Based on a study conducted by the Tower Group-a leading research and consulting firm- only two thirds of small businesses in the industry make use of a credit card for their expenses, with only 40% using credit cards for business.
If you own a business, have you considered applying for a business credit card? Indeed, when managed correctly, this type of credit card can be an efficient tool for building business credit. Check out the following tips on how you use a business credit card to your advantage:
1. Limit the number of your credit cards. How many business credit cards should you get? To avoid the risk of debt build-up, it is recommended to
comes with a higher interest rate than the APR applied on purchases and balance transfers. This is why cardholders are advised to avoid using their credit cards for this type of transaction.4. Take advantage of the online payment option. Business credit card companies provide an Online Account Access Feature to give their customers the option to make payments through the internet. Such a feature is indispensible in keeping up with your payment schedules and most of all, it is a great ease for a business owner who handles a lot of tasks.
5. Pay Your Bills on time. Delayed payments can cost you penalties and can badly pull down your credit score. Furthermore, frequent late payments increase the risk of uncontrolled debt. If you want to use a business credit card, see to it that you will be able to make your payments on time.
Remember, business credit cards can provide a great back up to your cash flow and build up your business credit history as well. Through responsible management, building and maintaining an impressive Paydex score will be much easier. By following the above tips, a business owner who uses a business credit card can surely enjoy the benefits.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2007 |
I agree with you, proper use of business credit card results to a good credit score.
@Riane Thomas
Thank you very much for reading. Today, only one agency provides FREE credit score, it is accordance to the federal law.
Yes, I read it from the news. It is because of some complains and not proper sending the FREE services to the consumer.