Should You Put Your Business On A Credit Card?
I was asked to review a different credit card website and thought it was the perfect opportunity for me to talk about something I wanted to discuss anyway.
We have all probably been tempted at one point or another to start putting our business expenses on credit card. It can be so convenient to get those articles ghost written or get another website set up without waiting until payday.
With all the different credit cards for fair credit out there and available on Request Credit with fantastic promotions and introductory low rates it would seem quite silly not to participate.
The only problem with putting your next website project on your Visa Card is something that most people overlook and that is risk.
What if your project doesn’t pan out as well as you had hoped and suddenly you got a large credit card bill with no money to pay it off?
Suddenly you find yourself in debt. If you do choose to use a credit card for your business endeavors make sure you have the money in your checking account to pay it off before you even charge it.
Be aware that even though you may say, “Oh I will pay it off by the end of the month.” Things can happen that will derail those plans.
Plus, people spend more when they use a credit card compared to cash because it doesn’t hurt as much to spend the money.
Keep all these things in mind and be wise in your finances. You don’t want to end up $72,900 in debt like I did. Please post your thoughts about charging business expenses.
Progress Overview
I’m with you, Amy. I don’t like the idea of putting business expenses (or any other expenses for that mattter) on a credit card. I started my website small and have added features by reinvesting as the earnings allowed. If I couldn’t afford to upgrade to a larger hosting plan, or my own domain, or various other features I just had to wait. It takes patience, but it is really the best way to grow a business.
Amy,
Yes, it’s known that people who have credit cards (usually) spend more than they have. I know this from experience and it definitely leads you into debt – not freedom!
We are in slavery if we have debt, especially consumer debt. The best way to take care of that is to cut up your credit cards and don’t apply for any more.
Quick question on surveys? Have you heard of a company by the name of Make Money Taking Surveys? I received an e-mail from Rob Benwell promoting it. Just wondering if it is worth it as I’ve been looking for a simple program for my wife to make money.
Thank you for sharing your debt reduction process with us. God bless.
Patrick Whitson
The Comic Collector
Amy, I spent the last year paying off $8,000 of business credit card debt. I do not recommend putting business purchases on a business credit card. Too much risk involved. Frugal dad is right. – Debt Free Hispanic
Patrick,
If you want to know how I made money with surveys you can check out –
Get Paid To – Massive Passive Income
http://getpaidtocompleteoffersandsurveys.blogspot.com/ or do it for free here. I don’t have time since I work full time but I make about $20-$30 month doing periodic surveys and offers.
Why is that those affiliate marketers often talk about using credit card to buy ppc?
Is it bad idea to use credit card?
Joe,
Yes it is a bad idea to use a credit card for your PPC. Pay Per Click can get out of control cost wise. That is why I rarely use it.
Amy,
Thank you very much for the link. I went ahead and purchased your e-book for my wife (hey, I’ll check it out myself as well) and also to help you out in your debt reduction.
We also have a bit of debt to pay off and yes, you have to pay it off like your life depended on it. God bless.
Patrick
Thank you Patrick. I truly appreciate it.
Amy, do you PPC to promote this blog or only you niche websites? Wondering about your results.
I don’t use ANYTHING to promote this blog actually. Never have. This blog is more of a personal thing for me than business. It is my online journal.
I strongly disagree. Many business CC’s have amazing cash back bonuses. By not using one, you are essentially missing out on free money. Suppose you had to buy a new chair and desk for your office. If you use cash, or debit, then you don’t get anything (besides the desk and chair). If you use the credit card, you can get cash back, prizes, etc for purchasing something you needed to get anyways!
Just log onto online banking and pay it off instantly, and then you don’t accrue any interest. =)