If you run a small business and have a need for business credit cards to help your business grow, you should first be aware of your options and how often you can apply for them. Small businesses in particular can have some serious difficulty getting their businesses started without the help of credit cards and other lending tools. While you won't have as many options available to you as larger companies, you will still be able to get the help you need for getting the ball rolling and getting your business off the ground.
The first thing to remember about business credit is that it is not available to everyone. You must have good credit, and you must have a viable business plan that shows how you are going to use your card. There are many ways to demonstrate your ability to pay back your debts, so make sure that you put together a solid business plan before you apply for your business card. Your lender will want to see that you can handle all the responsibility associated with running a business, and they will likely ask to see your financial records as well.
If you have been thinking about getting a business credit card, but you aren't quite sure how to go about it, there are some things that you should keep in mind. First, you will likely be required to have some sort of collateral security for the card, so you will need to do some serious research into what your options are before you apply. If you have any properties, home equity, etc. that you are willing to put up as collateral for your business credit card, you will want to make sure that you thoroughly understand all that is involved with putting up any type of collateral for such a loan.
The second thing to keep in mind is that you may end up being charged an interest rate on your new credit card. This is completely normal and should not deter you from applying for a business card. Most business cards charge around four or five percent, depending upon the issuing company, the card, and your business' financial history. The interest rate is in place to offset the risk that the company has when they issue you this new card.
Once you have determined how often you can apply for credit cards for your business, you will also want to consider the terms of those cards. Some credit companies offer attractive introductory rates on the first year of membership, which can make credit card shopping much more enticing to you. However, after this introductory period runs out, you may find that your interest rate suddenly jumps significantly.
Also, keep in mind that you may be able to get a higher credit limit on your business credit card, as well as higher credit limits in other areas. You may also find that you qualify for discounts on many of the services that the credit card offers. Keep in mind that the perks offered to new members of business credit card companies differ greatly from the deals offered to current members. Be sure to shop around and compare the different credit card offers, because your specific needs may vary significantly from other applicants. You should look closely at the APR, Annual Percentage Rate, and any other fees or charges that might be attached to the card.
Finally, before you submit an application for a business credit card, you should make sure that your credit history is in good standing. You should contact all three of the major credit reporting agencies – Experian, Equifax, and TransUnion – and request a free credit report, at your . . . . . . earliest possible convenience. You will need this report to determine how successful your application for a business credit card will be. If you find errors on your report, you should dispute these errors. If no errors are found, then you may begin the application process.
When you are ready to start the application process, you should find out how often you can apply for business credit cards. Apply early to ensure that you do not miss the last rounds of offers for business credit cards. If you want to be certain that you get the best rates and terms, then use one of the many online resources that can help you with your business credit card application.