Don’t Miss These 5 Tips for Business Credit Cards

A business credit card is a fantastic way to cover the cost of operations and put goals in reach. If you’re interested in applying for one, there are some tried-and-true methods to use and manage them effectively. By enlisting them, you can ensure you’re reaping the benefits of borrowing while protecting your business’s bottom line. 

5 ways to effectively manage and use a business credit card 

1. Stay on top of payments

Did you know your business has a credit score? It’s tied to your Employer Identification Number instead of your Social Security number. Maintaining a favorable business credit score involves making on-time payments, but factors like the industry you’re in will also influence this number. To stay on top of payments, you should:

• Lean on digital payment options like Online Banking or mobile app¹ banking so you can submit payments from your device 24/7/365.
• Set up automatic payments so you never have to worry about being late.

Note that while a business and personal credit score are technically separate numbers, the latter may influence your commercial borrowing options in some cases. This is especially true if you’re a sole proprietor or if a credit card application requires your personal Social Security number. If it does, it’s safe to assume that your personal credit may be evaluated alongside your business’s. 

2. Make payments from a business account

Comingling your personal and business finances by making card payments from a personal account may make it difficult to track your business cash flow. For this reason, it’s crucial to have a business checking or savings account from which you can draw funds. 

3. Don’t reach for a personal credit card

Switching back and forth between a personal and business credit card can make things difficult for you come tax time. That’s because you’ll need to calculate your business expenses and will have to filter through a sea of personal expenses to find them. Keeping all business charges on a business credit card simplifies these calculations for tax purposes.

4. Identify if it’s the best payment method 

Credit cards are considered revolving credit because you can borrow funds up to your credit limit as many times as you’d like. Interest charges are avoidable by making on-time, full payments, and paying off your full balance each cycle. This makes credit cards a fantastic option for businesses to cover costs and build credit.

But what if you’re making a large purchase that you don’t anticipate being able to pay off within one payment cycle? In this case, it may be wise to turn to a business loan instead. This way, you can make installment payments while enjoying a lower rate. 

• General Electric Credit Union’s (GECU) business credit cards and commercial loans are a match made in heaven! Contact our Business Services team to get set up with both and finance the everyday, the remarkable, and everything in between. 

5. Make the most of features

The best business credit cards have a low-rate and no annual fee alongside all the bells and whistles like reward points, zero liability for unauthorized transactions, digital wallet compatibility, and travel protection benefits. Review the perks and features available on your business credit card to ensure you’re getting the full benefit of the product. 

GECU is the go-to banking option for Tri-State businesses and beyond because we give you access to: 

• Our dedicated Business Services team, who will help your business every step of the way.
• A business Online Banking or mobile app with expanded features like the ability to manage multiple users.
• Our Business Credit card² earns 2x the points on all purchases that can be redeemed for: cash back, merchandise, travel, gift cards, and more.³
• Multiple business financing options including: SBA loans, business term loans, equipment financing, and business real estate loans.

Not a member yet? Your business can bank with us if you live, work, worship, or attend school in select Ohio, Kentucky, and Indiana counties. Confirm your eligibility online, then reach out to our Business Services team directly to open an account.