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

Building Your Business’s Paydex Score

As a business owner, one of the things you should be interested about is your Paydex score. Do you clearly understand what a Paydex Score is? What role does it play in building your business credit? How can you build up an excellent business credit?

Understanding Your Business Credit Paydex Score

Paydex is a system developed by Dun and Bradstreet (D&B) - the leading credit reporting agency in the US. The Paydex Score is used to calculate a business’s credit history in terms of figures. For individuals, it is the equivalent of the FICO score. However, the Paydex system is only applicable for business entities.

Once you’ve registered with D&B, you also begin building your business’s credit history. Nevertheless, take note that not all lenders and merchants report to D&B. Thus, it is important to make sure that the lender or supplier you’re dealing with reports your payments to the credit bureaus.

Included in your business credit report would be your Paydex Score. This scoring system ranges from 0 to 100, with 90-100 considered as an excellent rating. A score of 80 and below is considered as good while a score of 70 and below indicates bad credit.

Obviously, a higher Paydex score would give a business the advantage of qualifying for loans or accounts that require excellent credit. Banks, lending companies, suppliers, merchants and investors all rely heavily on your business credit history when it comes to closing deals. Therefore, every business owner must be concerned about raising his business credit rating.

How to Raise Your Paydex Score

What factors affect your Paydex Score? Just like with your personal credit report, the timeliness of your payment plays a big role in building your business credit. If current funds aren’t enough to cover all your debts from different creditors, try to pay off your largest debts first to avoid incurring high interest rates and penalty charges. One or two late payments may not create a big damage to your score but constant late payments would certainly hurt your business credit.

What if it’s not possible for you to meet your payment due date because of a financial crisis? In this situation, the best thing to do is to contact your creditor right away and ask for an extension of your payment deadline. Explain your situation to your lender and ask for some adjustment in your payment terms. Most lenders would be willing to do so especially if your records show that you’ve been a good and trusted customer in the past.

The types of credit you have are also determining factors in attaining a high Paydex score. Acquiring a business loan or a business credit card can be great tools in building business credit. Remember, to build an excellent credit, you should make it a point to stay within your given credit limit and to submit your payments on time at all times.

Reviewing your business credit report from time to time is also advised. In case you may have some issues with the information contained in your report, you may contact D&B and request for an investigation.


Credit Cards Resources

* Business Credit Card Reviews
* Business Credit Card Articles
* Reward Credit Cards

Building Your Business Credit through a Secured Credit Card

A business with no credit history or with a bad credit history can definitely benefit from a secured credit card. In this article, let’s talk about the basics of secured business credit cards and how it can help you establish or rebuild your business credit. Hopefully, by the end of this article, you can consider a secured credit card as one of the ways to finance your business.

Basic Details about Secured Business Credit Cards

As we’ve said, secured business credit cards are especially provided for companies with bad credit or no credit. What are the requirements you need in order to get approved for a secured business credit card account?

First, an entrepreneur must open a savings account and maintain the minimum required balance in his account. This is called a security deposit which would be used by the bank in case the account holder fails to pay off his credit card balances. For this reason, the amount of security deposited often determines the credit limit that would be given to the account holder.

If you placed a large amount in your security deposit, then you can enjoy a higher credit limit. On the other hand, if you can only afford a few hundred dollars as security, your credit line would most likely be low. Nevertheless, you can expect a guaranteed approval of your application regardless of the status of your credit.

How It Can Help Your Small Business

If you currently have a bad credit history, you may not qualify for business credit cards with the best deals. Still, you don’t have to suffer from bad credit forever. In fact, as soon as you get approved for a secured business credit card, you can immediately start working on improving your credit. How?

One important thing to remember is to be consistent with your payments. If you’re really serious about raising your credit, you need to be conscious about submitting your payments on time. Don’t forget that a single delay or miss can easily pull down your credit score. It is also crucial to pay attention to your spending and to stay within your given credit limit.

You may need to wait at least six months to a year before you can see an improvement in your credit history. Needless to say, by managing your secured business credit card correctly, you can be sure that you’ll be enjoying excellent credit history soon.

What to Expect About A Secured Business Credit Card

You may find that secured business credit cards have higher interest rates and fees compared to credit cards that require good to excellent credit. Understandably, because of the risk involved, credit card companies charge higher fees for their services. Still, this doesn’t mean that you should settle for unreasonable charges.

If you need a secured credit card for your small business, you need to be willing to spend time and effort in exploring the market to search for the right one. Read credit card reviews and compare each one more accurately by reading the fine print. Find a secured credit card that regularly reports your payments to the credit bureaus so that your credit history can be updated right away. Lastly, after improving your credit, request for an upgrade to a non-secured business credit card account.


