Can You Use A Credit Card To Start A Business? 

best credit cards of 2022

I am Pedro H. of Miami Florida

Starting business with a credit card may not be the desired tactic for many entrepreneurs, but for myself, using a credit card was one of the best decisions I made. I understand that this sounds like an advertisement, but I assure you, it is not. It is a reality for many entrepreneurs who are starting out. 

Many people strive to use cash to pay for services and items without having the hassle of a monthly payment, a debt. I understand this frame of mind, we all do. But what if people don’t have the money to start a business, should they keep waiting and waiting until they have the cash? Let’s be honest here, time is money, and the longer we wait to start a business, the less time we have on this planet. 

When I started my Ecommerce business that sells gifts for pets,  we didn’t look at business expenses as a set back. At the end of the year, when we do our taxes, we can write-off the interest. As long as you understand your unique tax situation, you should not let a few hundred dollars worth of credit card interest stop you from your business quest. 

While many people may say that paying cash for everything is the best and smartest way, how many people could simply pay cash for a new car in order to get to work? How many people can afford the amount of money that it costs to buy their family gifts for Christmas or the holidays. Life costs money, and it costs money to make money. And most people, unfortunately, do not come from rich families where they can always ask mom and dad for financial assistance. 


When we began to create our business, we looked at the funds we had available. We had cash put away. I have never been a person who enjoys putting all their eggs in one basket, so I used debt. This way I could look at my checking account and be comfortable with the cash reserves in case of a business emergency.

Nowadays there are many credit card companies that even give cash back and don’t have annual fees. Many credit card plans even have a grace period so if you pay the entire balance amount within a certain time frame, no interest will be owed.  

I look at credit card debt in a positive way. Sounds pretty crazy, right? What I mean is that when I owe a debt, it makes me work harder as I now have to be accountable for myself. I have to be productive. Some people may need a consequence in order to be more efficient, like myself. 

Going back many years to when I was a broke teenager, if it were not for a credit card, I would not have been able to travel to Europe to meet my extended family. 

Everyone says, “Save up the money and pay with cash.” Yes, that is definitely great advice, but unfortunately life doesn’t workout like that for a vast amount of the population. Life is expensive – rent, car, food, gas. Where is the money to save after these expenses?  

When we talk about using a credit card to start a business, we realize that we can get to work. We are using debt to make a profit. That is the goal. 


*I am NOT a professional financial expert and let this be a disclaimer. Please consult a professional when making important financial decisions.

However I do believe that if there is something that is stopping you from achieving a dream or a goal, like up to 5000$ in credit card debt, I think that it may be counterproductive to not pursue. Let’s be honest here, for some people it may take years to save up 5000 dollars, while they continue working a job that they dislike, only because they were given the advice to pay for everything with cash up front. 

What if you did use a credit card to start your business and it becomes profitable in the first year. There is a question we don’t want to be asking ourselves when we are old and unsure if our business ideas would have been successful or not. “What if?”

The key idea here isn’t so much about the credit card debt but the business idea itself. What if you do have a great idea? You have done your research and you are excited about possible success. You then look in your bank account and see that you only have 200 dollars. You also notice that you have good credit and that you are approved by many of the ….


1. Chase Freedom Flex

2. Wells Fargo Active Cash Card

3. Capital One Venture X Rewards Credit Card

4. The Platinum Card® from American Express

5. Amazon Prime Rewards Visa Signature Card 

I personally enjoy using credit cards that offer cash back. If you use your card to make many purchases, you may be able to avoid paying the interest if you pay the balance quickly, and you could still receive the cash back. Being organized is key to optimizing your finances. 


When I was younger, I remember people bragging about how much cash back they received from their credit cards or how much free food they redeemed due to the amount of points they accumulated. 

I understand that this blog article may seem like a big advertisement, but it is not. The point I continue to make is that many people use debt to get ahead in life. You simply need to be smart and organized and know how to manage money and debt. There is good debt and bad debt. 

I assume that you would not meet many people telling you not to start a business because you only have access to credit card debt. Especially if your business idea and plan is stellar. 

In my life, without using debt, I would never have owned a house. I may not have ever started a profitable business. I was never great at saving money, but I was always an efficient worker, and equally efficient at paying my debts. 

So here I am with a business that allows me to provide for my family and live a good life. 

Do your research when starting a business. You may have the next big idea. Your only obstacle may be the financing. Will some interest payments stop you from your goals? Make the right choice. 

Thanks for reading. To share is to care.


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