we have a good number of merits that come with being a boss. This will more than often take into account company credit cards that come with better rates as well as 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. There are certain personal expenses that you should purpose to avoid including on these credit cards. This will often include the following.
You will learn of the personal expenses during business trips. You will learn that most modern lenders will often look at the card’s payment history. This does consider every item that the card has paid for. They will have to evaluate these factors before choosing to deny you the loan. 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. In as much as you might be feeling quite lucky to invest in cryptocurrency, it might end up causing great harm to your business at the end of the day. 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 might actually subject you to too many 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 is to say that the interest rate will start accumulating once the loan has been approved. You will also witness that it tends to draw a relatively high interest rate. You will also realize that this advance will time and again draw a transaction fee as well. This can certainly be quite costly for your business in the long run.
It is advisable for you not to use these business credit cards on expensive items. There are various luxuries like flashy cars that you need to avoid on credit cards. This is as a result of the way your credit score will be affected in the long run. The utilization ratio is likely to escalate. This means that you will suffer a higher interest rate too. Always endeavor to separate personal from business loans.