From the course: Financing Your Business

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Earning rewards and building credit

Earning rewards and building credit

From the course: Financing Your Business

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Earning rewards and building credit

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- If you do have a business credit card that's reporting to your personal credit, and you're using it heavily, for example, to earn rewards, keep in mind that most issuers report the balance to the credit bureau at the end of the billing cycle, not after you make your payment. Remember that, they report near the end of your billing cycle, not after you make your payment. Let's say you have a credit card you're using for rewards, and you charge $2,000 on it, but your credit limit is $2,500. That's a high balance compared to the credit limit. What you might want to do is go online and make a payment before the end of the billing cycle. So the balance that's outstanding at the end of the billing cycle is lower. And the amount that's reported to the credit bureaus is lower. You can look at your credit card statement, and it will tell you when the billing cycle ends. I should also mention that a business credit card can help…

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