How to Get a Business Credit Card
Starting a business can be both fun and hectic at the same time. Money always seems to be an issue in business and with the unpredictability of the economy, many are looking at ways to get credit and money to keep and even grow their businesses. One way is to get a business credit card. Let's take a look at how to do this.
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Instructions
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Start looking at current rates and annual percentage rates of credit cards. Many send out offers when you register your business name and will give incentives such as 0% for a fixed period. Amazon.com and Capital One are two good examples. Check how the interest is applied. Is it a daily rate or compounded monthly, either of which will have different payment amounts. Check the fees involved.
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Fill out an application. Make sure you have a list of your assets and liabilities handy. These will be required for the application. Have a good idea of your credit rating. This will affect your interest rate. Most business card lenders are looking for a single or combined credit score of 675 and up. This will give you the best rate and highest line of credit.
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Search for the terms that best suit your business. Set up a chart to compare long before you even apply. The more applications, the harder your credit score is hit and the lower it gets with each credit application and check. Apply when you have finally narrowed your list down to the two that you think will give you the best offer in terms of interest, payment schedules, fees and line of credit. Do not forget to check with the credit cards that you have in your wallet already. Many times they will have an offer that will rival the ones you have found simply because you are an existing customer and have a good credit history with that company.
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Make sure that you pay back the credit card as per the agreement. This will ensure a good rating and possibly even get you a larger line of credit.
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Tips & Warnings
Make sure you do your homework. Check rates, special offers and payment and interest structures regularly.
Do not over extend your credit. Defaulting on payments will adversely affect your business credit rating and jeopardize your credit rating.
