Using Personal Credit Cards for Business
What do you use to pay for your business purchases?
Do you use a personal credit card?
If so, you’re not alone.
In fact, over 65% of all small businesses use credit cards on a regular basis but less than 50% of those cards are actually in the company’s name.
In today’s post you’re about to learn why using personal credit cards for business purchases is dangerous and can cost you more than you think.
Here are five key reasons to stop using personal credit cards for business purchases:
1) Impacts Your Credit Utilization – Using a personal credit card for business purchases directly impacts your individual and overall credit utilization ratios. These ratios are one of the factors that make up your FICO® scores.
In fact, the second most important factor that impacts your credit scores is your debt. The credit scoring system heavily weighs your debt usage. This is where a scoring model such as FICO® takes the size of the credit limit on each card and compares it to the balance owing being reported by the card issuer. (credit limit vs amount owing)
Click to continue …