Another Silly Credit Card Question

[framinzfun]

I was perusing Credit Cards again and was wondering if it matters to suppliers if your credit card is a business card or personal card? I would imagine not, I was just wondering if there were any drawbacks to a business card versus a personal card. I would be more prone to just get a personal card. I don't really know why, the business cards have lower APR's in general ... should I get a business credit card?

[Baer Charlton]

A business credit card (mine anyway) builds credit history for your business and if you're a sole prop. then it is also building credit history for you personaly as well.

So keep it all good.

As for vendors, I can only speak for the ones that I rep for.... If the card is valid, yours, and the address and phone number is correct for you business that we are shipping to....

It doesn't matter if it says Jane Doe (as long as that is your real name), or Jane Does Custom Picture Framing. (do you like that one? Come on Capt English, I know you're smiling.... maybe even a chuckle.)

If you want a personal card because it will have your smiling face on it? Great.
If you want a business card because it grows your businesses reputation? Great.

Both can come with perks or milage.

Both are good and accepted by vendors.

And as you pointed out: business usually has a lower APR, because they are handed out like candy to every high school goofball.

But whether you get a bus card or not? That is something to be decided between you and your god.... and maybe Rob Markoff. graemlins/thumbsup.gif

[Gustopher]

Well, gang, I was formerly employed by Capital One, and my recommendation is to have a credit card to keep your business expenses isolated from your personal ones. That will make it easier to track down during Tax Time. Cap One will toss a card out, but be wary of the interest rate and the default rate cap. 0% introductory for balance transfer is OK, but six months into the deal, you're looking at 19.6% of the outstanding balance, and JEEZ where does all the money go?
It was mentioned in this thread that credit is just something else to be managed. My CPA suggested a business card, my lender suggested a business card, and my wife suggested a business card.
Guess I'll go and get a business card, eh?

Gus

[framinzfun]

I know these seem to be pretty elementary questions, but I'm new to all this stuff and I'm trying to understand it all.... next question is when the credit card application asks for Tax ID number (I am a small business with no employees and hence no federal ein) do I use my SSN?

[MEH]

I use a personal credit card for business expenses, but that's all that goes on that specific card. Only reason is that I like the rewards with that card and that particular issuer doesn't offer business cards.

[Rock]

I'm a small business also with no employees, but I still have a tax ID number, both state and federal. To me this is just good business since you can save by not paying tax on supplies. I also use a personal credit card. I had a business card, but I found the interest rate was higher on the business card than a regular card. (9.9% verse 5.9%) Been using a regular card for over 20 years. Of course that's not such a big deal if you pay off your bill every month, but I find on a large purchase, I don't usually get it done in one months time. I also use my debit card (visa) for purchases because there are no interest charges. As far as business reputation with a business card, I don't think that matters as much as getting established with suppliers. After that, you have plenty of credit references. Just my 2 cents.

[Mecianne]

Originally posted by framinzfun:
I know these seem to be pretty elementary questions, but I'm new to all this stuff and I'm trying to understand it all.... next question is when the credit card application asks for Tax ID number (I am a small business with no employees and hence no federal ein) do I use my SSN? Same here. We are a sole proprietorship...just myself & my husband. We applied for an EIN anyway. Actually, we were required to have one before we could get our business licenses and our sales tax license. Situations like the one you mentioned are simplified when you have this number. It basically is just like an SSN for your business; an identification number. You can apply online in just a few mintues:

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html


Hope this helps.

Oh, and we use AMEX Gold. It itemizes everything and has no interest. You just have to pay it off every month. I have found the best way to handle this, so I don't get overwhelmed at the end of the month, is to make payments to them several times a month. If you can afford to do this, it saves tons in interest.

http://home.americanexpress.com/home/open.shtml?aexp_nav=gn_osbn

[wpfay]

I believe that somewhere in the fine print of your personal credit card's user agreement are the words "for personal use only". This would exclude using a personal credit card for business use, though I have yet to hear of anyone getting busted by the credit card police over it. Problems would result if somehow you should default on a card (not usually the plan) and business use was detected. That might result in criminal charges added (fraud comes to mind) to the financial woes.

framinzfun,
I would check with your CPA about which card to get. The benefits have been enumerated on other threads, recently too.
An F.E.I.N. is always a good thing to have so you don't have to pass out your SSN.