7 Reasons You Need A New Credit Card For Your Business

By Shrutika Vaishnavi | January 24, 2018

Like everything else, your business Credit Card might need an upgrade too. Read on to know more.

7 Reasons You Need A New Credit Card For Your Business

Are you a businessperson? If the answer is yes, we’re sure you know everything about the struggle of keeping business accounts. If you’ve just started out and begun the journey of your dreams, getting every transaction on paper might be a little troublesome for you.

Trust us, we know the struggle. But like always, we have a solution for you this time as well. Have you heard of business Credit Cards? If you have a clear idea of what they are and how useful they can be, we hope you already have one. In case you’re still in a dilemma about whether to get one or not, by the time you finish reading this, you’ll have a clear choice in front of you.

Additional Reading: 5 Ways to Raise Money for Your Business

Wait! We know you hate taking financial decisions in a hurry. Precisely why we’ll start by telling you more about business Credit Cards and how they function. Here’s all you need to know about them:

  • More rewards are always welcome

Business Credit Cards come with an elaborate rewards program. Compared to your normal plastic friend, these business Credit Cards let you enjoy a wider range of rewards.

What kind of rewards? Things like discounts and rebates on airline ticket bookings, hotel bookings, fuel purchases etc. Not just that, you can also avail cashback on business supply purchases made from select partners. What can be better than rewards accumulating at lightning speed?

  • Better accounting features

One of the best features of a business Credit Card is that it comes with better accounting features to make your life simpler. It offers features like expense reporting, downloadable purchase records, account tracking and monitoring etc. that let you take care of your finances in a better and more simplified manner. Better than getting lost in those account books and losing track of those payments, right?

  • Free employee Credit Cards

As an employer, it’s your responsibility to make your employees feel pampered. They look forward to it, all the time. Business Credit Cards are one such opportunity. For starters, all Credit Cards issued in the name of your employees can help them earn rewards on their purchases.

Won’t that make them happy and treat you like the best boss in the whole world? Who doesn’t like more rewards anyway? The best part? You don’t have to worry about losing your own rewards. You’ll never lose them. Now that’s a win-win for you and your employees as well, isn’t it?

Click here to browse through some of the best business Credit Cards in India.

Now that you know more about business Credit Cards, it’s time we talk about why you need to apply for a business Credit Card. Here we go:

  • Bye bye, high interest rates!

Yes! You finally get to bid adieu to high Credit Card interest rates. We know, we know! You’ve been looking for ways to do that. That’s why we came up with the idea of getting a business Credit Card.

As compared to the usual Credit Cards, these come with an array of benefits. One of the main reasons you must consider switching is the fact that using your personal Credit Cards for business expenses can hurt your pocket pretty bad.

How? If your Credit Card has a high rate of interest, using it to meet your business expenses might not be a great idea. You wouldn’t want to still pay extra (in the form of interest) for something you can get at better rates and more benefits?

Additional Reading: 6 Worst Ways To Pay Off Your Credit Card Debt
  • Low business credit

If you’re in the phase of trying to establish your business, you need to think about building good business credit. Maybe you never needed a loan for your business because you had saved enough to start the journey of your dreams. Even so, you still need to build good credit for your business. Time and luck can change anytime.

Maybe while starting your business, luck was totally in your favour. But as they say, running a business is a risky business. There are high chances that the market will fluctuate and you won’t be able to do much about it. In such a situation, where your business needs a financial cushion and you don’t have much in hand, you’ll be forced to apply for a loan.

That’s when a good business credit will come in handy. Business credit works for a business exactly in the same way a Credit Score works for you. If a lender knows that you have good business credit, they’re more likely to approve your loan requests. How to build a good business credit? That should be the first question that pops into your head.

The answer is simple. A business Credit Card can save the day for you. Your business Credit Card application, however, might be based on your personal credit. So, you must have good personal credit to support it.

Additional Reading: 5 Ways To Improve Your Credit Score
  • Low credit limit

Do you keep maxing out your Credit Card way too often? We know how that feels. Don’t worry. It just means that you need to get a card with a higher credit limit. But before randomly increasing your credit limit, you need to analyse your needs and the requirements of your business. That’s how you’ll know by how much you need to raise the limit.

Also, randomly requesting to increase your credit limit could also have a negative impact on your Credit Score. Why? Because a high credit limit also means that your debt-to-credit ratio will increase tremendously. Don’t get confused. It’s also known as the credit-utilisation ratio.

Therefore, instead of increasing the credit limit on your existing Credit Card, it’s better to apply for a brand new Credit Card. Talk to the issuer. Once you tell them about your exact business needs, they might be able to assist you better. It’ll be a win-win situation for you as you’ll get a higher credit limit without having to ruin your credit-utilisation ratio. Oh, and you also get to invest better in your business, thanks to better credit access.

Additional Reading: The Pros And Cons Of Increasing The Credit Limit On Your Credit Card
  • Want more rewards?

Do you feel like you’re not getting enough rewards on your current Credit Card? We understand you. After all, rewards are an important part of getting a Credit Card. A business Credit Card can change the game for you.

Oh! We almost forgot to tell you the best part about getting these cards. The rewards earned on employee-issued Credit Cards also go toward the business. How cool is that? Still thinking about getting that Credit Card? What are you waiting for? Hop to it and start stacking up those reward points!

Additional Reading: Myths About Credit Card Rewards

We hope that we’ve convinced you enough to apply for a business Credit Card. If you get the right plastic buddy, it can prove to be a boon for your business. If you already have a business Credit Card, maybe it’s time to revisit the benefits and rewards to see if it still suits your needs or not. No point carrying redundant cards in your wallet, right?

Whether it’s a Credit Card or a whole range of financial products that can help you run your business more efficiently, we’ve got everything you’re looking for and then some.

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Category: Credit Cards
Shrutika Vaishnavi

About Shrutika Vaishnavi

Shrutika believes that everyone is a superhero, with a stack of some extraordinary superpowers. She is driven by the simplicity of the most complicated things around her, and her superpower is- using the right words at the right time.

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