If you run a retail store, and if you are freelance or managing another type of small business, it is important to separate your business and personal expenses. However, using the same issuer for personal and business credit cards makes this organization easier. Many credit card issuers offer a variety of credit card types, and there are certain advantages to doing finance in one place.
1. Improve your chances of qualifying for business cards
Generally, banks prefer customers who have several types of accounts. Savings account and Checking account, Car loan and Home Loan Various credit cards. Having both an issuer and individual and business cards will allow you to qualify for a higher line of credit, lower interest rates on other credit products, and even qualify for free banking services.
The best business credit cards may require a high credit score. This could be a challenge for new businesses to be approved on the card. According to Markia Brown, a certified financial education instructor behind Money Plug, having a personal relationship with a lender can help with approval odds for new accounts.
If a consumer has established a mutually beneficial relationship with a bank or credit union, they can use that personal relationship to apply for a business credit account that is normally unaccessible.
– Markia Brown, certified financial education instructor behind money plugs
Let’s say you’re interested in business cards with limited time welcoming bonuses, but have limited credit history. By using your cards responsibly over time, you can form relationships with the issuer, build a business credit history, and move to cards with faster rewards than if you were looking for a card with another issuer.
2. Streamline account management
Credit card issuers have different customer service systems, phone numbers, websites and apps. If you’re busy, like most business owners do, managing your account with one issuer can save you time.
Lori Greymont, a real estate investor and host of the Reality Series fundraising showdown, is always on the go. So she doesn’t juggle another bank. Her personal and business cards are both the same as Wells Fargo.
“Using one app on my phone makes it all possible,” says Greymont. “It saves me time and it makes my life easier.”
Plus, if you only have one bank, you can compare the money flow, transactions and other activities within your account more easily. This can be useful for new offers, but it can also be useful if you run into problems. Having an account in the same bank makes it easier for you to help, including disputes, card upgrades, asset management, as the issuer has a more complete picture of what’s going on in your finances.
“Consumers are already familiar with the bank and some of its policies, so they will be very comfortable doing business with that bank,” Brown says.
3. You can combine credit card rewards
Many of the best business credit cards offer rewards for points, miles or cashback. You can choose a business card with sign-up bonuses and rewards that fit the most common spending categories.
If you have business and personal credit cards from the same issuer, it may be possible Combine your rewards. This means transferring your reward balance to your card at the highest redemption rate.
For example, if you have Ink BusinessPreferred® Credit Cardredeem them for a trip with Chase and get a value of 1.25 cents per point The ultimate reward program. But if you have it too Chase Sapphire Reserve® Personal cards earn 1.5 cents per point on travel redemption via Chase. Therefore, it makes sense to transfer points to your personal card.
This feature is also useful if you want to close one of your reward cards with the same issuer. Usually, you can transfer your reward balance to a card that holds it.
4. Protect your credit score
When you apply for a credit card, you will receive temporary and slightly harsh inquiries. Lower Your Credit Score. However, if the credit card issuer provides the opportunity to open a business card after responsibly using his personal card (or vice versa), then that difficult inquiry may be avoided. This is useful if you want to maintain or increase your credit score.
You can contact the credit card issuer directly and ask if you wish to approve a new credit account based on your personal relationship. You can also wait for the issuer to contact you with an offer via the banking app or email.
Conclusion
Strengthening relationships with a single card issuer can increase your chances of trust that you don’t receive anything you don’t. You may be able to view credit statements to pay your bills in the same location, and you may be able to maximize the rewards for both cards.
Please note that it may make sense too Switch business credit card issuer Take advantage of perks such as sign-up bonuses and better rewards. It just depends on your small business goals and the card that’s right for you.
