Apply for a Business Credit Card even without a Credit History

Applying for a business credit card without a credit history is sometimes difficult to get approved by lenders but there's a chance and it's not too late. The early it is, it is much better. Find out the steps you need to take.

Creditors and investors usually prefer business partners with good to excellent credit history. This is the reason why businesses who haven’t established a credit history are finding it difficult to deal with lenders and investors.

If you are new entrepreneur, you don’t have to worry because has all businesses the chance to build its credit history any time. Below are steps on how to start building your credit history:

Register with a Business Credit Bureau

Having your company registered with a business credit bureau is the first important step you need to do to build a credit history. The country has two (2) major business credit reporting agencies – Dun & Bradstreet and Experian.

Here is how you can apply for business credit from D & B:

1. Visit their official website or you can also call their toll free helpline at 1-800-234-3867.

2. You have to make sure that you have all the necessary information about your company such as your company name, address and contact numbers of your business. Also, they will ask about what type of business you have, the name of the owner/s of the business, the year it was started, the number of employees you have (if any).

3. Once you have finished the registration process, you have to wait for a few days for the business credit application to be completed.

However, If you want to speed up the processing, you can pay $29.99 using your credit card. You will then receive your D & B number in just about ten (10) days.

Apply for a Secured Business Credit Card

Once you are done signing up with a business credit bureau, the next step is to start building a solid credit history for your business or company. The easiest way is to acquire a secured business credit card.

This type of credit card is specifically created for small businesses with no credit history or with bad credit. Credit card companies that offer regular business credit cards usually require good to excellent credit so it is your best option to just apply for a secured business credit card for starters.

Lenders and investors consider business owners with no credit as high risk applicants. Since a secured business credit card applicant is required to submit a security deposit on their account, this will serve as an assurance that in case of default, there are funds that would be available to the credit card issuer.



Credit Cards Resources

* Business Credit Card Reviews
* Reward Credit Cards
* Free Credit Report

Business Credit Cards- the Answer to Business Difficulties

Every business faces many challenges along its path. This is especially true for small businesses that have just started and are still trying to gain footing. However, even long time businesses are not exempted from difficulties, particularly when it comes to financing.

Fortunately today, a business has more choices when seeking financial aid. Business credit cards are one of the most efficient means of financial support that a business can acquire with ease. Do business credit cards really provide the solution you need? If yes, in what particular ways can it help in improving your business? Let’s discuss these advantages one by one so you can see why getting a business credit card is a practical choice.

Build up your business credit. One of the best things about a credit card for business is that it helps a newly started company establish credit history. As long as the business cardholder stays within the given credit limit and payments are made on time at all times, there should be no problem maintaining an excellent credit history.

Manage your accounts more easily. Managing finances has been made easier with the help of business credit cards. By keeping your business finances separate from your personal savings, you’ll be able to keep track of your business expenses efficiently, set up your business budget, and make informed financial decisions for your company.

Do your accounting and pay your taxes with ease. Having a business credit card also comes in handy when doing your accounting and when it’s time to pay your taxes. Usually, business credit card issuers send quarterly and yearly account summaries aside from your monthly billing statements. Add to this, business credit card owners are often provided with an access to their accounts online. Take advantage of this very important feature in keeping your business account in close watch.

Distribute supplementary cards to your employees. Another great feature that is unique to business credit cards is the option to distribute additional employee credit cards using a single account. The business owner can set a credit limit for each of the supplementary cards that employees can use for the company’s expenses.

This comes in handy for unexpected expenses such as if a computer or machine needs repair or if there is a need to purchase an item in a hurry. All purchases charged to the supplementary cards will be reflected in your monthly billing statement so there’s no need to worry about the risk of using the employee credit card for personal purchases. Purchases made using the employee cards are all reported so you can use it as reference for your accounting or bookkeeping.

