Business Credit Cards: Expenses to Avoid
Being a boss is known to attract a good number of benefits. Such will often include company credit cards that attract better rates and even rewards. However, power begets responsibility. It is valuable for you to be familiarized with what has to be charged on this business credit card and what needs not be. We have certain personal expenses that you need to aim at not including on these business credit cards. This will time and again consist of the following.
Seek to ensure that personal expenses are barely considered whenever you are on a business trip. You will learn that most modern lenders will often look at the card’s payment history. This does account for all the items that have been paid for by the card. You will note that they can easily reject your business loan application after considering these factors. This is especially if they find that it has been used on personal expenses. It is important for you to ensure that any extra personal expense is charged on your personal card whenever you are on such trips. There are various cards that you can rely on for this matter. It is also not recommended for you to rely on these cards for cryptocurrency investments. While you might feel lucky by investing in cryptocurrency, it could easily hurt your business. In fact, the many credit card companies have banned this. You will also note that these investments tend to be quite large. This can easily plunge you into deeper debts in the long run.
In as much as cash advance looks quite appealing, it could land you into a mess at the end of the day. It does not attract any grace period. This means that the interest will start piling up as soon as it is advanced. You will also note that the interest rate charged will often be quite high. You need to remember that there is a transaction fee charged too. This can actually be quite expensive for your company at the end of the day.
It is advisable for you not to use these business credit cards on expensive items. There are various luxuries like flashy cars that you need to avoid on credit cards. This is due to the fact that your credit score will be compromised at the end of the day. There will be an increase in the utilization ratio. This means that you will suffer a higher interest rate too. Aim at keeping your personal expenses distinct from the business loans.