If you are in business then you know that being able to use your card for personal purchases can save you from paying hefty interest charges. There are two ways to do this, the first is to get a separate credit card for your personal purchases and the second is to have your personal purchases on a regular credit card that you can use for other purchases. If you are wondering whether or not you can use your business credit card for personal purchases you can check with your card provider. Most will allow you to but you will want to make sure. They should also let you know if there are any fees associated with personal purchases.
Many credit card providers have specific guidelines about who can and cannot use their credit cards for personal uses. You must have an income that is substantial enough to make you eligible for credit card offers. If you are working at a job that pays well and your employer reports your earnings regularly to payroll, you can usually use your credit card to make personal purchases. This is usually considered fine as long as your earnings don't exceed the amount required to qualify for a personal credit card.
Business credit cards are different. You will generally need to get a separate card from your card provider. Even if your card provider allows you to use it for your own personal use, you may not be allowed to use the card for all of your own personal expenses.
The reason that you need to get a separate credit card is because most credit cards charge you a frequent and recurring fee for just using your credit line for your own purchases. These fees can really add up over time and can turn into a significant expense. You can avoid these fees by finding a credit card provider that allows you to make personal purchases using your credit card.
If you can't find a business credit card that allows you to make personal purchases, another option is to use your regular card to make online purchases. Make sure, however, that you don't use your regular card to make payments on any online store. That would defeat the purpose of getting a card in the first place. Instead, use your regular card to pay for items that you buy online.
As with any other personal account, you should carefully review the terms and conditions of your business credit card. Some cards require you to pay a certain amount of interest each month. Other cards don't have any interest rate restrictions. Shop around to see which ones give you the most flexibility.
One of the things that you can do to make sure you get the most out of your business credit card is to pay off your balances at the end of each month. Even if you have a low credit score, this is an important habit to get into. Not only will it help you get better rates on your next card but also make your credit score look better. Eventually, it will pay off your debt and allow you to use . . . . . . a credit card for anything you want.
You should also know that some companies charge their clients a fee just for having their name on a business credit card. Don't ever accept such fees. If you feel you are being pressured, call the company and let them know that you will not accept such fees. Most companies will back off and leave you alone. Only accept the fee if you are truly trying to pay down your debt.