Benefit from the rewards. Business credit cards are also accompanied by different reward programs so you can get more from your expenses. Examples of these programs are the Frequent Flier Miles Reward, Cash Back Rewards, Gas Rewards, Hotel Rewards for Business etc. Choose a credit card for business with a rewards program that best matches your company so you can get the most rewards and privileges.


Credit Cards Resources

• Give your business the power of Credit
• Finance your Business with GREAT Business Credit Cards
• Business Credit Card Reviews

Avoiding the Risk of Credit Cards for Small Business

Many financial experts recommend the use of business credit cards for small business entrepreneurs. However, despite the advantages they offer, the success of using business credit cards largely depend on how you utilize your account. In this article, let’s talk about the possible pitfalls that are associated with the incorrect use of business credit cards and how you can avoid them.

Pitfalls of Business Credit Cards

Maxing out your credit. It could be tempting to maximize the use of your credit, particularly if you have a low credit line. Such a habit can pose a great risk because debts can easily pile up in your account until repayment becomes too difficult. Aside from this, maximizing your credit limit can have a negative effect in your credit score. Lenders can instantly consider you as a high risk borrower if your credit history shows that you have the habit of using your credit line to the full.

Charging all your expenses on your business credit card. Because credit cards are so convenient to use, there is also the danger of overspending. In fact, some business owners even charge personal expenses to their business credit cards. This can be a very dangerous habit since it can easily put you in a serious debt situation.

The issue of personal liability. When you apply for a business credit card, there is a statement in your contract that makes you accountable for all debts charged to your business account. This is known as the personal liability statement. Once you sign up for the card, you also agree that you will be responsible to pay for all debts that would be charged to your business credit card. Should you fail to keep up with your payments, your personal credit history is all at stake. Clearly, it is crucial to always be alert on how your business credit card account is used.

Avoid the Pitfalls of Credit Cards for Business

Being aware of the possible dangers on using business credit cards should not at all discourage you from getting one. Instead, it should make you become more responsible and vigilant in managing your credit card account.

One way to reduce the risks is to pay off your balances in full each month. Aside from minimizing the risk of uncontrolled debt, you also avoid unnecessary costs such as the additional interest rates and late penalty charges.

Another vital step in managing business credit cards is to check your account regularly. Examine your monthly billing statements for any errors or unnecessary purchases. This way, you can take the appropriate action immediately and avoid falling in the debt trap.

Make sure that you’ll only use your business credit card exclusively for business expenses. Before charging a purchase, make sure that it’s really important to your business. See to it that you can afford to pay off your charges completely without carrying over your balance for the next month. Finally, submit your credit card payments on time to protect your credit history.


Credit Cards Resources

• Business Credit Card Reviews
• Finance your Business with GREAT Business Credit Cards
• Business Credit Card Articles

Comparing Credit Cards for Your Small Business Profit

These days, the number of small business entrepreneurs who apply for business credit cards continues to increase. Credit card companies recognize this potential and that’s why they now offer a wide array of business credit cards that were especially created to meet the demands and needs of business owners.

If you’re a business owner, it’s up to you to make the choice. You may opt to get two or more business credit cards from different credit card issuers or you may stick with just one company. In any case, your choice should be based upon careful research and examination. This article presents some tips on how you can choose the right credit card for your business.

The Type Of Card that Suits Your Business

Business credit cards are not just meant to be tools for your spending. Some business credit cards come with rewards as well. Take for example business credit cards with cash back rewards. Generally, cash back business credit cards give its holders the chance to earn points from their credit card purchases. These points can be exchanged for cash rebates, gift certificates, or as credit to your account. Thus, every time you use your credit card for purchasing, you get points at the same time.

There are also business credit cards with frequent flyer miles and airline miles rewards programs. These cards are great for business owners who travel a lot to different States and countries to buy supplies or promote their business. By using a business credit card with a miles reward program, an entrepreneur can get huge savings from his travel expenses.

Then there’s also the chance to save on your gasoline expenses through business credit cards with gas rewards. These cards are advisable for business owners who use vehicles for delivering their goods to their customers. Each time they use their a credit card on their gas purchases, they also earn gas rebates on their account.

