What Is the Difference Between Business vs Personal Credit Cards | The Journey скачать в хорошем качестве

What Is the Difference Between Business vs Personal Credit Cards | The Journey

What Is the Difference Between Business vs Personal Credit Cards. Check out more The Journey content at https://bit.ly/GDTheJourney. ✅Read about it here on our blog ➜ https://bit.ly/33VhEN6GoDaddy 0:12 What is the difference between business vs personal credit cards 1:15 What is credit? 2:03 Personal credit 3:27 Business credit 5:12 Personal credit card benefits 6:05 Business credit card benefits Starting a business can feel overwhelming — there’s a brand to develop and seemingly endless tasks to juggle. As you get your company off the ground, you might find yourself in need of extra capital to make ends meet and a business credit card could help you bridge that startup gap. That being said, it’s understandable if you have questions. Many of us do, including: Can you use your personal credit card for business purposes, or vice versa? What kind of protection or benefits does a business credit card offer? Why can’t you just use the same credit card for everything in your life? As long as you’ve established yourself as a corporation or an LLC, having a business credit card makes the business — as an entity — responsible for paying back debt, rather than you personally. From cashback rewards to travel benefits to a financial cushion when an unexpected business need pops up, there are a lot of very convincing reasons to sign up for a business credit card. Let’s break down the key differences between business and personal credit cards. We’ll discuss each type of card, what you typically use them for, and why a business credit card is an invaluable tool for both new and established business owners. The relationship between business and personal credit How exactly do these two credit types interact? Is business credit based on personal credit? Does business credit affect personal credit? The short answer: These scores are not related or linked. Your personal credit score stays with you for life, while your business credit score is linked only to your business. There are scenarios, however, where personal credit takes the place of business credit, and not always to your benefit. Benefits of using a personal credit card When you use your credit card, pay off loans on time, and pay off your credit card balance on time, your credit score improves. Generally, as your credit score improves, your credit limit will also rise. If you choose to use a personal credit card for business purposes, that history won’t be reflected on your business’s credit report. That means when you go to apply for a bank loan, lenders won’t have the full picture of your creditworthiness and, as a result, may offer less favorable rates for your business loan since you used your personal credit previously. However, your personal credit score can impact your application when applying for business financing. As a sole proprietor or single-member LLC without employees, you’re legally allowed to use a personal credit card for all of your expenses, but it’s not advisable. If your business is registered as any other business entity, you must separate your personal credit card expenses from your business credit card expenses. Benefits of using a business credit card While you may use a personal credit card as a sole proprietorship or a single-member LLC with no employees, there are still many reasons to use a business credit card rather than a personal credit card. With a separate credit card for business, you can track business expenses independently of your personal ones, simplifying your financial and tax reporting come tax season. A business credit card can benefit many small business owners. It can help you keep your personal and business expenses separate, build your business credit score, and give you access to funds whenever you need it most. That being said, there are some instances where a business loan is the better option. But when a business loan isn’t right for your startup company, a business credit card can act as a stepping stone to more funding as you get off the ground. The above content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. The Journey is what everyday entrepreneurs, like you, need to follow in the pursuit of online success. Our experienced GoDaddy Guides are here to take you through all the steps, both big and small, that you encounter every day. ---------- Subscribe: http://bit.ly/GoDaddy-Subscribe Website: https://www.godaddy.com Facebook:   / godaddy   Twitter:   / godaddy   Instagram:   / godaddy   #TheJourney #Business #GoDaddy #Entrepreneur #HowtoStartaBusiness #BusinessCreditCard #CreditCards #PersonalCreditCards