How Do Business Credit Cards Work?

August 8, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities

Business credit cards and personal credit cards work in similar ways. You’re given access to a revolving line of credit with a set limit based on creditworthiness. If you fail to pay your statement balance in full within the billing cycle, you will typically face interest on the unpaid balance and new purchases. Business credit cards are a great way to ensure that you keep your personal finances separate from your business finances and make it easier to differentiate the two when it’s time to do your taxes.

Having a business credit card can help you build your business credit score, which may increase your chances of getting more credit in the future. Small business credit cards have the potential to provide you with the capital you require to move in the right direction. Buying the items your business needs in its early stages can be possible with additional funds provided by a credit card.

You have the option to include employees as authorized users and give them credit cards to use, which will make it easier for them to track their day-to-day spending. This eliminates the need to reimburse your employees for business costs on their personal credit or debit cards. It can also be beneficial to track any fraudulent charges and pinpoint more precisely where they came from. You have the ability to use a business credit card for any expenses related to your startup, which include:

• Licenses
• Permits
• Insurance
• Research expenses
• Marketing costs
• Technology
• Taxes
• Utilities
• Office supplies
• Payroll

Apply for a business credit card and take advantage of $0 annual fees, cash back rewards and points for hotel and travel. Don’t miss out on these great perks that a business credit card offers. We believe these are the most popular business credit cards in August 2024. You can choose business credit card from the recommended list below.

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• Business Credit Card