What Are Business Credit Cards?

Business credit cards are credit cards that are taken out in the name of the company. A business credit card has the advantage of providing business with additional purchasing power. Just like there are two kinds of credit histories personal credit history and this is credit history, the credit card that you use for your personal use and business use it can also be differentiated in terms of a person credit card and a business credit card. However, as a small business owner approved for a business credit card may very well depend not only on your business credit report at your personal credit score as well. For large corporations and companies the business credit report may matter more.

Business credit cards are available from several major credit card providers such as MasterCard, Visa, American Express and Advanta. Not all business credit cards are created equal which is pretty much like any other credit card. Choosing between a MasterCard business card and Visa or discover credit card will require here to examine the features of every credit card including the fee and charges applicable.

Another advantage of choosing a business credit card the purpose of making business expenses is that you will be able to segregate the credit file and reporting between your personal and this is credit report. You will also be able to manage your annual budgets and finances in a more systematic manner. For example you can differentiate and segregate expenses made on a personal dinner and a business dinner, personal and business trips etc.

A business credit card is likely to come at a higher rate of interest than a store credit card. Which is why is cards have to be managed carefully and professionally. You must restrict yourself using a business golfer purpose of this is only otherwise you risk having problems in business cash flow.

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