Being a boss is known to attract a good number of benefits. This will from time to time comprise getting company credit cards that come with favorable 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. We have certain personal expenses that you need to aim at not including on these business credit cards. This will often include the following.
It si imperative for you to avoid charging personal expenses when on business trips. You will learn that most modern lenders will often look at the card’s payment history. This does consider every item that the card has paid for. It is after considering these factors that they might decide not extending the loan to you. This, in most cases, is after you have misused the business credit card for personal expenses. It is important for you to ensure that any extra personal expense is charged on your personal card whenever you are on such trips. There are a good number of credit cards that can serve this purpose. It is also not advisable for you to use these cards on cryptocurrency investments. In as much as you might be feeling quite lucky to invest in cryptocurrency, it might end up causing great harm to your business at the end of the day. In fact, the many credit card companies have banned this. You will actually realize that such investments tend to be quite costly. This might actually subject you to too many debts at the end of the day.
In as much as cash advance looks quite appealing, it could land you into a mess at the end of the day. There will barely be any grace period. This implies that the interest will begin piling up upon the loan being given. You will also witness that it tends to draw a relatively high interest rate. You will also realize that this advance will time and again draw a transaction fee as well. This can actually be quite expensive for your company at the end of the day.
It is advisable for you not to use these business credit cards on expensive items. We have a couple of luxuries such as flashy cars that you should always keep away from. This is because they will often hurt your credit score in the long run. The utilization ratio is likely to escalate. This means that you will suffer a higher interest rate too. Seek to ensure that personal and business loans do not come to mix.