In Too Deep?
The top 5 signs that you're relying too much on your business credit card
Your business credit card has helped you succeed, but are you flashing that plastic too much? John Ulzheimer, president of educational services for Credit.com, a financial-services and educational website, offers these warning signs of business credit card abuse:
Canceled cards: It's hard for banks to land new customers, so they cancel cards only if they fear a client is nearly insolvent.
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Hitting your limit: It's bad to max out your credit card because credit agencies red-flag cardholders who are tapped out.
Credit cutbacks: If your bank suddenly cuts your card's available credit to the amount you currently owe, the message is this: You probably can't handle any more debt.
Interest rate hikes: Missed payments, too many late fees and maxed-out cards can all trigger steep rate hikes. It may be time to shop for a lower-rate card and get your charging under control.
Sinking credit ratings: Problems with your business credit card can affect your personal credit rating and vice versa. Ulzheimer says banks look at both sides of your financial life to determine ratings.