Small Business Credit Cards: 7 Myths Debunked
Small business credit cards are everywhere and the top credit card companies are offering cards to meet almost every business need. The problem is that small business credit cards are some of the most misunderstood credit cards on the market.
Let's take a look at some common misconceptions and debunk some of the most popular small business credit card myths.
1. No Credit Necessary
Many people assume that their personal credit history really has no impact on their ability to qualify for small business credit cards. This couldn't be further from the truth. Unless you have a large, well-established business with a significant credit history of its own, you're going to need your personal credit history to guarantee the small business credit cards you apply for.
Credit card companies will be running your credit report when you apply for small business credit cards and you will often be required to provide your personal information, such as your birth date and social security number.
2. Broader Spending Limits
If you assume that you'll get a fatter credit limit with business credit cards, you may want to think twice.
Whether you're applying for a business credit card or a personal credit card, your credit limit will likely be the same depending on how your credit rating is. The better your credit, the more you'll qualify for.
If your credit is damaged, don't expect to get small business credit cards that have credit lines with thousands or tens of thousands of dollars.
3. Big Business Only
Some people assume that business credit cards are only for businesses with substantial revenue and established credit histories. However, business credit cards can be used for any size business.
Even the owners of the smallest business can benefit from business credit cards. You may be required to guarantee the credit line personally (which can affect your personal credit history), but you will be able to begin building your businesses credit.
4. Higher Interest Rates Apply
Some business owners shy away from business credit cards because they believe that they will be charged a higher interest rate.
This just isn't the case.
Many small business credit cards offer very competitive interest rates, and some even offer extra perks such as points programs and access to discounted products and services for your business needs.
If you've been worried about the interest rates associated with small business credit cards, a little investigation into current offerings may surprise you.
5. The Confusion Factor
Some people think that managing business credit cards in addition to their personal credit cards will prove to be too confusing. In reality, it can make things much easier.
Using small business credit cards will allow you to keep your business and personal expenses separate, which can prove to be a lifesaver when it comes to accounting and tax time. If you're avoiding business credit cards because you are afraid it will complicate things, do yourself a favor and give business credit cards a chance.
6. A Loss of Control
Many business owners are afraid that having a business credit card will mean that employees can use the card, and that may mean a loss of control over the business expenditures.
This couldn't be further from the truth. Company employees are not allowed to use business credit cards without the express consent of the person responsible for authorizing their use and the only employees who will have access to the business credit cards are the employees you add to the account and give the cards to.
7. It's Not a Necessity
If you're among those who believe that small business credit cards are a luxury, you need to adjust your perspective.
For a business to thrive in the long run, it must have at least one or two business credit cards for business expenses. From purchasing supplies to subscribing to services, small business credit cards can help your business obtain the tools it needs to grow.
Related Tags: small business credit cards
For more tips on getting the best business credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources. Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are