If you are looking for a business credit card, and particularly if you have had difficulty getting your first business credit card, the following tips can help you get a great business credit card that you can use to grow your business and take care of your business expenses when cash flow is tight.
Business credit cards, as you may know, are just like personal credit cards, but issued to your business, not to you. You don’t have personal liability and you don’t have to use your business credit.
Here on some tips:
1. Make sure that the “business” credit card you are considering reports your credit to a business credit agency, such as Experian Business, Equifax Business and Dun & Bradstreet. Cards that report to consumer credit agencies are not business credit cards, and will neither boost your business credit profile nor protect your personal credit profile. You need a real business credit card.
2. Check the rates and shop around. If your business credit is good, regardless of your personal credit, you should be able to get good terms, including a good interest rate and rewards, on a business credit card.
3. Business credit cards usually have very high credit limits in comparison to personal credit cards. You may see credit limits of over $50,000. If the first bank you apply to offers a low credit limit, shop around for a better limit, or ask them how you can get that increased.
4. When you do get a business credit card, make sure that you use it for business purposes ONLY. Do not mix personal and business purchases on your business credit card; this is one reason you have a business credit card.
5. Look for a business credit card that itemizes yours statements to show exactly where your money went. Your accountant will appreciate this when it comes time to itemize your expenses at tax time.
Getting a business credit card is one of the best things you can do to grow and expand your business. Knowing exactly what to look for and how to find a credit card for your business makes the process much easier. Keep in mind that most business credit cards have lower rates and higher credit limits than personal cards, so you should be able to find a good credit card for your business.
If you have difficulty finding a favorable rate and a high enough credit limit, keep shopping around. If you’re unable to get exactly the card you want, spend some time building your business credit profile and try again; you will probably find much better terms. Like anything you do in business, it can take some time and effort to build your business credit profile, but it’s well worth it.
Do not underestimate the importance of business credit to your business. You absolutely need credit that is not tied to your personal credit and that will reflect your business’s integrity. This is one of the most important things you can do for your business.