How To Reap the Most Benefits From Business Credit Cards

Using your business credit card can help you reap a lot of benefits — if you know how to. You have to make smart decisions if you want to maximize these benefits.

In this article, we’ll provide some useful tips and reminders to follow if you want to get the greatest benefits from your business credit cards. Read on!

Build Your Credit Score

Use your business credit to build your business credit score. Even with a strong personal credit history, you need to establish a stronger business credit score. This becomes extra important when you apply for funding.

To do this, pay your credit card payments on time. Doing this will show investors you’re responsible for financial management. Down the road, this can lead to better financing deals.

Earn and Maximize Rewards

Business credit cards often offer membership rewards. Examples of rewards include:

  • Points for flights, hotels, and travel
  • Gift certificates
  • Entertainment packages
  • Cash rebates

So when selecting a business credit card, consider which has the best rewards package. For example, if you don’t travel for business, cards with cash-back rewards are better.

To find which business credit cards are best for you, check out Numo for detailed credit card reviews.

Track Spending

Using your business credit card for business expenses also lets you track your expenses easily. You can find your expenses in one place, enabling you to have better insights on how much you are spending.

You can also separate your business and personal spending. This feature is highly useful for tax reasons. You will commonly see an end-of-the-year summary, which shows your spending in different categories.

Know and Follow Your Limits

Talk to your credit card provider and know your credit limit so you won’t overspend. It’s also a good idea to ask them to lower your credit limit to a level that’s still manageable.

You can also try self-imposed limits. Use your card until you reach that limit. And when you do, put your card away until the start of the next month or until you pay your bill in full.

If you do this, you’ll stay on budget while maintaining a larger credit limit you can use in case of an emergency.

Use Your Card for the Big Stuff Only

Instead of using your card for small purchases, which has its pros and cons, use your card for pricier items only.

After using the card for big and important purchases, pay it off over a few months following a strict timeline.

When you do this, you must carefully plan the timeline and follow it. Also, it’s wise not to use the card for other purchases until you have paid off the big purchase in full.

Shop Around

Check all of your credit card options before you sign up for a specific business credit card provider.

If you’re the business owner, select one that’s right for your business. Many corporate credit cards offer similar features and benefits, but they don’t work all in the same way. Some provide sign-up bonuses, while others require you to pay the balance in full each month.

Check your options and choose the card that makes the most sense for you and your business.

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