Credit Cards Resources

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

The Difference between Business Credit Card and Corporate Cards

If you think that business credit card and corporate credit cards are the same, let this article help you compare the differences between the two. If you own a small business, you’ll be glad to know that small business credit cards are especially meant to serve small business entrepreneurs like you.

Small Business Credit Cards

Credit card companies realize the potential of the small business clients and for this reason, they have introduced small business credit cards in the market. Unlike a corporate credit card, applying for a small business credit card is not at all complicated. In fact, even newly started business can get approved for a business credit card using the business owner’s personal credit history. But what if your personal credit score isn’t as impressive as you want it to be?

Secured business credit cards are designed especially for business owners with bad credit. To make up for your bad credit, a collateral or “security” would be required and this can be your home or a property that you own. Both an unsecured business credit card and a secured business credit card are great tools in establishing a separate business credit for your company.

Corporate Credit Cards

What about corporate credit cards? As its name implies, these business credit cards are exclusively offered to large business owners or corporations. If you take a look at the business credit cards advertised today, all of these are credit cards for small businesses. Credit cards for corporations are actually not advertised at all.

Unlike a small business credit card where you can apply online, corporate credit cards involve a more complicated procedure. How can a large business obtain a corporate credit card? Before the application is submitted, the business owner along with his partners will set up a meeting with the corporate credit card’s representative. In this meeting, the specific needs of the company would be discussed as well as the requirements they need to submit for approval.

Since a corporation is often a partnership and involves a huge number of employees, one can expect that it also has complex needs. The credit card company would see to it that these specific needs are properly addressed and that the corporate credit card will duly serve its purpose.

Business Credit Cards – Partners for your Business

Clearly, no matter what type of business you own- whether it may be a small business, homebased business, medium-sized business or a corporation- there is a business credit card that is designed to suit your needs. If you’re a small business entrepreneur, there’s no need to be afraid that a business credit card is just made for businesses with incredibly huge expenses. Even if you only have a few business expenses, getting a business credit card is worth the deal.


Credit Cards Resources

* Business Credit Card Reviews
* Business Credit Card Articles
* Free Credit Report

The Importance of Paydex Score in Building Business Credit

You may already be familiar with your credit report and your FICO score. But if you’re a new business owner, are you also understand the elements that make up your corporate credit? Do you know what Paydex means? This article discusses the basic points that you should know about business credit.

Your Paydex Score

Your Paydex Score is the equivalent of your FICO score. Dun & Bradstreet – a major business credit bureau, uses this method of calculation to measure a business’s credit. Once you’ve registered with D & B and you have received your D&B number, your financial dealings with creditors and other businesses will be reflected in your business credit report. When you obtain a copy of your credit report from D&B, part of the report includes your Paydex score.

A Paydex score ranges from 0-100, with 90 and above considered as excellent, 80 as good or acceptable, and 70 and below indicates a poor rating. Just as individuals aim for a high FICO score, business owners also want to reach a high Paydex score and maintain an excellent standing.

How to Raise Your Paydex Score

How do you achieve a high Paydex score? Timeliness of payment plays a vital role in how your business credit score is calculated. Of course, the best way to achieve an outstanding score is to always submit your payments on time. If you can pay your bills earlier than your due date, then the better it would be for your business credit.

Would occasional late payments affect your score? Yes. In fact, even a single late payment can pull down your score by a point or two. Nevertheless, if your average score is around 95 or more, falling one or 2 points down would bring you to a score of 93 which is still considered as an excellent rating. On the other hand, if your average score happens to be 82 flat and you’ve lost 2 points because of occasional late payments, then that would bring your total score down to 79 which can be considered as a poor rating.

Thus, as much as possible, it is crucial to be on time in submitting your payments to all your creditors. What if you can’t afford to pay all your creditors on time? It would be better to pay off your highest bill first to lessen the impact on your credit score.

Using Your Paydex Score to Get a Business Credit Card

Obviously, a high Paydex Score makes you an ideal client for banks and lenders while a low score makes you a high-risk borrower in the eyes of creditors. It is interesting to note that the best business credit cards in the market always require good to excellent credit.

However, if you have a poor business credit, you may consider getting a secured business credit card as a tool to raise your Paydex score. Understandably, a bad credit business credit card would have higher interest rates and lower credit limit than credit cards that require good credit. Nevertheless, by using your credit card account and paying your bills on time, you can make an improvement in your score within just a few months. Find a credit card that would report your payments to the major business credit bureaus as it is the only way you can raise your Paydex score. Eventually, you can ask your credit card issuer to upgrade your account once you’ve raised your credit score.


