Most new small business owners cannot wait until they are able to receive a credit card bearing their company name. However, business credit cards are not necessary for all business owners. New business owners should not apply for a business credit card if they:
- Do not have any profits
- Have not clearly identified their target audience
- Do not have a solid business plan
Business credit cards can come with rewards, low introductory interest rates and even allow cardholders to transfer their balances. With that said, business credit card issuers review business credit card applicants in a similar fashion to personal credit card applicants. If you do not appear to be stable or have defaulted on a business credit cardin recent years, you will probably not be able get a new line of credit.
How do you choose a new small business credit card?
Small business owners have similar needs to the owners of major corporations, including business credit cards. You should visit MyMoney to get an idea of what business credit card features would best help your business to become more viable. If you are a small business owner that travels often, a business credit card that gives you discounts on airline tickets or hotel rooms might work best for you. Small business owners that make many small purchases may benefit from a business credit card that has a rewards program.
Above all else, you should look for a business credit card that has the lowest interest rates. Even business credit cards that have a low introductory APR can cause you financial hassles if you do not plan accordingly. Always read over the terms and conditions before applying for a new business credit card or requesting a credit limit increase. Credit card companies have the option of changing the terms of credit cards, but the Credit Card Act of 2009 gives consumers the option of opting out when they do not agree with the changes.
Can you carry a balance on a new small business credit card?
Since there are many different business credit cards for new small business owners to choose from, it is not possible to determine if they all allow cardholders to carry a balance. Ideally, you should be able to pay down your credit card debts each month, or at least pay off a considerable amount. Each month that you continue to carry a balance will cause the total amount of money that you pay in interest to go up. Because small business owners can only remain in business by minimizing their expenses, it is not recommended that they carry a balance even if their credit card company allows it.
Only credit card companies such as American Express do not allow business owners to carry a balance on their credit cards. If you have questions about the credit limit or terms of your business credit card, you should speak to a customer service representative as soon as possible. Each credit card cycle lasts a minimum of 25 days; however, interest can start accumulating as soon as you make a purchase.
Is it difficult for new small business owners to qualify for business credit cards?
Just as it can be more difficult for consumers with no credit to qualify for a credit card, new small business owners may not be able to qualify for their preferred business credit card. MSN has tips for credit card applicants, including those that want to be extended credit for their businesses. Some factors that business credit card issuers use to weigh credit card applicants cannot be controlled, but you can still do a few things to give yourself an advantage.
If you know that you have a minimal credit history, apply for a new business credit card with an established co-applicant. Make sure that you list all of your sources of income so that the total amount of money that you business takes in is as high as possible. It is far more difficult for new small business owners to receive any type of credit, so you may want to get a secured business credit card before applying for an unsecured business credit card. If your business continues to do well, you may have business credit cards offers sent to you within a year or so.
Go to the credit card chaser website to see more business credit card options!
- Applied Bank Small Business Micro Loan Card
- Chase “Ink” Small Business Credit Card is First Visa/Mastercard Charge Card
- First Tennessee Bank National Association Visa Small Business Credit Card
- Where can I find good credit cards for new small businesses?
- Farm Bureau Bank FSB Premier Business Visa Credit Card
- Where do I find business credit cards for new businesses?
- Small Business Credit Card Companies