How Commercial Credit Cards Can Help Business Credit Scores

Credit cards are a convenient way to pay bills and purchase supplies on short-term financing. There are countless business credit cards available to choose from, finding the best one to fit your needs is crucial. Before picking one, consider the types of rewards they offer, interest rates, and other terms. For instance, if you find a card that offers 12-18 months of zero interest, you could buy a piece of equipment or larger purchase and pay it offer over the introductory period.

Here are some ways that credit cards help business credit:

  1. Keep business and personal expenses separate: Establishing a business credit card can help you keep personal purchases separate. It can offer tools for easily tracking expenses and staying within budget, plus when tax time rolls around you won’t give your accountant a headache trying to sort through all the mixed purchases. In order to open the card, you will need to provide your company name and most likely your EIN.
  2. Establishing business credit: Most business credit cards require a personal guarantee, but you can find accounts that only report to business credit (unless you go delinquent). Asking the creditor in advance can help you decide if you want to apply for that specific card. Make sure to understand the terms and their reporting procedures before opening the account.
  3. Building business credit: A business credit card is often the first line of credit that new business owners can qualify for. Therefore, they are a great tool in thickening your credit profile and building scores. After a few months of steady and healthy use, try and apply for a line of credit or terms with a vendor. Usually business credit cards only report to one, maybe two, of the bureaus. It’s important to understand that you’ll need to use other tactics to build up the other profiles.

Business credit cards usually offer better perks and higher rewards than personal cards – this is one of the biggest differences between them. Credit cards can help the business save money and, if used responsibly, will put you on the road to great business credit!


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