What You Need to Know About Getting A Business Credit Card

business-credit-card

There is so much information that people are unaware of when it comes to business credit cards. Do you really need one if your business is small? Can you get one? Is this just going to mean more debt on my behalf if I get one and use it for my business expenses as it applies to my personal credit? What’s the deal? Some people are a little more in-the-know than others, but it doesn’t change the fact that there are still many of us in the world who might have a small business and no idea what we might do about a business credit card. I know, for one, that it’s a great idea to obtain a business credit card if you have any type of business, but it’s not a great idea to go into it blind.

There is no such thing as a stupid question save for the one that is left unasked. However, we have a list of the most common questions business owners pose regarding their business credit cards. We want to share those answers with you so you are educated, aware, and confident before you apply for a business credit card of your own.

What’s My Credit Limit?

The one question so many business owners have is about their credit limit. They want to know if it will be high, if it will be low or if it will be something that they can even work with. After all, who wants to apply for a business credit card and try and make business purchases and pay for business-related items with a low limit? It’s not really worth the effort to many who assume they might not qualify for much of a credit limit.

The good news is that many lenders are perfectly well aware that business owners tend to charge far more than the average consumer, and they are happy to provide businesses with a higher initial limit. For the most part, you might expect an initial credit limit of anywhere from $10,000 to $25,000 depending on your credit score and your business. This makes running a new or small business easier than you thought possible in the beginning.

Does My Business Credit Card Affect My Personal Credit?

The short answer is no. Sadly, it’s not just a plain no; there are a few stipulations in place regarding this answer. No, your business credit does not affect your personal credit, but your personal credit does affect your business credit. For instance, you do have to apply for a business credit card, and creditors need something to reference when determining whether or not you are a viable candidate. They will check your personal credit history to find out if you are the kind of person they want to issue credit to. Even if you have a lot of personal debt, being someone who pays it on time and is responsible with your finances otherwise will show favorably when you go to apply for a business credit card.

Am I Liable for Business Debts?

This is another gray area. If your business credit card is a commercial liability, it is one that can allow you to forgo any personal responsibility for your business debts. This means if your business goes under and you are unable to pay those bills, your personal possessions will not be seized or taken from you in any way. You can be sure you will be able to live and breathe just a bit easier in this situation than you will if you have a business credit card that is joint and several liability.

This one means you are responsible for your business debts. What you want to do is know what you are responsible for, what your rights are, and how you will go about handling your business credit when the time comes. Know what is what, and don’t sign anything until you are certain that you can protect yourself and your family, as well as your business.

Can I Get Cards for My Employees?

You can, and you should. The best news is that if you have employees that frequently go on business trips for you or make purchases for you while running errands, you can even dictate the amount they can spend on their card without worry that they will go crazy on your dime on a bad day (not that you would ever hire someone like that, I’m positive). You can apply for additional cards for your employees, dictate the limits and receive a detailed account of what they spend each month. It’s a wonderful way to make business just a bit simpler and lot more enjoyable for you when the time comes. It’s also a great way to minimize the amount of time you have to spend going through expense reports and figuring out who spent what and who needs a refund for what.


Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Xuan Yong
10 Things You Didn’t Know About RigUp CEO Xuang Yong
Deposit Solutions
20 Things You Didn’t Know About Deposit Solutions
Martin Saidler
10 Things You Didn’t Know About Numbrs CEO Martin Saidler
Grove Collaborative
20 Things You Didn’t Know About Grove Collaborative
Intel
10 Stocks to Consider if You Like Intel
Stocks
Is Baozun (BZUN) Stock a Good Investment?
Honda
10 Stocks to Consider if You Like Honda
Boeing
10 Stocks to Consider Instead of Boeing
Buckingham Palace
The 10 Most Expensive Mansions in the World
Downtown
The 20 Best Places to Live in Memphis
Aruba
The 20 Best Places to Live in the Caribbean
Chapel Hill
The 20 Best Places to Live in Raleigh, NC
Bahia de Banderas
The 20 Best Things to Do in Puerto Vallarta for First-Timers
the fullerton hotel
The 20 Best Hotels in Singapore
Summit A Dolce
The 20 Best Hotels in Cincinnati
Merlion Park
The 20 Best Things to Do in Singapore for First Timers
1955 Jaguar D-Type
The Super-Rare 1955 Jaguar D-Type: A $7 Million Car?
Ferrari F50
The 20 Best Manual Transmission Sports Cars of the 90s
The ‘Cruise Origin’ by General Motors: 10 Things You Didn’t Know
2021 Jeep Gladiator Mojave
10 Things You Didn’t Know About the 2021 Jeep Gladiator Mojave
Aragon Sports Machine Quartz
The 20 Best Aragon Watches of All-Time
Daniel Wellington Classic Glasgow
The 20 Best Daniel Wellington Watches of All-Time
Dan Henry 1963 Racing Chronograph
The 20 Best Dan Henry Watches of All-Time
Doxa 1200T Professional
The 20 Best Doxa Watches of All-Time