Many new entrepreneurs consider applying for a business credit card. The question is, can you qualify for a business credit card if you don’t have credit history? The answer is yes. Issuers of business credit cards usually consider the entrepreneur’s FICO score in the absence of a Paydex score.
In fact, you can use your business credit card to build your business credit. In this article, we’ll discuss tips on how you can build a credit history for your business.
Register your business with Dun & Bradstreet. Before even applying for a credit card for business, be sure to register your company with D&B. Remember that business credit trackers work independently from consumer credit bureaus. If you don’t sign up with a business credit bureau, you will not be building business credit at all.
Build up your personal credit. Since you’re just starting to build business credit, most of your transactions would depend on your personal credit. Therefore, keeping your personal credit history in excellent standing would certainly work to your advantage. For instance, you can qualify for the best credit card deals in the market. You can also enjoy better rates from lenders if you have a high FICO score.
Apply for a business credit card from your bank. If you’re going to get a business credit card, it’s advisable to consider getting one from your personal bank especially if you’ve been a long time client. Having your own savings account from the same bank will certainly give them more confidence in providing you with a business credit card.
Find a low APR secured business credit card. A secured credit card for business is also an option for people who don’t have a credit history or who may have poor credit. If your FICO score is not that impressive, you may not be able to qualify for business credit cards that require good credit. With a secured credit card, you can be assured of an approval regardless of whether you have a credit history or not. However, be prepared to submit a cash deposit to your account.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2010 |
