Plumbing businesses utilize credit cards for running their day-to-day operations and purchasing parts. Using these business cards open you up to rewards that you can enjoy for your personal or professional use. There are many things you can do from credit cards rewards.
As a business owner, you might want to know about the ways to maximize your credit card reward points. It is vital to stay vigilant regarding your rewards since interest payments, and other charges can cancel them out. Let's go over the few ways to maximize your credit card rewards.
1. Use Your Miles for Travelling Purposes
In case you have a travel rewards card, the miles and the points will have different values, depending on your usage. If you redeem it for traveling purposes, it will be worth one or two cents. However, if you choose to redeem your points for online shopping or other options, it will give you half value.
Using the points correctly can help you get better discounts when traveling or looking for a hotel to stay. Therefore, it will be optimal to use the travel miles for traveling purposes to maximize the credit card rewards.
2. Take Advantage of Sign-Up Bonuses
Did you know that choosing a business credit card can also give you sign-up bonuses? If not, then it is something you need to look at when selecting a credit card for your plumbing company. Though signing up bonuses should not be the factor behind choosing a business card, it is worth considering.
It is also one of the best ways to maximize your credit card rewards. Many banks and financial institutions give you additional rewards when you spend a certain amount using their credit cards in a particular period. In a nutshell, you can use it to ramp your rewards quickly.
3. Deduct Your Expenses
Taxes are an integral part of our professional and personal lives. As a plumbing business, you need to have your taxes in the perfect order; so you don't end up on the IRS's watch list. Therefore, you should deduct interest payments as expenses.
It is vital to show the interest payments as expenses, just like any other overheads of your plumbing business. By doing so, you can ensure you use your rewards for other discounts rather than paying for interest.
4. Make Payments on Time
Interest drains up your finances quickly, and it also prevents you from enjoying the complete benefits of your credit card rewards points. Though using credit cards for day-to-day purchasing is a great way to reduce financial burden, it is a double-edged sword that can go the other way around.
Therefore, carrying a balance each month will impact the reward points due to the interest. For instance, you have a balance on the credit card of $20,000 that gives you 1% cashback and has an annual percentage rate of 15%. You will be getting $200 on it, but you will end up losing $250 in interest.
So, even if you are earning rewards, you can lose money by carrying a balance. Therefore, the most optimal thing to do is pay off the balance monthly to save you from owning any interest. It will help you maximize your credit card rewards points.
5. Select the Best Cards for Your Plumbing Business
Most importantly, the credit card you choose should be suitable for your business needs. There are two categories of credit card reward points:
- Travel Rewards (Miles or Points)
Cashback allows you to get money for a purchase you make, while travel rewards are useful for paying for flights and staying in a hotel. So, if your employees need to travel quite often, you can choose to go with travel rewards. And if they need to make purchases frequently, you can choose cashback.
A vital point to consider is that few business points give more rewards in you purchase items for particular categories. Therefore, if you choose a card according to your business’s spending trends, you can maximize your credit card rewards. Some of the categories that a plumbing business benefits from:
- Utility bills
- Office-supply stores
- Gas stations
How to Utilize Your Credit Card Reward Points Wisely?
Credit card rewards points can be a great way to enjoy discounts and other perks. But it is vital to use them wisely to reap the complete benefits they offer. So, if you want to utilize the credit card reward points in the best way, here are some methods you can follow.
- Have a clear plan regarding what you aim to achieve using your gift cards. Avoid being like a rational consumer who only thinks about the rewards after receiving them.
- Discuss with your tax consultant or adviser how to utilize the credit card reward points to avoid any kind of tax implications, if there are any.
- If you have a business partner, you can discuss with them to form a decisive strategy to use the reward points in the best possible way.
- You can use your creativity to use your reward points to increase the overall business productivity.
The best usage of credit card rewards points is for boosting your business. So, if there is any way you can utilize these points to enhance your operations, you should give it a serious thought. And if you want, you can use the reward points to pamper yourself.
Credit card reward points can play a part and be a stepping stone for your business to reach a new level. You can use credit cards to manage your plumbing business's finances while keeping an eye on expenses. But the most important thing is to choose the right credit cards to reap these benefits.
So, you can turn to VERGO, which gives you cash-back points, cash flow analytics, virtual project cards, and many more items. It will help you manage your finances while ensuring complete data protection. So, take advantage of it today to get your hands on the exceptional benefits VERGO offers.
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