The Risks and Benefits of Business Credit Card
Like personal credit cards, business credit cards are risky and they also have many advantages.
Risk control of business credit cards. As with personal credit cards, banks also conduct risk assessments of users based on the use of business credit cards. For example, consumption suddenly increases, debt is not paid back, and so on behavior is also likely to let the bank directly turn off your credit card. However, compared to personal cards, business cards to a much higher tolerance, after all, business practices on a large number of purchases and repayments are relatively common.
In most cases, the employer (the business owner) who applied for a business credit card is personally responsible for all costs incurred on the account related to the card, including employee purchases. business credit cards are less protected by law: business credit cards are not protected by credit card laws, so remember to pay on time.
Specifically mentioned here that AMEX business credit cards also lead to Financial Review. Once the FR is triggered, the commissioner will ask you to submit the business tax form for the TIN. If you can't provide something that can't be replaced with something like a bank bill, you can only level or be leveled. However, the use of personal tax forms should apply only to Sole Proprietor (business and personal income are taxed together). So if you really trigger fr and don't have a business tax form, it's a good idea to turn off your business credit card and see if you can preserve your personal credit card.
Benefits of applying for a business credit card:
One of the biggest benefits of a business credit card is that it can open an employee card and manage company expenses. Some business credit cards offer a grace period of 0% annual interest rate, sometimes up to 15 months. In addition, some business credit cards offer better warranty services such as mobile phone protection, travel insurance and car rental damage collision insurance.
Some top business credit cards may cost more than $400 a year, but can provide additional benefits to offset the annual fee, such as creditfore for airline tickets or hotel stays, the right to use the lounge as a VIP, and so on.
Business credit card widen the card-opening reward channel. Personal cards may soon be applied out, and the card award is almost as good. What if you do that, of course, you can turn to a business credit card and reward again. The representative is AMEX, commercial card and multi-card reward is high. And it's important that business card applications use EIN, so you can apply each set of EIN cards once, such as multiple EIN applications for Chase Ink, which is not a problem at all.
Since most business credit cards, including chase, do not report individually, once 524 is issued, the requested chase business credit card will be approved as normal. And the new cards won't appear on personal reports. If you've already made 524, it's highly recommended to apply for a wave of business credit cards first.
Consumption does not affect personal credit. Since business credit card arrears are generally not reported to your personal credit report, you can put a lot of money on your business card to avoid a high balance of personal credit reports that affect your credit score.