A majority of about 70 percent of businesses is funded by external capitals and you’ll be surprised to know that credit card cash is one of the most important sources of these funds. In the case of small businesses and startups, entrepreneurs use their personal cards to meet business expenses. And, most of the times, these entrepreneurs may not know the best ways to use up these forms of spendings and avoid wastage and debt. Credit cards can be used to your advantage by aligning credit card points to your spendings.
Using your credit cards to pay for your business spendings isn’t possibly the worst idea, the key lies in keeping the credit debt as less as possible, by paying the minimum monthly money on all the cards, while putting the rest of the money into the card which offers the highest rate of interest. But, there is something else you could do instead of paying the down debt. You could make use of the credit card rewards instead. Each of your card offers different types of rewards, and each of these rewards are applicable in specific situations. So, you would require a proper strategy to make the best use of these rewards.
Here is an article that will help you turn your credit cards into a great source of income, instead of a burden. Read along:
(1) A good entrepreneur would know where all his/her company spends most of the budget. Using this knowledge you need to select credit cards that offer rewards in those categories. For example, if you are the kind who ends up spending a lot of time travelling for work, you may want to go for a card that offers rewards on plane tickets, cars for rent, hotel rents, or other travel related incentives.
(2) Make sure you have different versatile cards, so that you don’t end up with lot of reward points that you may never use. One good strategy is to accrue around a million points for a year and then switch to a cash-back card.
(3) To maximize your credit points, make sure you select cards with transferrable points only. It isn’t necessary that you will earn a bunch of points by accumulating a lot of cards. 2 to 3 cards with transferrable points, such that your points can be transferred to a variety of transfer partners can let you earn a lot rewards as well. Flexibility is necessary.