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Credit Cards

8 Reasons to Use a Business Credit Card
Credit cards are fast becoming a business necessity. They're flexible, easy to use, convenient and offer users the ability to make purchases instantly, anywhere in the world.
We've spent some time analysing credit cards aimed at businesses and have put together a list of our top 8 reasons to use a company credit card.
- Easy tracking of expenses and purchases - Using a credit card for business purchases makes it easier to track expenses. The majority of credit card providers offer comprehensive expense reporting (both online and off) which can save you countless administration costs and a lot of hassle.
- No more petty cash - Petty cash used to be the most popular way to pay for small, incidental purchases but the days of the petty cash tin are well and truly over. These days it's more common for companies to make purchases online or over the phone. Providing key staff members with a credit card that's attached to a business account means you can make instant purchases and reconcile expenses quickly and easily. 3. Rewards and incentives. The majority of business credit card programs offer rewards and incentives for users. Organisations can save money on a variety of goods and services from petrol to air travel, insurance and other professional services.
- Build business credit - One of the most important reasons for applying for a business credit card is to build your business credit. This will come in handy if you need to take out a business loan in the future. Responsible use and a consistent payment history will be great assets to your credit rating.
- Separate business and personal finance - If you're a small business owner you'll know how important it is to separate business and personal finance. Having a business credit card will help with this division and will come in especially handy around tax time. Remember to keep your accounts separate and don't be tempted to make personal purchases on your business credit card (or vice versa).
- Large purchases or unexpected expenses - There may come a time when you need to buy supplies, make a one-off payment or pay a large bill. Business credit cards help you to make these one off payments quickly and are more convenient than applying for a business loan.
- Embrace the quiet times - Cash flow is a major concern for all businesses and even more so if you have employees or creditors that rely on your payments. A business credit card can help you cover the quiet times and the seasonal lulls.
- Say goodbye to cash - Having cash on-site or carrying it around with you is not a good idea. Business credit cards reduce the need for ready cash making your business less of a target for theft or loss.
If they're used responsibly, business credit cards can help you run your business better and even save you some money.
About the Author
Find more info at the credit card comparison website; Credit Card Researcher, inlcuding business credit cards. Australia's best credit card comparison website.
Is having a lot of credit cards, but only using them sparingly, bad for your credit?
I've opened a few credit cards lately, but don't plan on using them, only for emergencies. Will just having 4 or 5 credit cars available for my use somehow hurt my credit score, or credit in general for future loans I might want?
earth angel is completely false. never close an account because you dont use it. That will hurt you in 2 ways. The ratio of your total balances to your total credit limit makes up 30% of your score. For example if you have 2 credit cards with $5000 limits and you have a $2500 balance on each and also have two unused accounts with $5000 limits then you are using $5000 of your $20000 or more importantly 25% of your total available credit. Now if you close the two unused accounts then you only have $10000 of available credit and still have a total balance of $5000 so you are now using 50% of your total credit limit instead of 25%. This will drastacally hurt your score. Even if you have low balances closing accounts will still hurt your ratio. The other way it can hurt your score is if you close your oldest account. Ill explain how and why in the last paragraph.
It is also a misconception that having several credit cards hurts your score. This just isnt true, on the contrary if you can successfully manage several credit cards then it proves that you can handle large amounts of credit and will improve your score and chances of getting approved for future credit. Having several different types of open accounts is good too, for example- department store cards, cars loans, major bank credit cards, installment loans, and one gas card.
Keep all your cards open and use them wisely. Dont use more than 30% of your limit on any card and always pay on time. It is not really good to have unused accounts (even though it is still much better than closing them) so try to use your cards to pay for things you have to buy anyways like gas, groceries and utility bills. With time your score will go way up even if it is already fairly high.
The only thing you are doing that will temporarily hurt your score is that you opened so many accounts at one time. The average age of you credit accounts is a factor in your credit score so when you open several accounts all at once it pulls down that average. Also opening several accounts at once makes you look like you are desperate for credit which will also temporarily hurt your score, although the negative impact from this is likely to be offset by the fact that your ratio of total balances to total available credit will have improved.
The Credit Card Song by Old Man Pie




































































































