What is the Method of Using a Business Credit Card?

What is the Method of Using a Business Credit Card?

Credit cards have long been a payment tool, a substitute for cash to carry out buying and selling transactions.

In fact, it is no longer a secret, that credit cards are more identically used as debt media to meet consumer needs.

Consumptive needs such as the purchase of electronic equipment, vehicles or tours, which have no added value over time.

Now, the question is, can a credit card be used for a productive business?

In fact, it's perfectly legal to use a business credit card.

There is also using a business credit card, you can use credit card cash withdrawals as capital to start or expand a business.

What is the Method of Using a Business Credit Card?

With a note, the business being tried does not violate the law and is not illegal or unlawful.

Indeed, even though there are now many access to capital offered by conventional banks or other financial institutions, credit cards are attractive to use.

The reason? because business people don't take long, like when for example applying for a KTA without a credit card at a conventional bank.

So, if you make a vow to use a business credit card, first understand the things that will be discussed below. The Right Type of Business Credit Card for SME Entrepreneurs

Not all types of credit cards can be used for business.

There is also, so that business people can feel the benefits and optimal facilities in carrying out their business, they need to choose the right type of credit card.

The following is a review of credit card criteria that are suitable for use in business.

1. Large Credit Limit

This means for a business person to have a fairly large business credit card restriction.

The reason? because certainly business capital is not a small amount.

Moreover, with the existence of a large business credit card restriction, it can be used when later you need business bonus capital.

So, if you want to make a credit card, make sure the limit is large because you never know when your business will face a lack of capital.

2. Method of Increasing Credit Card Limit

In fact, each bank has a different method of increasing credit card restrictions.

Generally you can do with 2 things:

  • Contact the name center that increases the credit card limit

Usually you will be asked to prepare various documents as a requirement to increase the credit card limit.

Some of these documents, namely, KTP, NPWP, SIUP from your business.

Don't forget to include a statement message if you want to increase the credit card restriction.

Later, the bank will ask you, why do you want to increase the credit card restriction.

You can share a clear alibi, for example to increase business capital.

After that, you can send the above documents to the address of the designated bank or arrive directly if needed.

You need to be careful if your request does not want to be immediately granted.

Because, the bank will definitely carry out an evaluation to decide whether your application is approved or not.

This usually lasts for several days.

  • Apply for a Credit Card Increase Through the Application

Currently, many financial institutions have cellular banking applications.

Now instead of contacting the middle name, you can apply for an increase only from the application on the smartphone.

Usually when using this method, there are banks that do not require you to send documents as a rule.

However, there are also those who don't need it, because they will see and evaluate your transaction habits, credit debt ratio and others. II. Things that must be tried so that the application to increase the credit card limit is approved

Before approving your application, the bank will conduct an evaluation of your card.

Well, in order to be approved, you really don't have to do the following things.

  • Use a credit card actively

Make sure you have been actively using the credit card for 1 year.

That way, the bank will consider that you are a trustworthy customer.

They will look at the bills you paid regularly over the past year, as a special consideration.

  • Discipline of paying existing bills

If you are able to pay the bills each month, the bank will take this into consideration.

Because, that means you are a potential customer and have a good personality

So, it's always wise to use a credit card so that you have a good credit history.

  • Total Debt Ratio

The significant consideration from the other bank is the debt ratio.

That means, if you have large debt arrears, it will be difficult for the bank to approve your application.

Moreover, the bank considers that while you can pay credit card bills, how come you can be in arrears?

You really shouldn't have a debt of 30% from each month's income.

It's okay to actually explore a lifestyle, but don't let your expenses exceed your income.

  • Fixed home address

Even though they seem disconnected, the domicile that doesn't move also affects them.

So, if you already have a permanent residence that does not change, update the records to the bank.

Because the financial institution must obtain easy access, if later there is a failure to pay.