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Using a business credit card is one of the wisest steps one can make. Financial management can be enhanced by tracking your expenses on a business credit card. The advantages of using your credit card far out weigh any disadvantages and can help a small business achieve success.
Using a credit card will help you build credit. The monthly expenses of your business are part of your normal budget. Charging these expenses on a card can only enhance your credit status. Paying off these charges first will build and establish your credit. As your credit line increases you will have an immediate credit line if an emergency arises. If funds are needed from a bank your good credit score will make it easier to get a loan.
Your monthly statement will give you an excellent record. There is no guessing or looking for a misplaced receipt at the end of the month. Some card statements will even break down the expenses by category on a quarterly basis, American Express is one that does this.
The card that you decide to use may also give you rewards, travel miles or cash back. These kinds of cards should be chosen with some thought. Pick one that will fit your needs. If travel miles will help you the most then look at the options these cards will offer. Cash back cards are always a help to pay the monthly statement or a reward for your personal use.
When you are shopping for a card, look at the APR. If your balance is paid off each month this will not be an issue. If you will be carrying a balance for a short time then try to get the best APR possible. Interest rates can eat into the advantage you might gain.
There are many ways a business credit card can enhance the financial stability of your business. Choose a card that best meets your specific needs and apply for one today.