Business credit cards are highly favored by business owners since it gives them access to multiple lines of credit. According to recent reports, small business cards amount to $430 billion of expenses. One in every six dollars is spent on general-purpose cards. If you don’t have any cards to manage your business expense, this can be the best time to get one.
Business cards come with a set credit limit. They help you make purchases and withdraw cash as well. They’re pretty similar to consumer credit cards, but business cards have an interest charge if you fail to pay the balance every payment cycle. It’s pretty easy to get approval for a business card through a bank or lending company. Compare the terms and conditions and apply online through their official websites.
If you’re still wondering about why you should get a business credit card, here are some reasons that you should.
High credit limits
Business cards normally carry a limit of $50,000. This can be extended if you need it. It’s easy to buy products and services that are necessary to run your business smoothly.
Boost the credit rating
When you use your business card responsibly and efficiently and make payments in time, you’re rewarded with good credit ratings. Do business with responsible suppliers who are report transactions to credit bureau regularly and accurately. This can help you get a high credit score.
Distinct business credits
Business credit would stands different from your personal credit. That means any transactions that you make in business credit doesn’t affect your personal credit. This ensure that all your credit lines are managed efficiently.
Manage expenses of the employees
A business credit card makes it easier for you to track and set limits on how much your employees spend. It also lets you to get insight into the bigger picture and help you understand whether your employees are helping your business to grow and develop the company with the money they’re spending.
Get access to lucrative business perks
The rewards you get through your business credit cards also include discounts and offers on business travel and shopping at specified outlets. If you’re interested in getting perks, compare different business cards and find the card that offers the most perks that can help your business flourish.
Track all your business expenses
When you have a business card, it facilitates sorting out personal and business transactions. It’s very easy to manage your transactions without hassles when it’s time to pay taxes. It helps you to have a handle on the spending. It’s also easy for you to detect areas where you can save on expenses. That can be a lifesaver, since the more money that you save, the more money that you can either invest elsewhere.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.