Business Credit Cards: Expenses to Avoid
we have a good number of merits that come with being a boss. Such will often include company credit cards that attract better rates and even rewards. However, power begets responsibility. It is important for you to understand what needs to be charged on your business credit card and what cannot be. We have certain personal expenses that you need to aim at not including on these business credit cards. This will often include the following.
It si imperative for you to avoid charging personal expenses when on business trips. It is not uncommon for present day lenders to go through the payment history on your credit card. 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, in most cases, is after you have misused the business credit card for personal expenses. Seek to make sure that any additional personal expense is put on your personal credit card in the event that you are on these trips. There are a good number of credit cards that can serve this purpose. 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, so many credit companies have chosen to restrain from this. You will also learn that these investments tend to require so much. This can actually push you into too much debts at the end of the day.
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 certainly be quite costly for your business in the long run.
You will also need to avoid getting pricey purchases with this card. Seek to ensure that you do not get luxuries like flashy cars are not charged to these business credit cards. This is due to the fact that your credit score will be compromised at the end of the day. The utilization ratio will certainly rise. This is what will lead to a higher interest rate being charged. Seek to ensure that personal and business loans do not come to mix.