Hidden Catches of Using Business Credit Cards


BANGALORE: There are many credit-card companies that offer special benefits on the credit cars that help you with your business. The benefits include rewards or business travel, smooth cash flow, rewards and discounts for spending and special programs and this make it easier for the user to keep a track of expenses and taxes. As business cards consist of all these features there are many sophisticated people who carry both personal and business cards for their everyday use.

Let’s find out the catch behind so many people using business credit cards:

1. Your personal credit history will show the business debt

It is obvious that even if you applied for a credit card in your business’s name, and used its employer ID number, your personal credit report will show the business debt. In addition to it, if the debt amount is large it can also increase your debt utilization ratio and hurt your credit score.

It is mandatory to check your credit reports for accuracy and monitor your credit scores to see how your habits are affecting your credit. Checking your credit reports is not a big deal as you can check it for free every year from each of the three major credit reporting agencies, or from Credit.com that will give you two free credit scores, updated explanation of factors are influencing the credit scores, along with a plan to help you build credit.