When you run a company, having a dedicated credit card is a must for managing your expenses. Offering competitive limits, affordable rates, and attractive discount opportunities, these cards can help simplify your spending and budget-balancing. However, business owners must use them responsibly to avoid overspending. If you’re thinking about applying for an account with your local bank, use these tips to help you take control of finances with confidence.  

How to Make the Most of Your Business Credit Card

1. Choose a Suitable Rewards Program

Similar to their personal counterparts, business credit cards tend to offer a diverse array of rewards for account holders. Take time to review these options thoroughly so you can select a rewards program that can benefit your organization.

For example, if you have to visit clients often, you may benefit from a card that offers travel points. If you operate a company vehicle throughout the week, you might prefer a card that provides cash-back on fuel purchases.   

2. Review Statements Regularly

While today’s banks offer fast and accurate financial reporting services, you should still review your business credit card statements when they arrive.

By taking a closer look at this data, you can get a better idea of how funds are being spent and how much of your limit is used. You’ll also be able to check for mistakes — such as unapproved or fraudulent charges — that could be affecting your total balance.

3. Steer Clear of Personal Purchases

Even if a business credit card is in your name, you shouldn’t use it for personal purchases. This could complicate your financial reporting and potentially put you at risk of overspending.

If you authorize employees to use the resource, provide a clear, written, and signed set of rules on how to use it. For example, employees should be expressly forbidden from making purchases without your permission or using the card for personal needs.

4. Pay Balances Every Month

Make an effort to reconcile your credit card balances every month. These regular payments will make it easier to keep debt low and avoid interest charges.

Having a consistent payment history can also improve your company’s credit score. As this score improves, your bank may qualify you for lower interest rates or higher credit limits.

With locations in Elizabethtown, Hodgenville, and Magnolia, KY, Magnolia Bank makes it easy for business owners to meet with financial specialists and explore financing opportunities. This bank will help you find a card that suits your company’s spending habits and provides practical rewards. Once you’ve enrolled, you can conveniently access your account online to track spending and pay bills. To learn more about their business banking solutions, visit this institution online or call (270) 358-3183.