Business Credit Cards: Expenses to Avoid
Being a boss is known to attract a good number of benefits. This will more than often take into account company credit cards that come with better rates as well as 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. There are a number of personal expenses that you should not be tempted to include on such credit cards. This will time and again consist of the following.
You will learn of the personal expenses during business trips. You will find that a good number of modern lenders tend to evaluate the payment history on your credit. This does account for all the items that have been paid for by the card. They will have to evaluate these factors before choosing to deny you the loan. This, in most cases, is after you have misused the business credit card for personal expenses. It is important for you to ensure that any extra personal expense is charged on your personal card whenever you are on such trips. There are a good number of credit cards that can serve this purpose. You will also need to keep away from using these cards for cryptocurrency investments. Even though you might find investing here being quite a gift to you, it could easily end up hurting your company at long last. You will actually note that so many credit companies have run away from this. You will also note that these investments tend to be quite large. This can actually push you into too much debts at the end of the day.
While cash advance can sound quite attractive, it can put you into so much trouble in the long run. You will seldom be given a grace period. This means that the interest will start piling up as soon as it is advanced. You will also witness that it tends to draw a relatively high interest rate. You also need to keep in mind that there is a transaction fee attracted 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. We have a couple of luxuries such as flashy cars that you should always keep away from. This is due to the fact that your credit score will be compromised at the end of the day. The utilization ratio will certainly rise. This is what will lead to a higher interest rate being charged. Aim at keeping your personal expenses distinct from the business loans.