Items Not to Charge to business Credit Cards
we have a good number of merits that come with being a boss. This will more than often take into account company credit cards that come with better rates as well as rewards. However, power begets responsibility. It is important for you to understand what needs to be charged on your business credit card and what cannot be. There are certain personal expenses that you should purpose to avoid including on these credit cards. This will often include the following.
It si imperative for you to avoid charging personal expenses when on business trips. It is not uncommon for present day lenders to go through the payment history on your credit card. This does account for all the items that have been paid for by the card. You will note that they can easily reject your business loan application after considering these factors. This is especially if they find that it has been used on 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 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, the many credit card companies have banned this. You will also note that these investments tend to be quite large. This might actually subject you to too many debts at the end of the day.
Even though a cash advance can be quite appealing to you, it might expose you to great trouble at the end of the day. There will barely be any grace period. This is to say that the interest rate will start accumulating once the loan has been approved. You will also note that the interest rate charged will often be quite high. You need to remember that there is a transaction fee charged too. This can certainly be quite costly for your business in the long run.
It is also valuable for you to keep away from using these cards on luxurious purchases. Seek to ensure that you do not get luxuries like flashy cars are not charged to these business credit cards. This is due to the fact that your credit score will be compromised at the end of the day. There will be an increase in the utilization ratio. This means that you will suffer a higher interest rate too. Always endeavor to separate personal from business loans.