Expenses to Avoid on Business Credit Cards
we have a good number of merits that come with being a boss. This will more than often take into account company credit cards that come with better rates as well as 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 often include the following.
You will learn of the personal expenses during business trips. You will find that a good number of modern lenders tend to evaluate the payment history on your credit. This does include all that has been charged to the card. It is after considering these factors that they might decide not extending the loan to you. This is especially if they find that it has been used on 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. There are various cards that you can rely on for this matter. You will also need to keep away from using these cards for cryptocurrency investments. Even though you might find investing here being quite a gift to you, it could easily end up hurting your company at long last. In fact, the many credit card companies have banned this. You will also note that these investments tend to be quite large. This can easily plunge you into deeper debts in the long run.
While cash advance can sound quite attractive, it can put you into so much trouble in the long run. There will barely be any grace period. This implies that the interest will begin piling up upon the loan being given. It is also valuable for you to understand that the interest rate will be quite high for you. You need to remember that there is a transaction fee charged too. This might end up being relatively more unbearable for your business at the end of the day.
It is also valuable for you to keep away from using these cards on luxurious purchases. There are various luxuries like flashy cars that you need to avoid on credit cards. This is as a result of the way your credit score will be affected in the long run. The utilization ratio is likely to escalate. This is what will lead to a higher interest rate being charged. Seek to ensure that personal and business loans do not come to mix.