To any company owner, a business credit card is a must-have. Business credit cards will help you create business credibility and rack up valuable rewards as well as being a convenient source of cash. Therefore, if you have been carrying the same business credit card for years, it is time to question whether that piece of plastic still suits you best. Here are some reasons for you to have a new business credit card.
- High-Interest Rates Are Getting You Smashed
The expression “It takes time to make profits” is all too real in today’s business world. If they make purchases for new inventory, seasonal hires, or machinery, many businesses depend on their availability to capital. With these kinds of cash infusions, many business owners resort to credit cards. Still, if the specific card you have has a high-interest rate, almost every transaction can be a costly proposition.
When you find yourself paying a high-interest rate on the balance of your credit card, then move your balance to a card such as Chase’s Ink Cash Business Card. This cash-back business card comes with 12 months of a 0 percent introductory APR, no annual fee, and a generous rewards program.
- Your Credit Limit Is Too Low
When you still find yourself maxing-out your current business card, it may be time to apply for another credit card with a higher credit line. Spending your credit card up to the limit can affect your credit score, as it means you will have a very high debt-to-credit ratio, also known as your credit-use ratio.
First, you can speak to a representative to see if the credit card issuer you are interested in will be expanding your credit line. If not, you might need to apply for a new credit card for your company. In opening a new credit line, you’ll not only have access to more capital to help your company expand, but you’ll also be able to lower your credit-use ratio.
- No Customary Business Credit
If you have never had to take out a business loan for reasons such as office supplies and benefits, employee salary, and so on, building good business credit is a good idea. If you are in a position where you need to take out a loan for your company, getting years of good credit history for your business can help gain approval at the lowest available interest rates. A company credit card is the fastest and simplest way to start building business credit.
Any company credit card opened with your tax identification number will assist you in doing so. However, it is also possible that the application will be dependent on your credit, which could pose a problem to business owners who do not have significant personal credit. One card in this situation, which would be a good option for customers, is Business Credit Blueprint By Brian Diez’s financial experiences for Industry. The card has no annual fee and offers 1 percent cash back on all purchases; applicants are most often accepted even with minimal credit or equal credit.