don’t try to transfer the balance over to the new secured credit card. Since you credit is poor you won’t be qualified for any 0 apr credit cards. Even though the secured card allows you to transfer balance, the APR will be as high as 24.99%. Paying that much interest and minimum month payment will only slow your credit rebuilding process. Avoid transferring balance until you have a good or excellent credit rating.

So if you have bad or poor credit you can apply for a secured credit card online. The only thing should be aware is that credit card companies do charge annual fees for these types of cards. The fees range from $29 to $59. Consider you will be able to control and starting build good credit, the fee is really a small price to pay.

Small Business Credit Cards

Many small business owners often ask this question – I already have a personal credit card, and the credit line is more than enough for current business expense, do I need a business credit card? How would owning a business credit card impact my business? Whether you operate your business from your home or a formal office and employ just a few workers. A business credit card can acutally take streamline your business operation or even take it to “the next level”.One big advantage of using a business credit card is that you can seperate personal and business trasactions that could create potential tax and money management problems. By using the card for large supply orders, business subscription services, and even routine office products such as pen and paper, monthly expenditures can easily be kept track of and analyzed on the monthly statement. Most of the business credit cards now offer you the option to summarize expenses at the end of each year. The purchases you made are categorized and itemized. Download the transactions to your favorite money management programs such Qucicken and Microsoft Money. You can even directly import the transactions to some tax preparation progams to help minimize data entries, simplifying every day bookkeeping. Using a business credit card makes your organization more legitimate in the eyes of those you do business with and even in your own mind as well. Having a business credit card can greatly help boost the credibility. If you are trying to transition a hobby to a real business or start up something completely new, it’s important to start building business credit which will make it easy for you to take loans and credit lines as you business expand in the future. Today, most of business credit cards offer various type of reward and cash back programs. Your company can earn cash back or redeem reward points for travels, hotels, and merchandise. Choosing a particular credit card that offers the perks that will benefit your company the most.