Items Not to Charge to business Credit Cards
Being a boss is known to attract a good number of benefits. Such will often include company credit cards that attract better rates and even rewards. However, power begets responsibility. It is valuable for you to be familiarized with what has to be charged on this business credit card and what needs not be. There are a number of personal expenses that you should not be tempted to include on such credit cards. This will more than often comprise the following.
Seek to ensure that personal expenses are barely considered whenever you are on a business trip. You will find that a good number of modern lenders tend to evaluate the payment history on your credit. This does consider every item that the card has paid for. You will note that they can easily reject your business loan application after considering these factors. This is mostly in the event that you have been relying on it for personal expenses. Seek to make sure that any additional personal expense is put on your personal credit card in the event that you are on these trips. We have certain cards at your disposal in this pursuit. 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. You will actually note that so many credit companies have run away from this. You will actually realize that such investments tend to be quite costly. 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 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. There will be an increase in the utilization ratio. This will definitely escalate your interest rate in the long run. Aim at keeping your personal expenses distinct from the business loans.