I’ve been thinking for the past few months of getting my first business credit-card. Between running a part-time business and my blogging business, there come times when I have to use a credit-card to make purchases. It’s easy to make purchases, but separating my business and personal transactions gets pretty confusing at times. Far too many times last year I made purchases on my personal credit card for the businesses. And it’s become a royal pain in the ass with all the paperwork juggling. I know that a change needs to be made, obviously one of the first rules of being a business owner is keeping your business transactions separate from personal transactions.
So, I need a business credit card. Badly!
Due to some past reading on business credit cards, I’m familiar with the process of obtaining a business credit card. It is much like applying for a personal credit card. In both cases, lenders want to know that they’re not taking an undue financial risk by extending you credit.
Essentially this means that before you’re approved, creditor issuers will scrutinize your credit score, your repayment history, and even the years spent at your current residence. Some business credit cards come with costly interest rates, however I’m not interested in those.
I am thinking of waiting until after I do my business taxes in the Spring. This way I can alleviate some pressure and make the process slightly easier. If the creditor reviews my tax statements, looks at the positive cash-flow and a decent income on monthly basis, it should make it easier for me to obtain a business credit-card.
Previously I was offered a small business line of credit, but I was not ready to take it at that time, so I rejected the offer. I’d rather get a business credit-card. Sure the interest is probably higher, but I don’t need a massive amount of credit. For me it’s about the convenience. And in order for me to get any small business financing will probably require some sort of personal guarantee from my personal side of finances. We’ll see, maybe not, but than again I wouldn’t be surprised.
So, I’ll keep you guys posted on my journey to getting my first business credit card.
Does anyone have any good business credit-card recommendations?