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Five Ways to Make the Most of Your Business Credit Card

Are you looking for ways to maximize the way you earn points or rewards with your business credit card? If so, you’re in luck! Here are five ways to make the most of your business credit card by doing the things you already do to run your business every day.

1. Use it to build your credit profile

One of the best ways to use your business credit card is to build your credit profile. A strong credit profile can help you get approved for future loans and lines of credit you might need when you're ready to grow your business quickly and need financial help to make that happen.

Some business accounts will get reported to the consumer side of the three major reporting bureaus (Experian, Equifax, and TransUnion), which can be an excellent bonus if you're also trying to build your personal credit and have tied the business card to your social security number. However, not all cards report to the same factions of each agency, so research before applying so you know which credit report will be affected: yours or your business's.

2. Use it to earn rewards

Another great way to use your business credit card is to earn rewards for the things you already buy. Many business credit cards offer rewards such as cashback, airline miles, and hotel points on purchases like shipping costs, cell phone bills, and popular business software and apps.

3. Use it to fund your business

If you need to fund your business by buying supplies or paying for professional services, a business credit card can be a great option since many popular corporate credit cards offer low interest rates and no annual fees.

However, don't get too caught up in charging things, or you can get into debt quickly. If you've made some mistakes overspending for your business, consider using a debt consolidation calculator to strategize how you'll get your business finances back on track.

4. Use it to extend warranties or insure expensive electronics

Some business credit cards will offer the option to automatically extend the manufacturer's warranty for things charged on your card, sometimes even doubling the warranty for free. There are also perks available on cards that will automatically offer insurance or replacement protection for electronics like cell phones or tablets should they get lost or stolen (so long as their monthly bills are paid using the card).

5. Use it for emergency funds

If you need a cash infusion quickly, your business credit card can be a great option if you only need funds temporarily and can pay it off before interest accrues. Some business owners have used their cards for making payroll or getting a last-minute vendor bill covered.

The bottom line

Business credit cards are a smart investment for entrepreneurs who can use them wisely. Make the most out of your card by utilizing these five categories of perks to help grow your business without doing anything other than what you usually do.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes

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