Credit Cards Resources

* Instant Approval Credit Cards
* Reward Credit Cards
* Free Credit Report

Using Business Credit Cards in Business Solutions

If you haven’t yet recognized the benefits of owning a business credit card, it’s definitely a matter worth your consideration. Aside from enabling you to separate your business finances from your personal money, business credit cards offer more advantages. Let’s take a closer look at some of them.

Build your business credit.

As soon as you’ve applied for a corporate credit, it’s best to start building up your credit history with the help of a business credit card. You be already aware of the importance of having a corporate credit. A solid and excellent business credit prepares your business for its future growth and expansion. How can business credit cards help you build a solid credit history?

By using your business credit card for your expenses and paying off your balances on time, you are showing your worth as a borrower. Aside from timely payments, staying within your credit limit is just as important. Financial experts recommend using only 30% to 40% of your given credit limit but not more than 50% of your credit as this could send a negative impression on lenders.

Monitor your business expenses.

A business credit card can also help you in keeping track of your business expenses. Take advantage of the online account access that most business credit card issuers provide. This feature allows you to check on your account at any time without even leaving your office or desk. For a manager who handles a hectic schedule and so many tasks, this is a very valuable option.

You can also use your monthly billing statements as well as your quarterly and yearly account summaries as detailed references to your accounting. When it’s time to file your business taxes, these documents can also prove to be indispensable in determining which of your past purchases can be deducted from your taxes.

Get rewarded for your spending.

Some credit cards for business offer reward programs that can help you save more from your expenses. The basic reward programs for business credit cards are the Frequent Flyer Miles, Gas Rewards and Cash Back Rewards. You can choose a reward card that gives the incentives that complements the nature of your business.

For example, if your business is into a lot of traveling, you can certainly get more benefits from a Frequent Flyer Miles Business Credit Card. On the other hand, if you own a fleet of vehicles that you use in your business operations, a gas reward business credit card may be your best choice. If you’re in a buy and sell business, you may want to consider getting a cash back reward business credit card instead.

Be prepared for unexpected expenses.

With the help of a business credit card, you are ready to take on unexpected expenses at any time. Did one of your customers place an unexpectedly large order at a time when you don’t have cash? You don’t have to refuse this particular customer just because you lack the resources. Instead, you can simply charge everything you need to your credit card so you can deliver this order on time.

Having the option to make purchases instantly and pay them off at a later time is certainly one of the best things about owning a business credit card. The important thing to remember is to always pay off your balances on time to avoid the risk of credit card debt.

Credit Cards Resources

* Good Credit Credit Cards
* Instant Approval Credit Cards
* Reward Credit Cards

Managing Business Credit Card Debt

Starting up a business involves expenses. For most new entrepreneurs, a loan is a must in order to get the business started. Aside from business loans, additional support may be necessary in keeping up with the production and operating costs. Small business credit cards often provide this much-needed financial assistance to business owners.

Why Get a Business Credit Card Debt

Some people may be skeptical about obtaining credit cards for business because they are afraid that credit cards may lead to uncontrolled spending and debt. However, business credit cards can be great tools not only in keeping a steady cash flow but also in separating your business and personal finances. With the help of business credit cards, monitoring your expenses is also a lot more convenient and easy. How can you get the most from your business credit card? How can you avoid credit card debt?

Obviously, proper management and control is needed to avoid the risk of credit card debt. For instance, some entrepreneurs may be prone to charging their personal expenses on their business credit card but such a habit can easily lead to uncontrolled debt. As a business owner, you need to make sure that your business credit card is exclusively used for official business purposes.

Submitting your credit card payments on time is also crucial if you want to stay away from trouble. It could be tempting to pay only the minimum due even if you have the cash to pay your balances in full. But carrying over your balances from month to month also means paying for the additional interest charges. Thus, to avoid unnecessary costs, make it a point to completely pay off your charges each month.

Business Credit Card Debt Consolidation

But what if you’re already stuck in credit card debt? What can you do about it? A business owner has two options to solve this problem. One is by acquiring a debt consolidation loan to pay off all existing balances and stop the interest rates from accumulating further. By combining his credit card debts into a single loan, the interest rate is reduced and monthly payments are significantly lowered.

Another way is by getting a balance transfer credit card with low interest or zero interest. This would enable you to pay off all the balances you transferred at a low rate or zero interest. However, take note that the 0% APR is only applicable for a limited time, so you must take advantage of this opportunity by completely paying off all the debts you’ve transferred within the zero interest period.

