Every business owner should have a credit card. This allows you to monitor your business expenses from one place. You can also earn yourself points or get rewards from making purchases using your credit card. If you are starting your business, credit cards can help you finance it before you can get a business loan.

It is, however, not safe to put your business expenses on a personal credit card. Both personal and business credit cards are used similarly, but this does not make them the same. As a business owner, you should get a business card that offers different credit card services to help you expand your business.

A business credit card offers higher limit compared to a personal one. You are likely to incur more expenses when running a business than on your individual needs. As a business owner, you are bound to making a lot of purchases and using a business credit card allows you to have short-term financing.

It also helps you develop a business credit score. Your credit utilization rate determines your credit score. Numbers below 30% are considered to be healthy utilization rates. A high credit limit enables you to spend well under a healthy utilization rate that helps you to build your credit score. A high credit score will help your business in the future since you can get better ways of financing your business.

A business credit card has an impact on both personal and business credit since it affects credit scores from both sides. On the other hand, a personal credit card only affects your personal credit rating. For you to apply for a business credit card, you must have a personal guarantee to cover you in the event the business suffers financial problems.

In applying for a business credit card, the company has to assess your personal credit score and the business history. There are different business credit cards offered, and you should select the right one that suits the needs of your business. This can also provide you with credit card checks to use in the business.

The credit card act monitors personal credit cards closely unlike business credit cards. You should, therefore, keep track of the activities of the business credit card as you go through the fine print to ensure that everything is in order.

Both personal and business credit cards offer rewards in different forms such as points or cash. As a business owner, you, however, need rewards that are inclined towards your business. You can get good points when you use your business credit card in purchasing computer software or office supplies.

Personal credit cards offer rewards when you spend money on purchasing groceries, paying for gas or spending at a restaurant. It is advisable to choose categories in which most of your money goes. A business credit card helps you earn more points than a personal credit card due to everyday business spending. You should make all your business purchases using a business credit card.