Business credit cards have become very popular in the past few years. More small businesses have started to offer their employees their own credit cards with the banks providing them with a line of credit up to a certain amount for making their payments on time. This has helped many small businesses and mom and pop operations to get their foot in the door in a growing economy. The problem is that most small business credit cards are not widely available because the banks deem them too risky for business use. So, how does one get approval for a business credit card?
Before you apply for a business credit card, you will first need to find one from a reputable company that has been in business for at least five years. Most credit card companies will conduct a credit check on the business before they give the business its own credit card. This is the first step in getting approved for the business credit card.
The credit report that you will receive from the credit check will show all of your payments histories with the company, your employment history, and your net income as well. You will also want to make sure that your company has a solid financial footing and can make money in the future. All business credit cards will require that you pay an annual fee, but you will be able to avoid paying any interest charges by having a good credit rating. If you have no prior credit history, this will take some time to establish, so don't hesitate to take advantage of a business credit pre approval loan.
When you have secured business credit, you will also need to set up a business bank account. This is where the money for the credit card will go and it's usually where the business gets its debit card from. You will need to be sure that you have a current business bank account so you can start the application process. Remember, if you have business credit already, the bank will already have your business bank account, so you won't have to apply for a new business account.
When you apply for business credit, you will need to provide information about your current company as well. The credit report will need to have your name, address, phone number, Social Security number, and current employer. This is information that will be used to make your loan applications more manageable. It is a good idea to try to get a copy of your credit report before you apply for credit so you will know what information will be required.
Once you have applied for a business credit card, you will need to make sure that you follow the application process carefully. Most companies will send you a confirmation that will outline the various steps you need to take to get your new credit card. You will most likely receive a VISA or MasterCard credit card, but depending on the credit card provider, you may also receive other types of cards like a reloadable prepaid debit card or a store card.
As soon as you qualify for the card, you will need to start using it. It is not a good idea to spend money with your credit card all at once because this can cause you to fall behind on payments and cause your credit score to fall lower. If you don't pay off the balance in . . . . . . time, your credit card company may raise your interest rate or even take away your card. Before you select your credit card, it is a good idea to do your homework. You should always shop around so you are not stuck with a credit card offer you cannot control.
These days it is easier than ever to find a business credit card that you can use for whatever you need it for. If you need to make a large purchase such as a yacht or a home, you will want to make sure that you get pre approved. Pre approved means you will be able to secure financing before the seller has an opportunity to find out if he will be able to get his hands on the money. So if you have a credit limit that you need to meet, get your business credit pre approved as soon as possible.