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Credit cards are important not only for personal use but also for businesses. There are many advantages of using credit cards for businesses. First of all, they are very useful when you need to make any impromptu purchase of business supplies. These cards also help you establish a strong business credit that will prove to be very useful when you want to apply for a business loan to expand your business. You can also track the expenditure easily with the help of the statements issued for these cards. However, the key to holding them for long without any concerns is by using them wisely. Let us take a look at a few tips that can help you use them wisely for a long time.
If you want your business credit card to be approved at the earliest, then, you apply for it from a bank you have been a member of from a long time. However, ensure that you have a good track record with them; else there are chances of them rejecting your application form at the onset. Affix your credit history to substantiate the fact that you can handle finances responsibly.
One of the mistakes that business people do is that they apply for more than one card assuming they will have use for it. Do not hold more than two credit cards since it will become difficult for you to manage your credit history. You will also not be able to balance the expenditure on both of them effectively.
Never ever use your business credit card for personal use, even if you are the proprietor of the company. Remember, you will need to show the statements while filing year end taxes. You should be even more careful if yours is a home based business. In such cases, there is a very thin line differentiating personal and professional requirements. Hence, be careful while using the cards.
Opting for cards that offer various rewards will be profitable for your business needs. If you opt for cards that offer discounts in hotels, then, you can use it when you take your team out for a business lunch. If you are in a business that entails frequent travelling, then, you can also opt for the ones that offer air miles and get discounts on air travel.