It’s easier to keep track of expensesYou won’t be building business creditYou’ll miss out on earning credit card rewardsMost business credit cards aren’t listed on your credit reportYou may be putting your business at risk Here are five reasons you should consider using a business credit card for business expenses instead of your personal card: 1. It’s easier to keep track of expenses
Even if you don’t own a business, you can get a business credit card for your side hustle. If you’re interested in opening a credit card, visit an online marketplace like Credible to compare credit card interest rates and fees. Although it may be easy to put business expenses on your personal card, you may be giving up certain perks that are unique to corporate credit cards. Plus, you may be missing out on some long-term benefits of using a business card instead.
WHY IT’S IMPORTANT TO HAVE A GOOD CREDIT HISTORY If you already have a credit card open in your name, it’s probably more convenient for you to put a business expense on it. Why go through the hassle of applying for a new credit card just for your business?
Just like building your personal credit score is good for your financial health, building business credit is good for your business health. Having a positive credit history can help you grow your business and establish relationships with your suppliers. When you use a personal credit card to make business-related purchases, it doesn’t help you build your business credit. This can hinder your ability to qualify for building leases or small business loans in the future. Learn how to qualify for a small business credit card. Visit Credible to compare card details, such as annual fees and rewards programs. 2. You won’t be building business credit
Also, using two separate accounts can make it harder for you to keep track of business profitability. Some business expenses are tax-deductible. One major benefit of using a business card over a personal card is that it’s easier for you to keep track of your spending Not separating the two can cause more work for you or your accountant when it comes to reporting expenses during tax time.
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