When to Increase the Limit on Your Business Credit Card

Increasing the limit on your business credit card can be advantageous to a small business owner. For example, if your business needs to make large purchases, you can use a credit card to make the purchases and earn rewards such as cash back or discounts with certain retailers.

Don't take on more debt unless you need it. If you carry substantial debt for more than three months, the interest penalties will far outweigh any benefits that come with the card. Before accepting an increased limit, check if there are any increased fees that go with a new limit, or if there are no card fees, like with a PC MasterCard. If you are in the habit of making regular debt payments, having an increased credit limit can improve your credit rating.

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