Using cash back rewards from business credit card
"A C-Corp is not a pass-through entity, any applicable taxes would be paid by the Corporation, which is a separate legal entity from yourself. If you use the points to purchase something for yourself, that would constitute ""income"" to you, and would be taxable on your personal income tax."
"Besides your credit score, there are other smart reasons to have a second line of credit.  (Your credit score doesn't affect you the majority of your life, but when it does whoooooo boy does it.) Should the first bank you have credit with create or find a clerical error, a second line of credit can provide a cushion while you sort it out with the first Should physically damage a card, or have it stolen, having a second backup at home will be helpful as you wait for a replacement. Getting a second line of credit with a different institution than your first allows you the flexibility to cancel one and move your business should the deal become unfavorable to you. Multiple lines of credit in of itself is a plus to your credit score (albeit a small one) You can organize your finances.  One card handles the recurring payments in your life, the second incidentals.  The expected activity type might make it easier to detect fraud. When you get your second line of credit, get it from a different institution than where you have any other business now.  (A credit union if you can, or a small local bank).  Make sure there is no annual fee, and if there is a reward, be certain it is worth it.  Cash back is my favorite because I can spend cash where I like, whereas ""points"" have to come out of product in their catalogs.  Lower interest rate is best of all.  Even though you always plan on paying it off every month like clockwork, you might one day run into an issue where you cannot.  Lower interest rate becomes very important in that plannings scenario." You said: Use a credit card (to get my 3% Cash back) to withdraw cash ... Then you said: Is there any way to do this without paying a cash advance fee (or any fees in general)? Right there you have stated the inconsistency.  Withdrawing cash using a credit card is a cash advance.  You may or may not be charged a fee for doing the cash advance, but no credit card will offer you cash back on a cash advance, so you can't earn your 3% by using cash advances. As others have mentioned, you can sometimes get close by using the card to purchase things that are almost like cash, such as gift cards.  But you have to make a purchase. "There are two things I can think of that might be different in other countries: Until 2013, American Express, Visa and MasterCard prevented businesses from charging extra for credit card usage, and credit card surcharges still illegal in several states. Since credit card companies add a surcharge to credit card purchases, and merchants can't pass that onto credit card users, they just make everyone pay extra instead. Since everyone gets charged the credit card surcharge, you might as well use a credit card and recoup some of that via ""rewards"" points. Almost all credit cards here have grace periods, where you won't be charged interest if you pay back your loans in full within some period of time (at least 21 days). This makes credit cards attractive to people who don't need a loan, but like the convenience that credit cards provide (not carrying cash, extra insurance, better fraud protection). Apparently grace periods aren't required by law here, so this might be common in other countries as well." Everyone else seems to have focused (rightly so) on the negatives of credit cards (high interest rates) and why it is important to pay them off before interest starts accruing. Only Marin's answer briefly touched on rewards.  To me, this is the real purpose of credit cards in today's age.  Most good rewards cards can get you anywhere from 1-2% cash back on ALL purchases, and sometimes more on other categories.  Again, assuming you can pay the balance in full each month, and you are good at budgeting money, using a credit card is an easy way to basically discount 1-2% of all of the spending you put on your card.  AGAIN - this only works to your advantage if you pay off the credit card in full; using the above example of 20% interest, that's about 1.6% interest if the interest compounds monthly, which wipes out your return on rewards if you just go one month without paying off the balance. Every reward program has to have a funding source. If the card gives you x percent back on all purchases. That means that their business is structured to entice you to pump more transactions through the system. Either their other costs are lower, or the increased business allows them to make more money off of late fees, and interest. If the card has you earn extra points for buying a type of item or from a type of store (home stores improvement in the Spring), they are trying to make sure you use their card for what can be a significant amount of business during a small window of time. Sometimes they cap it by saying 5% cash back at home improvement stores during the spring but only on the first $1500 of purchases. That limits it to $75 maximum. Adding more business for them, makes more money for them. Groceries and gas are a good year round purchase categories. Yes there is some variation depending on the season, and the weather, but overall there is not an annual cliff once the season ends. Gas and groceries account for thousands of dollars a year these are not insignificant categories, for many families are recession proof. If they perceive a value from this type of offer they will change their buying behavior.  My local grocery store has a deal with a specific gas station. This means that they made a monetary deal. Because you earn points at the grocery store and spend points at the gas station, the grocery store is paying some compensation to the gas station every time you use points. The gas station must be seeing an increase in business so theoretically they don't get 100% compensation from the grocery store.  In cases where credit cards give airline miles, the credit card company buys the miles from the airline at a discount because they know that a significant number of miles will never be used. Q: Where do you think the money comes from for the cash-back reward? A: The seller is charged a % transaction fee that is higher than the amount of the cash back reward.  So ultimately the seller is paying the cash back award and then some. This plan wouldn't work. It can certainly help build a credit score, but remember that businesses gain credit differently from individuals.  Depending on the country, there isn't usually a national register of business credit ratings the way there is for individuals.  The credit record you'd be gaining is with your own bank only. Banks will usually base your business credit record on revenue and transactional loads rather than merely on having and holding a credit card.  That said, it isn't always that easy to get a business credit card and so it is a useful thing to have for credibility with clients (depending on the type of work you do). A credit card can also sometimes work out cheaper (and faster) for financing small overdrafts than a regular business overdraft facility.  That said, I've found that larger loans over a five-year term can work out much cheaper for an established business than they would for an individual, even where the business itself has no history of using credit. 5% cashback? Wow. No, this would not generally affect your credit rating. You aren't altering anything that is generally tracked by the credit rating agencies. You put a purchase on your credit card which temporarily increases your utilisation, but then immediately pay it off, leaving your utilisation practically unchanged.