Secured credit cards for business are quite popular in the market these days. Unlike regular credit cards for business, these accounts require the submission of cash deposit. The fund will be used in case the cardholder defaults payments.
Why Get A Secured Business Credit Card?
Many issuers of business credit cards require good or excellent credit rating. If you have bad credit or a low score, you might not be able to qualify for a standard business credit card. But that doesn’t mean you can never acquire a credit card for business.
A secured business credit card is a good option not only to have access to a credit line but also to rebuild bad credit. In fact, this type of credit card for small business is especially designed for those with bad credit or no credit history.
The important thing is to make sure that the issuer will report your payments to a major business credit tracker like D&B. Once approved, you can begin building a solid business credit through regular use of your business credit cards and prompt submission of payments.
Secured Business Credit Cards and Interest Rates
Do secured business credit cards carry very high rates? Understandably, a secured credit card may have a slightly higher APR than a non-secured card. However, if you do your search, you should be able to find a small business credit card with a reasonable rate.
The best way to save money is to pay off your balances during the grace period. Some credit cards allow 21 days up to 30 days of grace period. Take advantage of this time to pay your bills without paying the additional interest rate.
Secured Business Credit Card Fees
What about the fees? A secured credit card will usually require an annual fee to keep the account active. Needless to say, you’ll want to look for a card that carries a reasonable yearly fee. Other fees may include late penalty charge, over the limit charge, and other finance charges.
Spending on additional costs can be avoided by getting to know the rules of your credit card and avoiding the penalties. More importantly, it minimizes the risk of bad credit so you can build up a solid business credit history.
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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 |
