4 Personal Expenses Never to Charge on Your Business Credit Card

Owning a business and being your own boss comes with its benefits, including company credit cards that have great rates and rewards. But with great power comes great responsibility.

You might want to blur the lines between business and personal expenses, and just charge everything to your business credit card. But that's a huge no-no.

Here are 4 personal expenses you should never charge on your business card.

1. Personal Expenses from Business Trips

You're already on a business trip and charging the hotel, transportation, and entertainment for your clients to the business card. Surely it wouldn't hurt to add a round or two of golf?

Well, here's some bad news. Modern lenders not only look at your payment history but what you've charged to your cards as well. If they see that you've been using the business card for personal things, they can reject your application for a business loan.

If you want to treat yourself to a nice spa treatment while you're in a hotel on a business trip, just charge it to your own credit card. Learn more about some of the best ones to use.

2. Cash Advances

A cash advance may sound like a good idea when you need some cash on hand, but it's terrible in the long run. You don't get a grace period, which means interest starts accruing the moment you withdraw money from an ATM.

Not only that, but the interest is almost always awfully high, and there's a transaction fee when you withdraw too. The fees and rates pile on top of each other, which never makes it worth it to get a cash advance.

3. Cryptocurrency Investments

You may feel like you'll strike gold by investing in cryptocurrency, but charging the investments to your business credit card is not the way to go about it. First, many credit card companies have banned that.

Second, crypto investments are usually large amounts, which can easily cause you to fall behind in payments. You can end up with huge debt that's attached to high-interest rates.

4. Pricey Purchases

If you've got your eye on a flashy new car but don't have enough saved up for it, don't put the purchase on your business credit card. You can argue that the car would be used for company purposes, but it's still a bad idea.

Your card utilization ratio would go up and affect your credit score negatively. The result? An interest rate that immediately skyrockets.

Keep Personal Expenses Separate from Business Ones

It may be tempting to put your personal expenses on your business credit card, but it can lead to some obstacles. This is especially true if you want to keep the door open for business loans in the future.

So avoid potential legal troubles and just change those personal expenses to your regular credit cards. It'll make life much easier and it won't hurt your company.

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