USD
Products Recommended
Small Business Credit Cards for the Home Business Owner
Small Business Credit Cards for the Home Business Owner
Business credit cards are a great way for small business owners to build their credit history. While this type of credit is not available directly to the general public, there are companies out there that offer business credit cards to business owners. These credit cards come with specific features that allow business owners to build up their credit history. If you are a business owner that has been established within the United States or Canada, you have likely already received some type of business credit card. The interest rates for business credit cards are relatively low when compared to other types of credit.
Credit card companies like small businesses because they are able to track and monitor all of your spending. In order to qualify for a business credit card, both you and the business must provide the credit card company with a few basic personal information, including your name, address and social security number. For a small business credit card, you will also need to provide your tax identification number (TIN), or employer ID number (EIN), as well as your Social Security Number (SSN). To apply for a business credit card, you will also need to be an active member of the company, which can include sole proprietors, partners or corporations.
When you apply for a business credit card, it is important to remember that the issuer has complete access to your personal credit history. The only information the issuer will receive from you is your business account information, which tells the issuer the amount of money you owe them and the balance of your business account. In order to apply for a business credit card with better rates, you will want to first begin to build up your personal credit history. When you apply for a credit card, make sure that you are still paying all of your bills on time and that you pay off as many of your accounts as possible.
When you apply for business cards, you will likely be asked for your social security number, EIN, TIN or social security number, and your personal credit score. The issuer will then check your personal credit score to determine whether or not you are a good risk. If you have a bad personal credit score, or if you have missed payments in the past, you will probably be turned down. There are a variety of different factors that the business cards issuer will take into consideration, including your current debt load, your credit history, and any outstanding debts that you may still be owing from your previous card accounts. The idea is to look at the bigger picture, and to be honest about your situation - if you know you are in over your head in debt, you will not be able to convince the issuer that you are a good risk.
If you have a good personal credit score, or even if your personal credit score is below average, you will be approved for business credit cards. You will be able to use these cards in order to help you boost your personal credit score and to help you establish a positive payment history with your new issuers. By taking advantage of business cards, you can slowly improve your rating and you can also help to establish a good payment history. When you apply for a business credit card and do not get approved, you will be setting yourself up to have more difficulty getting approval in the future. If you have had some financial difficulties in the past, it is important to remember that this does not mean that you cannot get approved for a business credit card - you just may need to work harder than other applicants in order to achieve it.
There are a number of reasons why small business owners choose to go with their major credit card issuers instead of applying for a business credit card of their own. Most issuers offer much better rewards and incentives than the individual credit companies. Additionally, they are able to provide their customers with greater service options and with better customer support. Finally, these issuers generally offer a lower interest rate on these accounts than individual lenders. However, if you have a solid credit history, strong business plans, and an excellent business plan, by all means you should consider applying for your own small business credit card.
0users like this.
