Answering The Webs Most Searched Questions About Business Credit Pt 3
Updated: Nov 15, 2022
The more entrepreneurs I meet I realize some common traits of them:
They don't know what they don't know, so their business suffers and potentially fails
They are too afraid to research business credit because it's a foreign concept.
I don't want to come off as a failure.
I need to make sure you have the preparedness to get your business off the ground without drowning in interest fees. It's hard to claim to be a mentor to people if so many are wondering.
Accessing it is such a powerful tool for any entrepreneur and it's a shame more people aren't taking advantage of it.
Because of that, I wanted to open up the floor to answer some more commonly asked questions regarding business credit.
Do you need to pay taxes on credit card points?
Thankfully you do not have to pay taxes on your credit card points. This is free "money" you earn as a reward for spending actual money.
Credit card points are a byproduct of using a specific card.
Some business credit cards offer great rewards like 4x points earned for every dollar you spend on advertising for your company.
With that specific card in mind, let's say you spend $1000 on an ad. That will grant you 4000 points to redeem with certain stores, airlines and hotels.
This is why I encourage people in my mentorship to choose their next card wisely. It's one thing to get a high utilization on a credit card. It's another to have a card that can get you to stay at a fancy hotel practically for free. I do it all the time. I love going on an adventure whenever I want.
How do business credit cards work?
Business credit cards work just like regular credit cards except you use them for your business.
For example, if you own a marketing consulting agency, you can use a business credit card to pay for things like:
Purchasing needed expenses like a software subscription.
Scaling your business fast without a loan.
That last point is key to what I teach in my Credit Stacking mentorship. By taking money from a high utilization, 0% interest business credit card, you can scale your business much faster than if you were trying to make it paycheck to paycheck and pay off a massive loan with a high-interest rate.
Where can I get a business credit card?
While the answer may seem like common sense, you need to own a business to get a business credit card. To be exact, you must have at least 25% ownership of a business or LLC to apply for a business credit card.
Even then, you need to get approved for a business credit card. There are unadvertised rules the banks have that prevent entrepreneurs from getting a business credit account.
In the Credit Stacking mentorship, I'll train you on how you can maximize your chances of getting approved for a business credit card. The skills you learn will help you scale your business and obtain financial freedom faster.
Stop paying out of pocket for your business. Scale it up much faster with less burden on your finances by using a business credit card.
Didn’t get the answers you were looking for? Check out some of my other blogs to expand your knowledge on business credit.