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How to Get a Business Credit Card With No Credit History

June 10th, 2021

Having a credit card purposely for your business is very useful but getting a business credit card with no credit history can at times be of a little challenge. Almost every successful small business owner would attest to the importance of keeping family and personal finances separate from the business’ finances.

It is important not to mix purchases made for the business with those of the family or for yourself. This is the reason why it is important to get a business credit card that will be used solely for making purchases meant for the business’ daily operations.

So why is that most small business or family business owners find it a lot more difficult to obtain credit card financing? The reason is quite simple indeed. When a bank for instance loans you or your business money in the form of a credit card, they must be sure that you can pay back the money, with any interests that accrue.

And the only way they can make this decision correctly is from your credit score or rating. Now most small business owners do not have a credit history for their business. So it becomes difficult for lenders to approve a credit card in the name of your business. However, it does not mean you cannot get a business credit for your business – it is just a little more difficult. So follow these 4 steps to get a card for your business approved quickly and start building an excellent credit rating for your business.

1. Start from the local bank or credit union

Go to the local bank or credit union where your business has an account at. Most small banks are willing to offer a business credit card to new businesses that have accounts with them, albeit without a credit history. If they approve the card for you, it is an excellent opportunity you can build on and get a good credit rating for your business. After that it will be a lot easier to get any card you want for your business.

2. What if the first option fails?

If it does not work out with the banks or credit union, you can turn to large online or e-commerce retailers such as PayPal or Amazon. If for instance you have a PayPal merchant account, you can apply for a card from them that will help you manage your business’ finances well. So if this applies to you, consider making an application with them and see if it will be approved.

3. What about a secured credit card?

A secured credit card, registered in your business’ name may your next and best option about getting a card for your business. Most banks will give you this card if you have a savings or checking account with them. You simply deposit money into the account. The bank will then give you a card secured on the account.

Every purchase you make will come straight from the checking account. But the card has every feature and capability you would otherwise expect to have on a regular unsecured card. This way, like we stated in earlier, the bank is able to monitor your credit behavior or how you run the business’ finances. If over a period of 9 months, the bank feels your credit behavior is satisfactory, they may upgrade it to a normal credit card.

This is one of the best ways many business owners have been able to get a credit card for their businesses and have built excellent credit ratings for their businesses, and you can do same.

4. This is important and closely related to step 3 above. Ensure that any card you secure for your business is reported to the credit reference bureaus under your business name. Some credit card firms do not report secured business credit cards. And if it is not reported, you cannot build the good credit rating you need. This way you can begin to build a credit history for your business.

If you follow these steps above, you can should be able to get a financial card

What’s Up With Prepaid Business Credit Cards?

February 10th, 2021

What are prepaid business credit cards and what types of benefits can they afford you? Credit cards have become a part of daily life for businesses and establishing credit for a new small business has become vital. Unfortunately, not everyone who starts up a new business has a sufficient personal credit history to qualify for a mainstream business credit card with a significant credit line. Prepaid credit can be the answer. Keep in mind that there are both benefits and drawbacks associated with the idea of prepaid cards. If you want to make the best decisions regarding this type of card, then you’ll have to shop around so that you can make an informed decision. But prepaid cards are capable of helping you to build up credit without putting you at risk of falling further into debt, or hurting your credit rating even further.

So what are prepaid cards? Prepaid cards are essentially like any other type of card as they are backed by the traditional companies except that they are completely controlled by the card user rather than by the credit company. The account for the prepaid card is opened with the help of a deposit from the cardholder which then becomes the limit. Whenever the cardholder would like to have more “credit,” they simply make an additional deposit. With a prepaid card, you must keep clear records of your deposits and expenditures because if you have a prepaid card and you try to spend more than you have deposited to the card, your purchase will be denied. In other words, prepaid credit cards, including prepaid business credit cards, operate a lot like gift cards in that you can only spend the limit on the card and nothing more. This makes these a prepaid credit cards an excellent option for individuals and businesses that are looking to build more credit.

There are numerous advantages associated with prepaid credit which differ somewhat from the advantages of traditional business credit cards. For example, in some ways prepaid business credit cards are more advantageous because it isn’t possible to go into debt when using a prepaid card for your business, primarily because your ability to spend is limited by the balance on the card and how much has been deposited into it. Another advantage of prepaid business cards is that there are no interest charges and you can use these prepaid cards absolutely anywhere that traditional business cards are accepted. Finally, prepaid credit make it possible for you to build credit because the majority of the companies offering them report the payments that you make to the credit bureaus.

Because they offer the same convenience as a traditional business card without any of the worry, a prepaid business card might be the answer if you are starting a business and have less than stellar credit. All you have to do is shop around to find the one that works best for your business and apply online. Good luck!