New business owners face the challenge of building a corporate credit history. In the meantime, they will need to bank on their personal credit history when applying for loans or business credit cards. In this article, let us talk about how you can increase your chances of getting approved for a business credit card even without a business credit history.
Build a Strong Personal Credit
When you submit your business credit card application, issuers will be checking your personal credit report to decide whether to give you an approval or not. Needless to say, having a good or excellent credit history will surely win the approval of your credit card issuer. If you have bad credit, the credit card company may not be as lenient in approving your application.
Before applying for your chosen business credit card, order a copy of your credit report from the three major credit reporting agencies – Experian, Equifax, TransUnion. Check if there are errors in your report which can pull down your score. If there, you can send a dispute letter to the bureau that issued your report to have the errors corrected within 30 days.
But what if you suffer from bad credit? Is there a way to improve your credit history? You may need at least six months to a year to improve your credit score. If you can afford to wait that long before applying for a business credit card, then all your efforts will surely pay off.
Why a Good Personal Credit Is Important
Search the market and you’ll see that the best offers are given exclusively for business owners with good or excellent credit. Obviously, you will be in much better position to get a business credit card if you can show an impressive credit rating. Small business credit cards with reward programs in particular are very strict about their credit requirements.
However, if you presently have bad credit history and you really need to get a business credit card, then a secured credit card for business is your best option. Use a secured business credit card to build up your poor credit. Take note that your credit line will be limited because of your credit status. You will be required to submit a cash deposit in your account and the value of your deposit will usually determine the amount of your credit limit.
Make sure that your chosen business credit card will report your payments to the business credit trackers like Dun & Bradstreet. Pay your bills on time, stay within your credit line, and smartly use your business credit card to meet your expenses.
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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 |
