Whether you’re self-employed, running a small startup venture with a few employees, or operating a thriving business that is charting rapid growth, it’s never a bad idea to have a business credit card in your back pocket. Having a business credit card makes it easier to pay for business-related expenses and to keep those expenses separate from your personal finances. It also makes tracking business spending simpler because you can just charge much of that spending to the credit card itself. Business credit cards can also provide extra financial flexibility, give your business a smooth path toward building credit and provide a range of rewards and other perks that you might not have access to with a personal credit card or other forms of business spending. At Resource One Credit Union, we are here to help you explore and unlock the benefits of our credit union business credit cards.

Why Do I Need a Business Credit Card?

From freelancers to SMB owners and corporate executives, we recommend that everyone asks the question, “How do I get a business credit card?” if they haven’t already. Particularly in the case of sole proprietors and “gig economy” freelancers, though, business credit cards aren’t necessarily typical. Many people assume that if they haven’t set up an LLC, a corporation, or some other legal business entity that they either can’t get a business credit card or have no reason to have one. In truth, there is plenty of reason for even self-employed individuals to apply for business credit cards. Here are a few reasons this type of card is so valuable:

  1. It gives you more financial freedom to grow your business. Perhaps you are waiting for half a dozen invoices to be paid and are relatively low on cash right now, but still need to pay the bills for your business. Alternatively, maybe you need to make a relatively large business-related purchase, but don’t have the cash on hand to cover that expense upfront. In these situations, business credit cards can give your business some much-needed financial freedom and flexibility. Put the expense on your credit card now and pay it off over time when you have the funds to do so.
  2. It helps separate business expenses from personal expenses. One of the first things most startups do is separate their business expenses from their personal expenses. This process preserves the liability protection offered by operating a legal business entity such as an LLC. It also just makes operating a business cleaner and more manageable. Instead of having to sort through your personal credit card bill to separate the business expenses from the home expenses, you have separate cards for those different parts of your life. Indeed, having your finances separated will make things much easier for you or your accountant come tax season. As your business grows and accumulates more financial obligations, separating those expenses can also help you avoid maxing out your personal credit cards on business expenses and leaving no additional credit for your own needs.
  3. It can provide perks and rewards that are valuable to your business. You probably know someone in your day-to-day life who pays for everything with a credit card to get rewards. Different cards can provide cashback rewards, discounts at gas stations or grocery stores, airline miles, and all sorts of other rewards. Business credit cards, while often considered first and foremost as a practical solution for some of the financial challenges that running a business brings, will also sometimes offer unique perks and rewards. For instance, at Resource One Credit Union, our business credit cards include benefits such as: Visa SavingsEdge (which can earn you savings with vendors and merchants including Stamps.com, Papa Johns, FreshBooks, and more) and Yelp Ads (which earns you $50 bonus ad spend with Yelp if you spend $150 on Yelp Ads in a month).
  4. It can build your business credit (but protect your personal credit). Just as having a good credit rating can benefit you personally, your business having a solid credit history can be helpful in the future if you need to apply for a mortgage, buy a company vehicle, or obtain any kind of business loan. Having a credit card tied to your business is one of the easiest ways for you to build business credit. Furthermore, that card is linked to your business—not to your personal credit. Applying for business credit cards won’t negatively affect your personal credit score, nor will accumulating a big balance on your business card. That’s not to say you shouldn’t be careful: if you default on business credit card debt, you can be held personally responsible for paying off those debts. However, for the most part, business credit cards are entirely separate from your personal finances and credit.

Get a Business Credit Card at Resource One Credit Union

If you are interested in getting a credit card for your business, we hope you will consider the Resource One Visa Business Credit Card. This card has no annual fee, no balance transfer fee, low and fixed APR options, no processing fees, no surprise rate increases, and credit limits of up to $20,000. 

If you are interested in our Visa business card, start by contacting our team today. We would be happy to share more information about our credit union business credit cards or helping you through the application process to obtain your new business card.

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