How to Manage Business Credit Cards Effectively

Some entrepreneurs may initially feel hesitant to acquire a credit card for business, thinking that they can always use a personal credit card for business financing. However, business credit cards offer certain features that are not found in standard credit cards. Provisions such as annual account summary report, employee credit cards, and business credit reporting are meant to simplify your life in managing a business.

If you’re worried that getting a business credit card can put you at risk of bad credit, it can actually protect your personal credit from damage.  In this article, we present effective small business credit card management tips to help business owners make the most out of this simple plastic finance tool.

Don’t fill out multiple applications. Do not try your luck on getting approved by applying to different business credit card issuers at the same time. First of all, too many inquiries can lower your credit score. Second, managing multiple accounts can prove to be a big challenge.

 

Don’t be late. Whether you own a standard credit card or a business credit card, timely payment is crucial not only to avoid the debt trap but to protect your credit history as well. Take note of your due dates of payment and if possible, pay off your charges as early as you can.

 

Take advantage of the grace period. Most credit cards for small business offer at least 21 days of grace period which gives you more time to pay off charges without incurring the additional interest rate cost. This is the smartest way to manage your credit card, especially if you are using rewards business credit card.  Take note that reward credit cards generally have higher APR than non-reward cards so if you plan to carry monthly balances, a reward credit card is not a practical choice for you.

 

Submit your payments online. Many credit cards today allow online payment so it can save you a lot of time and additional costs if you pay off your charges from your computer. It also gives you the opportunity to submit your payments on time, without being late.

 

Skip the Cash Advance option. The cash advance feature allows business credit cardholders to borrow cash from their credit card by withdrawing from the ATM. While this may seem to be a convenient way to get through cash crisis, it’s important to remember that cash advance transactions are automatically charged with interest rates, which are often higher than the rates applied on purchases and balance transfers.

 

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 business credit cards

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general