Playing Safe With Company Credit Cards
We are constantly inundated by credit card companies offering seemingly bullet-proof deals. We all know some deals are too-good-to-be-true, but most businesses still must employ the use of credit cards for cash flow and other purposes. As long as you keep debt down and pay attention to high interest rates, credit cards can be used responsibly, building good credit along the way. Here are a few pointers for you and your team when it comes to credit cards:.
Beware of 0% APR offers
These offers are limited and normally expire at the end of the year. Take advantage while the offer stands, but make sure you’ve paid off the bulk of the balance by the time that offer ends.
Ask if the card is worth it
Can you get enough money from the card to really support your business? Is it going to help or hinder your credit score?
Find the best bonus points program
Do you travel a lot? Consider getting a card that’s teamed up with your most frequently used airline. Or a card that offers additional rewards on gas purchases. Some cards offer terrific cash back bonuses. Find the bonus program that will best match your needs.
Pay your bills on time
Late fees are no joke. And failing to pay means that you can lose the benefits associated with that card. Credit cards mean taking on short-term debt. Not debt for years. Once you step into high interest rates, you’re in a losing bet.
This means you and your employees. Online credit card user accounts make it easy to log in and check the status of each card. Keep credit card receipts. Even though you receive a monthly credit card statement, the IRS still requires you keep a receipt to support the business expense. Do not mix personal and business expenses on the same credit card; keep separate cards for those purposes.