Owning a credit card for your business will make things easier for you by managing your expenses and tracking any other accounting costs. However, business credit cards, just like your own personal credit cards, must be spent wisely. Everybody knows that owning business cards has its perks, there are many risks involved as well. We will take a look at the benefits and detriments of business credit cards.

Benefits

Qualification
It's way easier to qualify for a business card than your own personal line of credit or even a bank loan. If you have a solid history, or your business is somewhat established, several credit card companies will be more than willing to give you a card to use.

Establish Credit
Owning a business credit card will establish and improve your overall credit score. This is helpful when you apply for that big loan in the near future.

Reward Programs
Several credit card companies offer reward programs for using their services. You could earn frequent flyer miles, gas rebates, cash back, or many other rewards just for using their card.

Financing
When you run your business, I know you'll need access to money here and there. Plenty of small businesses will face cash flow issues when there is not enough around to buy that much needed expense. This is a time when your business credit card will come in handy when you need office supplies, business equipment, or even more start-up capital.

Detriments

High Interest Rates
Business credit cards are a great way to buy things that cost more than they are actually worth. You pay more in the long run thanks to high interest rates and hidden fees, and depending on your credit card company, annual fees just to own the card.

Purchase Protection
When you pay with your regular credit card, nearly every credit card company will offer some sort of buyer protection. However, your business credit card might not have the same perks. This means more difficulties fighting damaged goods, excessive charges, and even fraud.

Lack of Security
Business cards are not safe from fraudulent charges from a credit card thief. Always keep your card in a safe place and watch out who you give your card number too. Also, you should enforce a strict policy about any type of purchases made on your account, and what qualifies as an authorized purchase. Employees have been known to go crazy with a business card, if they're not watched closely.

Credit Problems
The majority of business credit cards demand a personal guarantee, which means you have to give them your social security number and details of your credit history if you want to apply. However, this also causes problems for your own credit report in the future when credit companies report your business activities on your personal credit report, or you become liable for any late payments or exceeded credit lines.

I know having a business credit card is a wise decision, but you have to know the potential pitfalls to help you make the right choices. By getting rid of or controlling your spending habits, you will eradicate any tricks and increase the overall value of your business.