In this information age, it’s easy to come across plenty of false, or semi-false, information. The topics of finance, business and credit cards are no exception and sometimes it’s hard to know what is true and what isn’t. Here are the top three misconceptions that people have about business credit cards.
More Credit Cards Will Lower Your Credit Score: There are no shortage of opinions on the “perfect” number of credit cards for a person to have, though most people find that they can maintain good personal credit, and spending habits, with three to four cards. For a business, you’ll certainly want a separate card, but to start off with, one should suffice. While the card will be in your name, unless you have bad credit and a dozen other cards, there will likely be little harm done to your credit score by taking out a card solely for business purposes. As your business grows, you can request additional cards on your account for employees to use, but it will still be one account.
Business Credit Cards Aren’t Connected to You Personally: If you are just starting your business, the credit card issuer will look more closely at your personal credit history before issuing you a business credit card. This is because your business has no credit history and you will be the one who is using it. If you are good with your personal credit, you’ll likely be good with handling your business credit. Additionally, some credit cards, while issued to the business, do hold the signer personally liable for debts. Be sure to understand your agreement with the issuer.
A High Line Of Credit is Bad: Actually a higher line of credit is good for a business credit card since you may be putting more on it than you do with your personal card. Even if you only use a small amount of the limit, it’s good for your credit score since you are using less credit than you have, which is a good thing in the world of calculating credit scores.
A business credit card is a useful resource to have whether you are just starting out or have been running a business for years. Let us help you find the best credit card for your needs at UnsecuredBizLoan.com. We specialize in helping business owners find solutions to their financial needs and are here to help whenever you need us.
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card