#168: Tactical Tuesday: The Pros & Cons of Having a Business Credit Card

<p><strong>OVERVIEW:</strong></p> <p><span style="font-weight: 400;">Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the</span> <em><span style= "font-weight: 400;">Healthcare Entrepreneur Academy</span></em> <span style="font-weight: 400;">podcast presents the pros and cons of having a business credit card. If you choose to have one, he provides tips on how to use the card wisely.</span></p> <p> </p> <p><strong>EPISODE HIGHLIGHTS:</strong></p> <ul> <li><span style="font-weight: 400;">Jason shares an example of someone who funded their startup with a business credit. He changed his mind on the business and presumed he wouldn’t be held personally responsible for the debt. He was wrong. </span></li> <li><span style="font-weight: 400;">To open a business credit card, an officer is required to sign a personal guarantee which makes him/her liable for business expenses. There’s a clause in the contract stating this. </span></li> <li><span style="font-weight: 400;">Jason explains the differences between a small business credit card and a corporate credit card. A corporate credit card is more difficult to set up but it holds only the business liable for expenses versus the person. </span></li> <li><span style="font-weight: 400;">There are revenue requirements to set up a corporate credit card - $4million in gross revenue. Only C corps and S corps can apply - not LLCs. </span></li> <li><span style="font-weight: 400;">The great value business credit cards provide is their point system. Jason’s Chase Preferred card offers 3 points for every $1.00 he spends. For example, if he spends 10k in a year, using the 3-point system, that’s 30k points or $300 in cash value. </span></li> <li><span style="font-weight: 400;">Divide your credit card points by a hundred to get an estimate of its value in gift cards or if you were to cash it out.</span></li> <li><span style="font-weight: 400;">Set up reminders for your credit card payments to avoid paying interest. Jason advises not to trade interest for points. </span></