Business Credit Cards
Small Business Credit Cards - Top Reasons To Apply Today
Let's face it, being a small business owner can be really difficult at times. Not only do you have to stay on top of the business side of things, you also have to actually provide a service to the customers. At times, it can be challenging - even overwhelming.
One tool that can really assist a small business owner is a small business creditcard. Now, you may not immediately think of a credit card as a tool that can help you run your business, but I'm going to explain how it can be. If you haven't already done so, here are some reasons why you should consider applying for one:
1. A small business credit card gives you an easy way to keep your personal expenses separate from business expenses. I can't tell you how much easier this makes things when the tax man cometh, but I would never go back to using one card... ever.
Business Credit Cards
2. With your small business creditcard, you won't need to worry about reimbursing employee purchases anymore. When you send an employee out to make a purchase for your business, simply send them with your card! Piece of cake.
3. Your new creditcard will allow you to being building a credit history for your business and you can even earn rewards for using it. Applying for a small business rewards card will not only earn you "perks" such as airline miles, online shopping credits, gasoline, etc... it will also build the credit rating for your business (assuming you pay the bills on time!).
As a small business owner, a credit card will really come in handy. Not only will it make things easier on you from a management standpoint, you'll also enjoy some added perks to becoming a cardholder. Highly recommended for anyone who is starting a small business or already owns one.
Business Credit Cards
Frequently Asked Questions
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QUESTION:
Is it illegal or some type of fraud to use business credit cards for personal use?
I'm not talking about maxing them out, but using them instead of personal credit cards, say, if the business closed. The business cards don't show on the personal credit report.A business that you personally owned as a sole prop; not a corporation or another company you work for.
After looking at several sites, it appears it coulbe be construed as fraud, but for sole props, there is really no way to prove it. The credit companies don't police it and don't care as long as payments are made.-
ANSWER:
I wouldn't worry about it. As long as you make the payments it really doesn't matter what you use the cards for. Fraud is extremely difficult to prove to begin with, so imagine a credit card company trying to prove what you purchase is not related to your business. Its not going to happen. With a small business, to some degree, everything is business. Buy what you want, make your payments = no problems whatsoever.
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QUESTION:
What business credit cards are not attached to my personal credit?
Hello, I am trying to find out how to build my business credit without being attached to my personal credit score. I would like to know if anybody has information regarding what credit cards are available to do this. I would love any free information or links to sites that can tell me how to build my business credit. Thanks!!-
ANSWER:
People think once they screw up their own personal credit the next thing they can do is have a business and get credit that way but it doesn't work like that. Your personal social security number and credit rating are going to be used to extablish credit when you start out and even well beyond.Added
Reality is as a beginning business you are NOT going to go out and secure credit using an unknown/ unestablished business name or identifying number!
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QUESTION:
What is the difference between personal credit cards and business credit cards?
I have a few personal credit cards and I want to consolidate them. I also am self-employed, but I dont' have a business credit card; although I get LOTS of ads for them in the mail. I've always wondered, what is the difference? Are there different rules or fees? Can you only use them for business purchases? Do you have to spend a certain amount to keep them?Any advice appreciated...
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ANSWER:
Personal credit cards are issued to "Persons" and the person is the respondent.(Owes the money.) The business card is issued to a "Business" for the purpose of charging items related to or for that business..Normally business cards are fully paid on a monthly or quarterly basis and are never used for personal things. The respondent is the business (Although a person is normally required to sign for and guaranty the debt on behalf of the company.) If you are a small business, and have a business tax ID number and business license, there may be tax advantages to using a business credit card for payment of all your business related items..Easy way to keep track of your expenses, plus you will get a monthly or quarterly statement from the credit card company which is your receipt for monies spent for your business....Good Luck !
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QUESTION:
What do i do with business credit cards after the business is closed?
Would canceling them impact my credit report? Do companies ever change them to personal cards? I only have two with very small limits which i'm planning to pay off very soon. I wouldn't mind keeping the cards but since I no longer have the business i assume this would be illegal?-
ANSWER:
There is nothing illegal about keeping those cards, for as long as you can afford to pay your monthly dues. But you can request the bank to convert the same into a personal account because it can be done that way as well. Canceling that card is also an option, but doing that you will have to pay the total existing obligation because a credit card company will never work on your request if the balance have not been zeroed out. Your card cancellation with them, however, will have the effect of barring you from any future re-application. But there are other banks,so it's not a big deal.
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QUESTION:
Do credit card companies send small business credit cards to people who do not own small businesses?
Is it normal practice for credit card companies to send, pre-approved or not pre-approved, small business credit cards to people who do not own small businesses? Have you ever received one?-
ANSWER:
I have received several and I can never figure out why. I don't need any more credit cards, much less business ones. I don't run a business.
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QUESTION:
How can I know if my business credit cards are personally guaranteed?
