Don't Pay for These 4 Expenses With Your Business Credit Card

All kinds of businesses can benefit from a credit card. Business credit cards can streamline your spending and make tax season a lot easier, plus many come with perks that can save you time and money.

These can include purchase protection, reimbursement for trusted traveler programs, and bonus rewards on spending for marketing, internet service, and trips to the office supply store.

Despite these great features, a business credit card isn't right for all your spending. Here are a few times you should skip the credit card and use a different form of payment instead.

1. Your personal spending

First and foremost, a business credit card isn't to be used to cover your own spending. It's solely for your business expenses. If you want to buy new clothes, get a new personal computer, or take a vacation that isn't work-related, use your personal credit card.

Consumer credit cards have rewards programs that are much more geared toward the kinds of purchases you make in your everyday life. And one of the reasons to get a business credit card in the first place is to keep your personal and company spending separated.

2. A large purchase -- sometimes

A credit card can be an excellent way to make a large purchase, under certain circumstances. Here are those circumstances:

Business Credit Card Comparison

Consider these business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.

Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.

Offer	Our Rating	Welcome Offer	Rewards Program	APR
Ink Business Unlimited® Credit Card Apply Now for Ink Business Unlimited® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn $750 bonus cash back Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.	Earn unlimited 1.5% cash back on every purchase Earn unlimited 1.5% cash back on every purchase made for your business	Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 18.49% - 24.49% Variable
Ink Business Preferred® Credit Card Apply Now for Ink Business Preferred® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn 100,000 bonus points Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.	Earn 3 points per $1 in select business categories Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn.	Intro: N/A Purchases: N/A Balance Transfers: N/A Regular: 21.24%-26.24% Variable

• You have the cash saved for the expense and intend to use your credit card to get rewards and purchase protection, then pay the card off immediately.
• You have a 0% intro APR offer and are using it to finance a large purchase over time, paying it off entirely before the intro period is up and your card starts charging its go-to rate (which could be 18%, 20%, or more).

If you don't fit either circumstance, I caution you against using a business credit card to make a large purchase, unless you truly have no other options.

A better choice for a large necessary purchase you can't afford outright (such as equipment for your business) is a small business loan. It's likely to come with a lower interest rate and more favorable payment terms than a credit card, like set monthly payments and a fixed payoff date.

3. Payroll

If you have staff working for you, you might wonder if it's okay to pay them using your business credit card. This isn't a great idea, for a few reasons. For one, your credit card's terms and conditions may not allow you to cover payroll with the card.

And if you're in a situation where you can't afford to pay your employees otherwise, it's worth taking a closer look at your books and making sure you're not overextended. Your staff works hard and they deserve to be paid -- and if you can't actually afford to do so without relying on credit, you may need to make some cuts somewhere.

4. Your mortgage or rent

It's not super likely that you'd be able to charge your business's rent or mortgage payment on a credit card anyway. But if you're given the option, this is best avoided.

For one thing, you'll likely be charged a processing fee to use a credit card for a rent or mortgage payment, if they're accepted -- that could be 2% to 3%, making your rent cost that much extra. And even if your credit card pays that high of a percentage as rewards, you're only breaking even. And now you have a potentially larger problem: paying off the credit card and avoiding interest charges.

Honestly, you shouldn't need to pay for the space that houses your small business with a credit card. If you don't have the money on hand in your business checking account and need to use a card to cover this cost, it's worth considering whether you're getting in over your head with your business expenses vs. income.

Ready to get a new credit card for your small business? I applaud this move. Just don't use it for any of the expenses above.