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6 Reasons to Apply for a Business Credit Card

Small businesses play a crucial role in today's economy, and in the United States alone, there are thousands of new mom and pops stores, gas stations and variety stores opening up for business. If you own your own business, there are many reasons why you should apply for a business credit card.

1. Keeps Your Business Finances and Personal Finances Separate

One of the main reasons to apply for a business credit card is for separating your business finances from your personal finances. With your new business card, you will be able to purchase items online, by phone or in person. Credit cards are now accepted practically everywhere.

2. You Don't Have to Keep Track of Expenses

Instead of having to use your own money for company business, you can use your business credit card for business related products and supplies. By using your credit card, you won't have to keep up with your purchases because the bank will send you a monthly bank statement showing your expenses for the previous month.

3. Establishes Credibility

Another great reason to apply for a business credit card is for the ability to establish your credibility as a professional business owner. It will also give you credit and respect with the financial institutes associated with the bank you deal with. If you keep up with the payments for a few months and show you are a responsible business person, you will be able to apply for a small business loan with better rates.  

4. Rewards

When you use your business credit card, you get awarded whenever you make a purchase; be it buying gas or purchasing supplies.
Simply by paying with your credit card instead of paying with cash, you can get rewarded. If you allow your employees to be authorized to use the credit card, you get rewarded more and quicker. Your workers will appreciate the fact that they can purchase company related products without a hassle.

5. Credit Limit Is Higher

Credit companies know that because businesses spend way more than regular consumers, they're credit risks are better. Business credit cards have higher credit limits than regular credit cards do. Having a higher credit limit is a great way to improve your credit report and improve your professional credit worthiness.

6. Insurance

If you or your business employees use the business credit card for travel expenses, they should be able to get their travel insurance for free. This will save your company money by not having to pay for extra insurance.

If your credit is pretty good, you can apply to get a business credit card as an individual and select "sole proprietor" for your business and use your social security number. This way you can eliminate the need for a business tax identification number.

Even if your business is just starting out, a credit card is an essential part of your company's future. Small business credit cards are always great to have around in case of emergencies. You never know when your office equipment might break and you need to replace it.

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