Today we are going to be breaking down why you need to be using credit cards as an entrepreneur. So many people are afraid of credit cards, but I’m here to tell you they can be one of your biggest assets.
One of the most important parts of financial literacy is understanding and using credit properly. We use credit in all parts of our lives: to buy consumer goods, to buy property, and for financial leverage. If you aren’t using credit cards right now, you need to realize you are missing out on 4 main benefits.
The number one benefit is you can get an interest free loan. Credit cards are notorious for high interest rates, but often you can get one that is interest free and with no payments for 18 months. Rich people know how to use OPM (other people’s money) to make money. Putting an asset on that card means you are using someone else’s money to make money.
The second benefit is credit history. If want to do anything in the business world you need a good credit history. The sooner you can prove that you are a worthy borrower, the easier it is to get loans in the future.
The third benefit is rewards points. If you are spending a lot of money on your card each month, you are getting some back every month. Travel points and cash back all add up.
The final benefit is insurance. If you are using your credit card, you have insurance on purchases. You have insurance that if something you bought with your card gets stolen, you will get your money back. You do not take the hit - the bank does.
If you want to learn more about paying for business expenses, visit https://www.digitalnomad.com/Podcast/