John Miller, Credit Cards Moderator
@john_miller
The point of a business credit card is to provide your company with access to funds, which can be important for seizing business opportunities or handling unexpected expenses. A business card can also offer rewards for purchases, and can help you track your business expenses.
What Business Credit Cards Are Used For
- Quick Access to Funds: Business credit cards provide a convenient source of funds, allowing you to make purchases, pay bills, or cover unexpected expenses at your convenience. They also come with higher credit limits compared to personal credit cards.
- Separation of Expenses: Keeping business and personal expenses separate simplifies accounting and helps maintain clear financial records, which is important for tax reporting.
- Rewards & Benefits: Business credit cards often offer rewards programs tailored to business needs, such as cash back on office supplies and travel rewards, which can help you save money.
- Building Credit for Your Business: Using a business credit card responsibly helps build credit for your business, which is important for securing future financing.
If you’re interested in getting a credit card for your business, you can check our editors’ picks for the best business credit cards on the market, to see which one better suits your company’s needs.
People also ask
What are the pros and cons of business credit cards?
The biggest pros of business credit cards are business-friendly rewards and perks, the chance to build business and personal credit, and higher initial bonuses than personal cards. The biggest cons of business credit cards are high interest rates, personal credit risks, and strict approval requirements. The pros of a business credit card will typically outweigh the cons if you use the account responsibly.
Pros and Cons of Business Credit Cards
| ... | Cons |
Can I use my business credit card for personal expenses?
No, you cannot use your business credit card for personal expenses, as most credit card issuers prohibit that practice. A personal expense here and there probably won’t draw any suspicion, but going overboard could lead to your account being suspended.
However, if you decide to use a business credit card for personal expenses, there are a few pros and cons you should be aware of.
Pros & Cons of Using a Business Card for Personal...
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