How Can Business Credit Cards Help Your Credit Score?

Did you know that business credit cards can help your credit score? It might sound surprising, but these cards can play a big role in building your credit when used the right way. Let’s break it down.

For starters, business credit cards often don’t report spending to your personal credit unless you miss payments. This means you can keep your personal credit utilization low, which is a big factor in your credit score. For example, if your personal card is maxed out for a home project, using a business card instead can keep your credit healthy.

Another perk? On-time payments. Just like personal credit cards, paying your business card on time shows lenders you’re reliable. Over time, this good habit adds positive marks to your credit history.

Lastly, opening a business credit card adds to your available credit. Let’s say you have a $10,000 limit across your personal cards. If you get a business card with a $5,000 limit, your total credit jumps to $15,000. This lowers your credit utilization percentage, which can bump up your score.

With these benefits, business credit cards can be a smart tool to build and protect your credit. But remember, like all credit tools, they work best when handled with care. Ready to dive deeper? Give us a call to see how business credit cards can set you up for success!

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Not sure where to start? Contact us today to find out more about how business credit cards can help your credit score.

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