Every small business should have a business credit card. Many credit card issuers including Visa, Master Card, Discover, and American Express, as well as many banking and financial institutions offer business credit card options.
Why Your Small Business Should Get a Business Credit Card
First, you don’t need to be a big business to have one, and second, having and using a business credit card instead of a personal credit card keeps business expenses and personal expenses separate. That is important for legal purposes and critical at tax time. A business credit card helps to build the credit history and credit score for the business. At the same time, the card’s credit record is separate from the credit record of one’s personal card. A business credit card can offer many perks like cashback and bonus categories that can help the business. And it can offer more spending power to the business. It typically offers higher credit limits compared to a personal credit card.
How Does One Get a Business Credit Card?
First, check card eligibility requirements including your personal credit score because that will be a key determining factor for qualification. Second, have a satisfactory and consistent income stream. Third, research available reward options. Fourth, understand the annual fees and the interest rate that you will pay on credit card debt.
Things to Know About a Business Credit Card
To qualify for and obtain a business credit card, your business does not have to be incorporated and you don’t need an employer identification number to get one (you won’t have one if you operate as a sole proprietor.) There are different credit cards for different types of credit. Business credit cards can offer attractive promotional financing. And you can combine your business and personal rewards. It is important to get the card that fits your needs the best.
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