What To Look For In Business Credit Cards
Everybody needs credit and it is no different for a business.
When establishing a businesses credit the first step is usually
to get a business credit card. Business credit cards often
differ from credit cards for personal use. It is good to know
the difference between personal and business credit cards, as
well as what to look for in a business credit card. Your
businesses credit is as important, if not more than your
personal credit, so knowing as much as you can about it is
essential.
Knowing the difference between business and personal credit is
the first step to getting a business credit card. Most card
offers you get will be based on your personal credit and just
have your business name on them. What this means is your
business name will just get added to your personal credit report
and this card will report to your personal credit. You will not
be building credit for your business. In order to figure out if
the credit offers you are getting are like this or not is to see
what credit agency they report to. The business credit agencies
are: Dun & Bradstreet, Experian Business, Equifax Business,
Business Credit USA. If they report to anyone else then it will
be based on your personal credit. You should ask if they have a
business card you can get. This will allow you to build your
business credit.
Besides starting a business credit report a business credit card
can help your business with other things. You will be able to
keep business and personal finances separate. You can track your
business purchases easily and have a nice detailed record of
everything you buy or pay on your credit card in your monthly
statements. The biggest benefit of all this will come at tax
time when you do not have to sort through a mixed mess of
personal and business paperwork.
Other things to look for in a business credit card are similar
to what you would look for in a personal credit card. You should
compare fees and interest rates. You should also consider how
you will use it and any benefits offered by the credit card
company. It is important to shop around and look for the card
that will work best for your business.
A business credit card can be great for both you and your
business. You can begin to build a credit history for your
business and keep your finances organized. To get the most out
of a business credit card you should always make sure it is
reporting to the business credit agencies and is separate from
your personal credit record. You should shop around for a card
that has good fees and will suit your business. Looking for a
business credit card is a lot like looking for any other credit
card, but it is important to remember it is for business not
personal use.