Hello,How can I know if my business credit cards are personally guaranteed? I don't have copies of the original applications and I don't want to call the cards to ask (because it may impact me negatively). Is there something in the Terms & Conditions of the cards that I should look for?
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ANSWER:
Is your business a corporation? Does it have a D&B rating?If not, my guess is that you personally guaranteed those credit cards.
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QUESTION:
How do you get defunct business credit cards taken off my credit report when I don't have acct # anymore?
I recently got my credit report for the first time. There are credit cards still open to defunct businesses (Casual Corner for example). It's not a bank card (VISA, Capital 1) - but a personal business type of credit card. I no longer have the account numbers. Who do I contact to try to get these taken off my credit?-
ANSWER:
You don't. This is factual credit history.
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QUESTION:
Where can I find business credit cards without a personal guarantee?
I am looking for business credit cards that don't require my social security number.-
ANSWER:
I completely understand your question, as it appears no one else who has made comments has. I have a score of 812 and I am aiming to reach 850, which is the highest possible. I own 3 businesses and have 7 business credit cards and lines total. I want to add a business credit card or line to my third business to simply build business credit. But I do not want my personal score to be affected by another stupid credit inquiry. So far I have found that only Walmart offers a credit card without a personal guarantee. Other than that I cannot find anything.
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QUESTION:
Hi, when I dissovle a business do I have to cancel my current business credit cards? What happens if I don't?
Hi, when I dissovle a business do I have to cancel my current business credit cards? What happens if I don't?Thanks.
Ok, my business would not be able to pay them, but I could continue to pay it right or am I wrong or?-
ANSWER:
Yes definitely close them. Leaving them open can only lead to problems.
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QUESTION:
How come "business account" credit cards don't help your credit?
I have a business credit card with a high credit limit, but this account does not show up on credit reports from all three crediting agencies. I asked the card issuer why this is, and they tell me that it will only show up if i have negative history (late payments, bankruptcy) but it does not show my on time payments or any sign i even have this available credit line in my name. I am trying to build good credit history, but this doesn't even add into the evaluation of it, and it is the best thing i have going right now. Any one know why this is?-
ANSWER:
The same reason an authorized user on a card can be negatively affected if the card holder messes up.It doesn't make sense but that's how they do it.
If the company runs into problems they have to have someone to turn to and that's you. Being able to burn you if things go bad is their only leverage.
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QUESTION:
Can I file bankruptcy on business credit cards?
I own a small business and have several credit cards which were opened in the business name as well as my name. Can i file bankrupt on these cards with the business still operating. The business is in my hubby's name, I am just an employee which I do not get a paycheck. I have my daughter working for me and pay her under the table. Will this affect my hubby, he is not listed as co-signer or authorized user of the cards.-
ANSWER:
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QUESTION:
How do 0% APR works for business credit cards?
I am planning to get a business credit card but what can I get if I choose the 0% APR?-
ANSWER:
If you currently have multiple business credit cards and is are trying to keep up with your existing balances with each card, transferring them over to a zero interest business credit card will help you get out from under your debts more quickly and easily. 0 APR business credit cards do not impose an interest rate on the balances you transferred over.
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QUESTION:
Are small business credit cards hard to qualify for?
I am about to start my own LLC and need a small line of credit. Instead of trying to get a business loan, I was thinking of a small business credit card. I only need about 00.00. Does anyone know how long a company needs to be in business to qualify for a decent small business credit card?-
ANSWER:
I have heard two years, but I got one after a year or so. Be prepared to enter personal information, too. That can help your chances of getting approved.There are some good FAQs here:
http://www.e-wisdom.com/credit-cards/business-credit-cards.html
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QUESTION:
Why do companies send business credit cards to individuals?
I accidentally applied for one. Now I have a business credit card, but no official business (i.e. no LLC or anything). Can I use the credit card? Of course I will always pay my monthly balance and abide by the agreement. If I can't use it, why would they send it to me?-
ANSWER:
Oh, they don't care. It's all under your social security number. They just change the marketing to get you to apply. And if there was a market for Charity credit cards they'd send you an app. for one of those too.I LOVE credit stuff and questions and answers. Here is one of my favorite sound bytes from a financial guru.
Before you do ANYTHING else, listen to this. Scroll down and click "Listen to Dave". JUST LISTEN.
http://www.daveramsey.com/tdrs/index.cfm/2007/9/17/Getting-rich
This one audio clip of his CHANGED MY LIFE when I heard it.
Listen to this man for free, on the radio or online. This is like getting financial wisdom from Bill Gates except this guy has a national radio show.
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QUESTION:
Do business credit cards check the employee's credit info?
I filed for Chapter 13 in 2004 and paid it off. However, my company want's to get me a business credit card and I'm wondering if my Chapter 13 history will deny it?-
ANSWER:
If your company wants to provide you with a credit card in order to keep track of expenses - then they have to put it in their name - with you as an authorized user. You use the card, they get the bill, and their bookkeeping department pays the tab. Never use your own credit for your employers expenses.
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