How Many Credit Cards Do You Need As An Entrepreneur?

As an entrepreneur, you should have three credit cards, and below, I will give you my opinion on why you need three and which credit cards you should pick.

Why do you need to use credit cards for your business?

Credit cards can be a great tool to help you create wealth when used correctly, and I recommend using them whenever possible, but the question I get a lot is, how many credit cards do you need as an entrepreneur?

How Many Credit Cards Do You Need As An Entrepreneur?

I recommend having three credit cards for entrepreneurs: one for your business, one for personal ( to buy things that are not business-related and one American Express charge card.

For daily use.

You should have a credit card that you will use for your daily use, this is the credit card you use to pay your groceries, you pay for the movies or going to the concert, you pay when you take your family out etc.

You use this card to pay for everything that you buy daily.

The main criteria on picking this card is the cash back, you need to pick the card with the highest cashback in your country.

You can google the best credit cards with cashback in your country and pick the one with the highest return.

Cashback is the percentage of money that the bank will pay back when you buy the items using that credit card.

Usually, this varies from 0.5% to 10%, like an instant discount in our daily use.

For now I leave in Mexico, I have santander like you credit card that pays me 5% in entertainment and restaurant and 6% in pharmacy, that is the card I picked for my daily use.

For business use.

You are an entrepreneur, you have business expenses, and sometimes you must buy courses and software to pay for tools like hosting and domain names.

All these expenses you need to pay to run your business need to have their credit card, here you can apply a business credit card or you can just get a personal credit card and use it to pay your business expenses.

The reason for this is that you need to separate your business expenses and your expenses.

This will help you track your money better, and also, if you pay taxes like me, it will help you have a deduction in your income tax.

The criteria you can use to pick this card is that it must be a travel card, you see it need to be those cards that gives you benefits related to travel, that can be hotels, car rentals or air travel.

If you like to travel by air like me you can get a card that offer you travel miles, if you like to stay in good hotels, you can find a card that other you free nights or vacation destinations.

Depending on where you live, you should be able to get the best travel card in your country.

American Express.

The third and last card you should have is an Emerican Express, if you make enough money I would recommend to get the American Express Platinum.

There is something special of having American Express, these cards attracts wealth people around the globe and just having one gives you a certain status in the society.

I am not recommending this card to show off, that is not the point, but in my experience, if you go to a business meeting with the customer and when pay the bills with your American Express Platinum, people tend to trust you more, do not ask me why but this works all the time.

Another reason to have an American Express Platinum card is that it gives you access to the best dining services in the world, discounts on many airlines, and they have the best concierge services globally.

All these things are beneficial for use entrepreneurs, and sometimes you need someone to find you the ticket for that exclusive event ( just call American Express Concierge, and they will help you with that).

If you need someone to help you to plan for your vacation, they can do that, it is like having a free assistant at your disposal.

I can write all day to explain the benefits of having American Express Platinum, but this is my advice: get one, and you will thank yourself.

I know American Express cards have hefty annual fees, so if you are starting or do not have a credit history, start with a basic card, and when you build a credit history, you can apply for this card.

I explain how to build your credit history here.

Note.

These credit cards will not help you if you do not use them correctly; you need to pay in full all the amount you have every month before the payment due date. This way, you will never have to pay a single cent in interest.

Final word

For me, you need three credit cards: one for personal use, one for business use, and an American Express credit card for high-item purchases.

Always responsibly use your credit cards, pay your debt at the end of each month, and enjoy these cards’ benefits.

If you want to learn more about using credit cards to create wealth, please watch this masterclass.

 

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