How to Apply for a Business Credit Card to Establish Business Credit


One of the most frustrating parts of running a business is dealing with ways to establish business credit. Credit is needed for many financial purposes and learning to establish business credit will be an essential part of the successful growth of your business. The easiest way to get started is to apply for a business credit card that will help you to build a strong credit rating. Take the time to review the steps below. They can save your business time and money on using a business credit card to establish credit.

Things You'll Need

  • business checking account
  • EIN number
  • internet
  • ... Check if it is a Personal or Business Credit Card...
    When looking over the Business Credit Card offers you must be certain that it is actually going to be a business account. Many companies will give you a "business credit card" with your Social Security number on an application. While the credit card has a business name on it it will go on your personal credit record and will not help you to establish business credit. When you apply for real business credit cards you should use your EIN number not personal information.

  • ...Determine if it you can get secured or unsecured business credit...
    Unsecured business credit cards usually have better APR and rewards programs. Unfortunately a business that is trying to establish credit can not usually get an unsecured business credit card. Start off with a secured business card and switch to unsecured once you have established good credit for your business. The ehow article linked in the resource section has specific tips and information on doing this. The article is titled "How to Use a Business Secured Credit Card to Establish Business Credit"

  • ...Compare and research business credit options before you apply...
    Be sure to look and compare the following things before you choose a business credit card to apply for. Check APR to see if there is a jump after the introductory period. Check for the grace period on purchases so you can payoff the monthly. Paying off most monthly spending is important to establish business credit. Also check for any types of annual fees or other hidden fees associated before you apply for a business credit card.

  • ...Use the internet and local resources to make a final decision...
    Going to the bank where your business checking is set up is always a good option. Go there after you have done your internet research and have comparison offers for business credit card offers. It is important to find unbiased information online. The resource section contains a link to a list of business credit card comparisons to help you with an internet search. Once you have chose a business credit card to apply for move on to the next step.

  • ...Plan ahead to use the business credit card carefully ...
    To be safe and establish good credit you should not carry a balance larger then 10% off your total credit limit. So if your credit limit is $10,000 dollars you should not carry a balance more then $1000. To establish credit you must use the card monthly show activity. The account should be paid on time every month to establish business credit that is positive. To avoid paying APR and extra fees you should try to pay as much of the monthly balance as possible.

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