Any of these two credit card consolidation options can work but in order to be effective, a business owner needs to ensure that he/she can pay bills without a single delay or miss. It would also be wise to avoid incurring new debts while still working on your repayment. Finally, once you’re done with your repayment, you need to a lot more careful about using your business credit cards to avoid falling in the same debt trap again.

Credit Cards Resources

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

All about Your Business Credit Score

All businesses –both large and small – all rely on good credit standing for a favorable stand with prospective lenders. By having an excellent business credit score, a business owner can be confident that he can obtain the financial assistance he needs at any time without difficulty.

But building a credit history for your company is not achieved in an instant. Time and effort is also needed in order to build a solid business credit. In this article, let’s discuss the necessary steps to establish your own corporate credit.

Ensure your business entity. The legality of your business is crucial in establishing business credit. First, you need to define the legal entity of your business. It can either be a corporation or an LLC (Limited Liability Company) to qualify for a bank loan. If your business is a sole proprietorship, you may not qualify for a business loan and it would be easier to apply for a personal loan instead.

Proof of existence. In order to be considered as a legitimate company, you need to have a physical address, a business telephone number, and a complete contact information. A website and an e-mail would not be a sufficient proof of your company’s existence since anyone can easily create a presence online. Having a physical address is what’s most important.

Obtain all necessary business permits and licenses. Make sure that you’ve secured all licenses and permits that are required for all businesses in your local state.

Register for a business tax ID number. A business that has been in operations for at least 2 years should have a complete record of financial statements and have its own tax ID number. Make sure that your tax ID number, EIN (employer ID number), and licenses are all listed in the same exact legal company name.

Establish your business savings account. Having your own business bank account is a solid proof that your business is financially stable. A balance of at least $10,000 for the past three months is considered as favorable and stable.

Establish at least 5 trade references. Build up a good business-to-business relationship with your suppliers or business partners so you can use them as references for establishing your business credit.

Register your business with a business credit bureau. Before you can start building your company’s credit history, you need to register your company with a business credit bureau like Dun & Bradstreet or Experian. D & B is a leading business credit reporting agency in the US.

Get a business credit card. After registering your company with a credit bureau, applying for a business credit card is a great way to build up your business credit. As you use your small business credit card with your expenses, you are also building up a solid credit history. Of course, maintaining an excellent credit history depends on how well you handle your credit card account. If you make it a point to stay within your credit limit and if you’re always on time with your payments, you are building a positive reputation for your business.



Credit Cards Resources

* Instant Approval Credit Cards
* Reward Credit Cards
* Free Credit Report

5 Important Things About Business Credit Cards

Some business owners think that getting a business credit card is unnecessary and choose to stick with their personal credit cards as a means of financing their business needs. But is there really an advantage in using a business credit card? Below are five important things a business owner must know about business credit cards.

1. Separate your personal and business finances.
At the start, one may feel that it’s okay to combine both personal and business charges using personal credit cards. But as you incur more business expenses in your personal account, you’ll see that combining the two isn’t such a good idea.

First, it makes accounting tasks more confusing and second, it makes management of your personal and business funding a lot more difficult. On the contrary, using a business credit card enables you to separate your personal account from your business account which is a great ease as your business starts to grow.

2. Business credit cards help build your business credit.
Every business owner must establish his own business credit history as early as possible. A business credit card lets you do just that. Keeping your business credit in good shape is a good preparation when the time comes that you’ll need additional help in financing or expanding your business.

3. Take advantage of special privileges.
Some privileges provided by business credit card companies are only limited to business credit card holders. These privileges include discounts, special rates, gifts, insurance, additional credit cards for employees, business reward programs and other perks that can boost your business.

In fact, credit cards with reward programs allow its holders to earn more points more quickly than personal credit card holders. This is because business expenditures are expectedly much higher than personal expenses. When you own a business, you’ll be spending the same amount of money each month whether you get a business credit card or not. So why let this opportunity pass when you can spend and earn rewards for your business expenses at the same time? Choose the best reward program that works best for your type of business. For instance, you may choose to get a credit card for business with a Cash Back Program, Frequent Traveler Rewards, Gas Rewards Program, etc.

4. Better rates.
Some people have the false notion that business credit cards always come with high interest. On the contrary, you can find business credit card deals today that are even lower than what personal credit cards offer. Don’t forget that competition between credit card companies enables consumers to choose the best deals.

5. Boost your personal credit history at the same time.
Since you haven’t yet established a business credit, when you apply for a business credit card, the bank would be granting you approval based on your personal credit history. This means, if you can keep up a clean credit in both your personal and business credit card accounts, it will be a great boost in your overall credit status.

More of Business Credit Card Articles