Posts Tagged ‘Business’

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

Best Business Credit Cards – Separate From Your Personal Credit

January 10th, 2021

Finding the best business credit cards is all about what is current and happening right now. Many people may think they are offering you good advice because they worked in business for 20 years, but retired five years ago. Many times, their advice is no longer valid in many aspects of current business because so much has changed from five years ago in the business lending environment. Even six months can make a difference in the world of business and the best routes to take. For example, many people who worked in business might suggest that you go to Bank of America for unsecured business loans of credit if you are trying to get a new business started. This is only a valid option now if you have an established business that can show income verification from the past two years or more.

At this particular time, there are banks you can expect the top corporate credit cards from, but they could change again. That is why it is important that when receiving guidance on the topic that you work with someone who is in the current world of business, out there working for a living right next to you.

Furthermore, when you obtain a current list of banks and lenders, do not simply apply to everything out of thin air. There are tricks of the trade that can help you build your business credit profile the right way and get approved.

First it’s important you understand what the terms/conditions of the cards are. They are lines of credit with the name of your corporation attached to them that will not reflect upon your personal credit. What you do with your money on a personal level and for your business are completely separated with the use of a business credit card. This is as it should be. In fact, utilizing a business line of credit can help you pay off personal debt and help you appear virtually “debt-free” to lenders as a result.

Other than applying for the best business credit cards, it is a wise idea to learn how to attract companies to offer you unsecured lines of credit. You can accomplish this without income verification, seeing as your new business will not have any income to show yet. The game of attracting business credit card lenders is the similar as personal credit cards. If your credit score is 720, you will get many offers for a new credit card. If it is closer to 540, there will be no offers in your mailbox. By building your business credit score, you will receive more offers. You can establish good business credit the same way as personal credit-make payments on time and build positive trade lines.

There are a few credible companies that you must be invited to in order to become a customer. Chase recently made such changes so only the highest credit holders can obtain the best business credit cards offered by them. However, banks like PNC, TD Bank, Wells Fargo and US Bank are still offering low APR Cards and these cards show on your business credit report (separate from your personal credit), making them the Best Business Credit Cards.

PNC – PNC has 4 credit cards they offer to small businesses. Points Card, Travel Rewards Card, Visa Business (lowest APR), and the Business Options Card (your choice of 3 rewards programs).

TD Bank – Has a card that is called Simply Flexible Business. The more you pay each month, the lower your APR! The other card they offer is the Easy Rewards Business (accumulates points).

Wellsfargo – WellsFargo is the best option for obtaining a business credit card. This is because they have recently expanded to the east coast (of the US) and are aggresively lending. They have two options; a platinum card up to $50,000 line of credit and a Elite Card that offers credit lines up to $100,000.

US Bank – offers 6 different options, ranging from Cash Rewards to points to regular platinum card with lower APR (no point accumulation).

More important than ever before is structuring your company’s busin