Business credit cards offer many different advantages that make it worth your while, including rewards, perks, sign-up bonuses, 0% interest on purchases, and more. But if you want to enjoy even more advantages, it’s important you avoid the most common mistakes people tend to make.
Learning what not to do is super important when it comes to your business cards, so here are 5 super useful tips that will help you get the most out of your business credit card without any trouble at all!
1. Take Advantage of Sign-Up Bonuses
Sign-up bonuses are super common because they’re meant to prompt people to get credit cards. For that reason, they offer great deals you can take advantage of, such as gift cards, a statement credit, travel rewards, etc. To enjoy the sign-up bonus the company of your choice has to offer, you’ll need to spend a certain amount of money in a given period of time. However, consider getting the sign-up bonus only if it’s within your means. Say your sign-up bonus requires you to spend $5,000 in the first six months; don’t overspend just to get the bonus. It won’t be worth it that way!
2. Always Pay in Full and on Time
This might seem obvious, but it’s not uncommon for people to not pay in full and on time. If you don’t make this a habit, especially for your business credit card, it will cost you more money down the line. Remember that there are late fees applied when you fail to pay your credit, and these fees can from $15 to $35 and even higher. Paying late can also lead to penalty interest rates, which are commonly close to 30%.
To avoid missing your deadline, set up automatic payments so the money is deducted each month, or at least set up alerts so you don’t forget. If you realize missing a payment will be unavoidable, call your bank and let them know. Being honest is the best thing you can do. Plus, you should ask for a grace period; it’s definitely worth a try!
3. Watch Out for Expiration of 0% Interest Promotions
Usually, interest free credit card promotions last up to 12 months and they’re amazing because they can really help your business’s cashflow. However, you’ll need to watch out for expiration because you’ll need to figure out what the new interest rate will be before you continue using your credit card as before.
4. Maximize Your Credit Card Rewards
Credit card rewards are a huge advantage, and you can maximize them if you make them a priority. Of course, what you need to do is choose a business credit card that will offer rewards for purchases you usually make, so it’s easy to maximize them in the future. The last thing you want to do is spend money on things you don’t actually need just to get the rewards. Also, make sure you know how long you have before your rewards expire so you don’t lose them!
5. Deduct If Necessary
If paying interest on your business credit card is unavoidable, keep in mind that you can always deduct it from your taxes. Late fees and interest rates are deductible as long as you’re using the credit card for business purposes, so make sure you deduct if and when necessary!
Business credit cards offer amazing rewards and perks. What’s more, you can maximize them and capitalize on them if you know what you’re doing. These tips are a great way to get started, so don’t hesitate to apply them!