Business Credit Card with Rewards

[Tucker943]

If you have the management skills, running the business on a credit card shouldn't be an issue. If you're in the same frame of mind you were after college, then stay far away from a business card. I myself do not run on a credit card. But will this upcoming year. Im at a point of stable income, and have gained a lot of discipline and money management skills over the years. Im cautious about purchases, my jobs are bid with better accuracy then in years past, and Im ready to take advantage of the rewards offered.

 

[Evan Sussman]

Costco Amex is 4% for fuel. There are usually different cards for different purchases. I just settled with the Costco one, and another Amex that gives 5% on cell phone and office supplies.

 

[Merle Nelson]

Nothing is free...

Did not read the whole thread but, wanted to offer a heads up. My accountant said this is a new(ish) red flag for the tax guys. You are getting income from X card co..

 

[NickfromWI]

To me the rewards aren't worth it. And the banks know it. Y'all are talking about getting 1-2% back. I spent maybe $50,000 in purchases last year that could have been "rewards-worthy." That means at the end of the year I get $500. For me, I bet I'd spend over $500 on other stuff because of the "it's credit, I'll pay for it later" mentality. For me, knowing I have to control the spending saves me WAY more than $500-$1000 in a year.

So yeah- if you know 100% without a doubt that you will only buy with the new credit card what you are currently buying, then go for it. You'll make easy money off it. But the banks KNOW that chances are, they are the ones that are going to come out ahead in this deal. And they also know that EVERYONE thinks they are the ones that are gonna outsmart the system...but who is the one making money in this company...small biz owners or big banks???

(can you tell I'm not a fan of banks )

love
nick

 

[Merle Nelson]

One other heads up on this that I thought of. A normal credit card in your name, the bank is on the hook if someone fraudulently charges 3k on it. Business cards however have been entirely your responsibility. I think that has been changing more recently but, it is something to be aware of and know what your exposure is.

 

[Evan Sussman]

Both are good points Merle, and Nick. The liability is something to think about. I believe that many CCs extend the warranty of a purchase, and they also cover replacement if lost or stolen within 90 days or something. I've never followed through with that, but it sounds nice.

 

[NickfromWI]

I'd look into that for verification before I signed up. Sounds too good to be true


love
nick

 

[Evan Sussman]

http://www.americanexpress.com/us/content/card-benefits/purchase-protection/faq.html

under paragraph 6 it does say "commerical use"

 

[802climber]

Thanks for taking the time to post this. I was looking into getting one, but decided it is too soon for me, the convenience not being worth the risks. I'll be taking your advice instead.

To me the rewards aren't worth it. And the banks know it. Y'all are talking about getting 1-2% back. I spent maybe $50,000 in purchases last year that could have been "rewards-worthy." That means at the end of the year I get $500. For me, I bet I'd spend over $500 on other stuff because of the "it's credit, I'll pay for it later" mentality. For me, knowing I have to control the spending saves me WAY more than $500-$1000 in a year.

So yeah- if you know 100% without a doubt that you will only buy with the new credit card what you are currently buying, then go for it. You'll make easy money off it. But the banks KNOW that chances are, they are the ones that are going to come out ahead in this deal. And they also know that EVERYONE thinks they are the ones that are gonna outsmart the system...but who is the one making money in this company...small biz owners or big banks???

(can you tell I'm not a fan of banks )

love
nick

 

[lumberjack]

I "made" $818.91 in cash back on my business card in 2013.

I am currently carrying a balance on it at 10.24%, which was a calculated situation where I used the cash I was going to pay off the card with (monthly) to buy something else that I couldn't buy with the card. If I had to, I could pay the card off out of savings, but I'm currently "making payments" like it's a credit line/installment loan. I could transfer the balance to another card for a 3% transaction fee (0% interest for 12 months), but I should have it paid off soon enough so that option doesn't save much money.

 

[Joezilla11]

I haven't read the whole thread but I think using card and paying it off monthly would be a benefit. Huntington bank has a new card that allows you to pick a category such as gas/fuel and earn triple rewards in that category and low rate (8.something) if u do carry over a balance.

 

[NickfromWI]

The rewards go to the bank, not you


love
nick

 

[802climber]

I was just agreeing that with any credit, it is tempting as a small biz to spend beyond one's means and it would be a downhill battle from there. I am personally bad with letting the extra little crap add up.

One REAL benefit of true biz credit cards is they report to the business credit bureaus (D&B, etc) so you can build some good business credit for the future...

OK I am out, gotta go pay some bills.

 

[802climber]

EDIT: I have been looking into this and found that only SOME of them actually report to D&B, etc.