Business Credit Cards: Expenses to Avoid
we have a good number of merits that come with being a boss. Such will often include company credit cards that attract better rates and even rewards. You will however be subjected to certain responsibilities once you get power. Seek to ensure that you are conversant with what has to be charged to these business credit cards and what needs not to be. We have certain personal expenses that you need to aim at not including on these business credit cards. This will often include the following.
It si imperative for you to avoid charging personal expenses when on business trips. You will find that a good number of modern lenders tend to evaluate the payment history on your credit. This does include all that has been charged to the card. They will have to evaluate these factors before choosing to deny you the loan. This is especially if they find that it has been used on personal expenses. It is upon you to make sure that any personal expense is handled by your personal credit card in case you are on these trips. There are various cards that you can rely on for this matter. It is also not recommended for you to rely on these cards for cryptocurrency investments. While you might feel lucky by investing in cryptocurrency, it could easily hurt your business. 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 can easily plunge you into deeper debts in the long run.
While cash advance can sound quite attractive, it can put you into so much trouble in the long run. It does not attract any grace period. This implies that the interest will begin piling up upon the loan being given. You will also note that the interest rate charged will often be quite high. You will also realize that this advance will time and again draw a transaction fee as well. This can actually be quite expensive for your company at the end of the day.
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 due to the fact that your credit score will be compromised at the end of the day. The utilization ratio is likely to escalate. This is what will lead to a higher interest rate being charged. Always endeavor to separate personal from business loans.
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