Business credit cards are often the first step to building business credit for many small business owners.
Business credit cards can help you handle cash flow fluctuations, providing alternative ways to pay money you owe and utilize your cash for other priorities. You will, of course, need to manage your cards carefully so you aren’t simply pushing today’s problems off until tomorrow.
How do you get Business Credit Cards?
First, check your personal credit. Before you start the process of applying for a business credit card, you want to know your personal credit worthiness.
Business credit card issuers may also consider other factors about both you and your business, such as your business revenue, business expenses and net income or losses. They will also want to know how long you have been in business and your most recent bank balances.
Next, you will want to research business credit card options to find one that fits your needs. There are many different types of business cards, so make sure to keep your business needs in mind.
It’s important to consider the type of business you have and how you can maximize your rewards based on your business-spending requirements.
You may want a business credit card with cash back for general purchases or a business card with travel rewards. You’ll also want to look for zero interest introductory rates and other features. Compare each card side-by-side so that you can make the best decision for your business.
Applying for Business Credit Cards
It’s easy to apply online for business credit cards. You can get a decision quickly and receive your cards in just a few weeks.
Most applications ask for your personal and business information, including your legal business name, business address, business phone number, tax identification number, type of business, years in business, annual business revenue and monthly business expenses.
In addition, many business credit card applications also ask for your personal income, social security number and date of birth to prove your credit worthiness based on your personal credit history.
Use your Credit Wisely
Once you receive your business card, activate it and start using it wisely. Carefully review the terms of any related rewards program so you can reap the maximum benefits of your business card.
Avoid mixing personal and business-related expenses on your business credit card. Doing so will help you when it’s time to sort out your accounting information during tax season.
Once you’ve received your card, use it responsibly to further grow your business and your business credit.
