THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.
If you are self-employed or own a small business, it may be a very good idea to have a separate business credit card. Some of the reasons include:
It is easier to keep up with business purchases and expenses when they are not mixed in with personal purchases and expenses. This can be especially helpful at tax time, when you need quick access to deductions and other information.
If you choose a credit card that has a rewards program—in other words, you earn a certain number of rewards points each time you make an eligible purchase or use the card in a way that makes you eligible to earn points—you may be able to earn rewards points faster. Usually with rewards points programs, the higher the dollar amount placed on the card the more points you earn, and if you use your business credit card for your larger transactions, then you are going to be able to take advantage of them quicker.
A credit card company may offer better interest rates or other perks that might be available on a personal use credit card. This can also be an asset to your business, as it may save you money or provide you with more opportunities in the long run.