If you're a small business proprietor, you might be looking for the very best deal on a small company credit card. But the best fees and rates of interest won't help you if you make these small company blunders. Here are five mistakes to prevent when using your small company credit card. Mistake #1: Mixing Business with PleasureYou wouldn't anticipate your boss to foot the bill for the car payment, would you? Along individuals same lines, you shouldn't use your company credit card to cover personal costs. You'll take your business budget more seriously if you are using your credit card only for company expenses. Plus, by keeping your dealings separate, you'll avoid a tax filing nightmare at the conclusion of the year. Mistake #2: Not Benefiting from Payment and Accounting FeaturesSome small business credit cards come filled with financial software that helps you monitor your expenses. Others summarize and make a list of your yearly expenses for easy taxes preparation. If you
don't take benefit of these features, you'll find yourself sifting via piles of receipts at tax period. Also, most small company credit cards offer online payment, the industry convenient way to manage your financial situation. Mistake #3: Not Using Your Personal BankThe credit market has spikes as well as dips. During times when credit is actually scarce, you might have an easier time getting approval for any small business credit card through your personal bank. When they know you've obtained a demonstrated history of good monetary habits, creditors will be more prone to lend to you. Always apply first at a financial institution you've got a good relationship with. Mistake #4: Abusing Cash AdvancesYour business credit card might have a 12% interest rate, but that rate will likely rise when you take out payday loans. Cash advances are subject to different interest rates than regular purchases. Check your card's conditions and terms before you cash out; your rate could rise
to 25% or more! Mistake #5: Applying for Too Many CardsLots of available credit is a great thing. However, if you apply for too many cards in a brief period of time (six months to the year), your credit will suffer. The reason why? Because lenders will wonder about your spending habits and whether you intend to max out those cards. Rather, apply for one or two cards a year to develop your available credit. More than which, and you might harm your credit instead of help it. When they're managed nicely, small business credit cards are a terrific way to handle your business expenses. Some even offer cash return rewards or airline miles.
BestCreditCardRatings. com, where one can compare Credit Card offers and make an application for credit cards online.
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