Yes, reward business credit cards are supposed to help you get more savings from your spending and increase your business profit. How is this possible? By choosing a card that matches your business’s spending and needs.

Examine the Interest Rate And Fees

Of course, the rates and fees vary from one business credit card to the next. Again, the interest rate is not the only fee that you should be concerned about when making a choice. Other fees such as the late penalty charge, balance transfer cost, annual fees, and transaction charges can add burden to your responsibility.

The best business credit card in the market not only comes with a low rate of interest but with reasonable fees and conditions as well. To find out the true costs of a business credit card you’re considering, read and understand the card’s contract. Here, all the fees and conditions of using the credit card should be clearly discussed including all the disclosures from the issuer. By understanding your business credit card agreement, you can better compare one potential credit card from the other.


Credit Cards Resources

* Business Credit Card Reviews
* Reward Credit Cards
* Free Credit Report

Business Credit Cards Online Resources-Beware

One of the most common techniques used by scammers today is “phishing”. If you’re not familiar with this term, it’s time to make yourself aware of this technique to avoid being a victim.

Phishing Scams and Credit Cardholders
First of all, what is “phishing”? Phishing is illegally acquiring personal information from another person through the internet. It is done using e-mails and false websites where an unsuspecting internet user enters his personal details or bank information without realizing that the source of the email or the owner of the website is a scammer. This method has been practiced way back in the early 90’s yet it has become more advanced in our time today.

Expert identity thieves would often “copy” or ”duplicate” a legitimate company’s website and use it to deceive customers into providing their banking information. The website will often look very similar to the original that consumers who are not aware of this scam is easily tricked and scammed. Sometimes an e-mail will be sent that contains links to these “fake” websites so that when the user clicks on them, he will be directed to the scammer’s site.

Online Business Owners – Beware!
Phishing Scams affect not only consumers but business owners as well, especially those with online businesses. Because of online fraud and identity theft, many consumers are hesitant to make transactions online.

The Federal Trade Commission is vehemently against such crimes related to online fraud and stolen identity. FTC encourages all consumers to be cautious when giving away their personal information especially over the web.

Although most credit card companies accept applications online, everyone is warned that not all websites can be trusted. Before filling up any type of online application, see to it that you are dealing with a reputable company. Check their status from Better Business Bureau. If it is a fraudulent company, chances are it will have record of complaint from its clients. Nevertheless, just because it doesn’t have record of complaint doesn’t mean you should easily trust the company. Do more research about its background and track record.

Be sure that the site uses a secured server. A secured site can easily stand out from “bogus” sites if you know the signs to look for. First of all, the URL of the website should begin with https:// which is a standard protocol for secured sites. You should also look for pad lock icon on the bottom right of your browser. Make sure that this icon is locked that indicates security.

Lastly, remember that banks and legitimate financing institutions will never as you to re-enter your personal details for confirmation. If you receive such an e-mail, don’t respond to it. Instead, call your bank and personally ask them about the e-mail you received. The best protection is to always be aware of how you provide and use your personal information. Keep in mind that fraud and identity theft is always a looming possibility and it is up to you to stay on guard and save yourself from becoming a victim.


Credit Cards Resources

• Give your business the power of Credit
• Finance your Business with GREAT Business Credit Cards
• Business Credit Card Reviews

Raising Your Personal Credit and Establishing Your Business Credit

If you’re thinking about venturing into business, better check on the status of your personal credit history as well. Although having an excellent personal credit is not a requirement in business, it is definitely an advantage. In what way?

To start a business, you’ll need financing assistance. Regardless of which form of business financing you wish to acquire- whether a business loan, a business credit card, or other financing option, your personal credit history would most likely determine the approval of your application. Obviously, lenders would prefer clients with an impressive personal credit over those with a history of poor credit.

