Can Families Benefit From a Business Credit Card?

What do you think of when you think of a business credit card? Maybe you think of a corporation that needs to spend hundreds of thousands of dollars every year, or at least of someone who’s employed by a large company to make purchases on their behalf. However, everyday families may also need to use a business credit card if the adults of the family own a sole proprietorship. Here are a few ways families can benefit from a business credit card.

1. Easily Separate Business and Family Purchases

Families often make a lot of purchases – even more than singles or couples do. At the end of the year, if you have to go through all your purchases and separate business and family purchases, that could take a lot of time and energy. It’s much easier to have a dedicated business credit card that you make all your business purchases on, so you can separate the two categories.

2. Make Purchases Easier If Both Adults Run the Business Together

If both adults in your family-run your business together, a business credit card can make it even easier to make those purchases. Simply add both individuals to the account, then make sure each person has their own credit card. You can use those individual credit cards to make purchases whenever necessary, and access the same account to see purchases that the other person has made.

3. Get Rewards to Use for the Whole Family

Just because you’re using a business credit card, that doesn’t mean you have to make sure your rewards go to the business. It’s common for people to use business credit card rewards for their personal life. If you’re interested in using a business credit card, you can also take the rewards points that you earn as part of the business and use them to save more money on your personal spending.

4. Turn Large Purchases Into Sign-On Bonuses

If you have a large purchase coming up for your company, you may want to look into credit cards that have especially large sign-on bonuses, as those sign-on bonuses can give you a significant amount of money. For example, the Chase Ink bonus is a $750 introductory cashback bonus, but you have to spend $7,500 in the first three months with the card. If you have a particularly large set of purchases coming up for your company, you can more easily hit the necessary level for the sign-on bonus.

Conclusion

A business credit card can be incredibly helpful for sole proprietorships, and that can include sole proprietorships with owners that are part of a family. If you’re running a business by yourself or with your partner, you may want to consider investing in a business credit card. It can make taxes easier, give you better benefits on your purchases, and even help you achieve large cashback bonuses when you make certain purchases in the first few months of owning your card