Five ways to get the most out of your business credit card
Are you looking for ways to maximize how you earn points or rewards with your business credit card? If so, you’re in luck! Here are five ways to get the most out of your business credit card by doing what you already do to run your day-to-day business.
1. Use it to build your credit profile
One of the best ways to use your business credit card is to create your credit profile. A strong credit profile can help you get approved for future loans and lines of credit that you may need when you’re ready to grow your business quickly and need financial help to get there.
Some business accounts will be reported to the consumer side of the three major reporting bureaus (Experian, Equifax, and TransUnion), which can be a great bonus if you’re also trying to build your personal credit and have the business card linked to your number of social security. However, not all cards fall under the same factions at each agency, so do your research before applying to find out which credit report will be affected: yours or your company’s.
2. Use it to earn rewards
Another great way to use your business credit card is to earn rewards for things you already buy. Many business credit cards offer rewards like cash back, airline miles, and resort points on purchases like shipping, cell phone bills, and popular business software and apps .
3. Use it to fund your business
If you need to fund your business by buying supplies or paying for professional services, a business credit card can be a great option, as many popular business credit cards offer low interest rates and no fees. annual.
However, don’t get too hung up on charging things, or you could get into debt quickly. If you’ve made mistakes by spending too much on your business, consider using a debt consolidation calculator to develop a strategy to get your business finances back on track.
4. Use it to extend warranties or insure expensive electronics
Some business credit cards offer the ability to automatically extend the manufacturer’s warranty for items charged to your card, sometimes even doubling the warranty for free. There are also benefits available on the cards that will automatically provide insurance or replacement protection for electronic devices such as cell phones or tablets in the event of loss or theft (provided their monthly bills are paid with the card). ).
5. Use it for emergency funds
If you need a quick cash injection, your business credit card can be a great option if you only need funds temporarily and can pay them off before interest accrues. Some business owners have used their cards to payroll or cover a last-minute supplier bill.
The bottom line
Business credit cards are a smart investment for entrepreneurs who can put them to good use. Get the most out of your card by using these five categories of benefits to help you grow your business without doing anything more than what you usually do.
This article does not necessarily reflect the views of the editors or management of EconoTimes