Having an excellent credit score would not only guarantee a quick approval of your loan application, it also opens more doors of opportunities to qualify for loans with lower interest rates and better repayment terms. Although bad credit business loans do exist in the market, they are often accompanied with higher interest rate, lower credit limits, shorter repayment periods and more restrictions.

Build Your Personal Credit to Establish Business Credit

Clearly, building on your personal credit is one way to make things a lot easier for you. Another reason why you should work on raising your credit score is so you can establish your business credit or corporate credit as soon as possible.

Separating your personal credit history from your business credit is a very important issue. Having a corporate credit protects your personal credit history from possible damages that can result if the business you started doesn’t go as well as expected. For instance, if you were late in submitting your payments on your business loan, only your business credit score would suffer. Without a corporate credit, all your business transactions would directly affect your personal credit.

Usually, it takes about two years after establishing your business credit before you can completely separate these two entities. At the start, you’ll have to rely on your personal credit history when applying for business loans or business credit cards. As your business gains its footing however, lenders would begin to recognize your corporate credit history as the basis for their decisions. That’s why it is a must for new business owners to register their businesses with a business credit bureau immediately.

Dun & Bradstreet is the most popular business credit reporting agency in the US. Upon the start of your business, register for your D&B number so you can start building your Paydex Score right away. Just as timeliness of payment plays a major role in building a personal credit score, the same principle also applies to business credit. By staying within your credit limit and paying ALL your creditors on time, you‘ll be building an outstanding credit history for your business.

Building a solid business credit history is a crucial preparation for your company. By the time you’ll need further assistance to finance the growth or expansion of your business, you can be assured that you can get easily approved for business loans that require excellent credit.


Credit Cards Resources

• Business Credit Card Reviews
• Finance your Business with GREAT Business Credit Cards
• Business Credit Card Articles

Business Credit Cards- Essential Tools for Every Small Business

For small business owners and home based entrepreneurs, the benefits of using business credit cards are too many to be neglected. Consider the following advantages as to why business credit cards are essential tools for every small business.

Manage business expenses more easily. Having a business credit card enables you to separate your personal and business spending. Business credit card issuers also send monthly billing statements as well as quarterly and yearly summaries. Thus, you can easily keep track of where your business funds are spent and use control where it’s needed. These features are especially indispensable as the company begins to expand and expenses start to grow.

Free up your cash flow. It is crucial for a business to have a solid financial resource at all times. A business credit card comes in handy especially when emergency expenses arise. For example, let’s say that you received a large order from a customer at an unexpected time. Even if you don’t have the cash, you can charge to your credit card all purchases that are necessary to deliver the order on time.

Distribute your funds easily. Business credit cards also provide a more convenient way of distributing funds to your employees with the use of supplementary cards or extension cards. If cash is needed in a hurry, there’s no need to go through the long process of requesting for petty cash and wait for approval. Instead, an employee can charge the expense to his extension credit card that is linked to your account. To ensure that the funds are used strictly for business purposes, every purchase is reflected in your monthly billing statement so you can keep track of your employee’s spending.

Manage your account online. Most business credit cards come with an online banking feature which gives the business credit card holder the option to access his account through the internet. This way, you can check your account and send payments at any time straight from your own computer. Any entrepreneur can surely appreciate this convenience.

Get rewarded from your expenses. Many credit cards for small businesses come with rewards. Reward programs vary from travel rewards, gas rebates, and cash backs so you can choose the exact type of program that best fits your business. Enrolling with the right kind of business reward credit card can bring you huge savings and incentives from your spending.

Build your business credit. After registering with a business credit bureau, the only way to build a separate credit history for your company is to acquire new accounts. To build your business credit history, you can choose to apply for a business loan or a business credit card. Once you’re approved for a business credit card, pay attention to how you use your credit limit and how timely you are in submitting your payments. Remember, if you want to enjoy an excellent business credit, you must never exceed your credit limit and you should always pay off your credit card charges on time.


Credit Cards Resources

* Business Credit Card Reviews
* Reward Credit Cards
* Free Credit Report