How to Get a Secured Business Credit Card

To get a secured business credit card, you'll have to provide some sort of collateral. Many times, these credit cards offer low interest rates and help you build a positive business credit history. You should consider one to see if it fits with your financial business plans.

Difficulty: Moderately Easy

Instructions

1. Select something you can offer as collateral. Real estate property, shares of the business or the business itself are examples of collateral.

2. Compare the fees and annual percentage rates of several credit card companies. Make sure that all fees are reasonable for your business.

3. See if any of the credit card companies offer beneficial rewards such as points for office supplies or travel. Some credit card companies give introductory incentives like zero percent interest for a 6 months or a year.

4. Consider service protection plans to prevent identity theft or to protect your business when funds are scarce.

5. Use websites that allow you to compare various credit card offers such as Value Plus Financial or Credit Card Flyers.

6. Apply for the credit card that is the best match for your business needs and make your payments on time.

Tips & Warnings

• Usually secured credit cards are visually the same as unsecured credit cards. No one but your bank knows you use a secured credit card.
• You can switch to an unsecured credit card after you build your business's credit history, which usually takes 6 months to a year.
• Don't offer something as collateral unless you can afford to lose it.
• Don't apply for the card if it has a penalty for early repayment of your debt.

Who Can Help:

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Resources

• Value Plus Financial
• Credit Card Flyers

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on 8/27/2008 A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be