Don’t Have a Business Credit Card? Get One!

As a business owner do you currently have a business credit card or are you charging business items to your personal credit card? I tell all my clients to get a business credit card.  Why?  Consumer protection laws apply to personal cards when used for personal use. If you use your personal card for business you might be exposing your business.  If that alone isn’t enough to wake you up then also realize that business credit cards can establish your business line of credit (as well as personal credit). If you ever need a line of credit for your business you will need to be able to show business credit card charges.

 

Also, note that many issuers of business credit cards also report business activity to both consumer and commercial credit bureaus.

Here is the BIG reason why you want to get a business credit card… typically business credit has higher limits than personal credit.  I also find that business credit cards usually give better rewards for your spending.

Let me give you this one word of caution if you are using a personal credit card for your business. If you are co-mingling funds as an LLC, S-corp or C-corp you might lose your personal liability protection.

I have no preference for which business credit card you get I just advise you do get one and use it for all business expenses right away.

There are options for bad credit business loans so if you find yourself in this position look for alternative lenders who provide options for you.