Are you a business credit card holder? If yes, did you know that using your business credit card at the wrong locations can badly affect your credit? The consequences can prove to be damaging. For instance, your credit card issuer may decide to cut down your credit limit, increase your rates and fees, and in some cases, terminate your account.

So which locations should you avoid using your business credit card? Unsafe locations include bars, pawn shops, strip clubs, marriage counselling companies, thrift shops, psychotherapists, online gambling sites, etc. One business owner reports that his credit card limit considerably dropped because he was using his business credit card at stores where people with bad credit shop. Apparently, paying for these kinds of services makes you a credit risk in the eyes of credit card companies.

While it is no secret that credit card issuers do monitor credit scores, a lot of people are still not fully aware that their “behavior score” is being monitored as well. That’s right. Banks can actually make judgements of a person’s credit worthiness based upon spending habits. If you are someone who frequently visits strip clubs or casinos, you may be regarded as a high risk customer.

According to a survey conducted by the Federal Reserve in 2010 reveals that credit card issuers review the spending habits of 35 million cardholders each month. The result shows that some cardholders have been penalised with a reduced credit line because of poor spending behavior.

Indeed, credit card issuers today are more cautious in providing credit lines to customers and they are finding ways to distinguish good customers from high risk borrowers. Although many may disapprove of behaviour score monitoring conducted by credit card issuers, but for cardholders, the best thing they can do is to be more cautious about where they use their credit cards for payment.

Avoid using your business credit card at locations that can raise doubt about your financial stability. In fact, business owners are strongly advised not to use your business credit cards for personal expenses. Being strict about how you manage your business credit card brings many advantages. For example, you can monitor your business spending more easily; the risk of bad debt is minimized; you can avoid extra credit card fees; and you can protect your credit limit.

See to it that all bills you charge to your business credit card are officially for business purposes. And in case you do need to pay a marriage counsellor’s service or you would like to unwind in the casino, it will be much safer if you will use cash instead of credit. You may feel that it’s not fair for credit card companies to slash off your credit line just because you are attending marriage counselling or that you played poker at the casino but if you can avoid complications if you will not swipe your credit card, especially your business credit card on locations that are deemed questionable.

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Reward Credit Cards

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About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+