Some of the best credit cards for business start ups include Chase Ink Cash Business Card, Capital One Spark, and the Simply Cash Business Card from American Express. Each of these credit cards has special offers created just for businesses.
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The Chase Ink Cash Business Card has tremendous features for start up businesses to take advantage of, including a zero introductory rate for six months and $250 cash back. You can also qualify to receive cash back up to 2% for the first $25,000 you spend each year on gas for transportation and dining out.
The Capital One Spark credit card has a variable APR or Annual Percentage Rate of 14.90% to 19.90% with zero annual fees for the first year and excellent balance transfer options. You can earn up to 2% cash back every day on every purchase and receive a $100 cash bonus.
The SimplyCash Business credit card has no annual fee, something you expect from American Express. It also allows up to 5% cash back on any type of wireless service as well as your purchases for office supplies. You get 3% cash back on gas purchases and 1% for all others. You can also qualify to receive anywhere from 3% to an incredible 1% off when you use Federal Express or Hertz.
How can I determine what type of credit card my business qualifies for?
You can determine the type of credit card your business qualifies for by looking into your personal credit history.
After all, a business does not have credit, but the owner does. This means as an entrepreneur, you must have your most recent credit history available.
Your credit history will determine the type of credit worthiness your business will have.
Thanks to the Fair Credit Reporting Act, you can log onto the official government site Annual Credit Report.com, select your state and after completing a simple form, you can receive your credit report free every 12 months. This is the fastest way to determine what kind of credit card your business will qualify for.
If your credit history has negative items listed, like unpaid balances, you will need to work with the vendors and work out a payment plan. You need to eliminate as many accounts that carry high balances by paying them down. Once you have satisfied your debts, ask them to update their data on your credit report.
In addition to cleaning up your debt, you should avoid closing any accounts before you submit your application for a business credit card. If you close credit card accounts that have a long history because you don’t use them often, you can actually damage your credit score because lenders look for length. Your oldest accounts may be the reason for your positive rating.
How can I be sure that the credit card I apply for will work for my business?
You can be sure that the credit card you apply for is the best for your business by reviewing the extra benefits that are included. For example, if you are starting a courier service, you may require a credit card that pays big rewards when you use it at a gas station.
A business that requires purchasing large quantities of office supplies may require a business credit card with advantages such as extra discounts if you shop at certain stores or online. The credit card you select is a personal decision that should be carefully considered.
Never choose a business credit card based on something like a zero introductory APR only because they are usually temporary and variable. Instead, look for a low fixed interest credit card.
If you do choose card with a credit card introductory APR rate, be sure that other options are included, like no annual fees or cash back features.
Are there other ways to secure capital for a start up business?
There are other ways to secure capital for a start up business, like loans. Most startups prefer to use credit cards because they offer benefits that loans cannot, like bonus points and discounts on supplies. However, if you are looking for a way to expand without credit cards, you can apply for a business loan with the financial institution of your choice.
If you are not offered a loan with a reasonable interest rate or are denied, you can certainly check with the Small Business Administration for information. This government agency was designed for small businesses. They provide you with all kinds of useful information and guide you along the process.
The best way to determine if you are eligible for a loan with the SBA is to review the checklist located on their website and proceed from there. Before you get started, make sure you have some common documents readily available. They include personal financial statements and your license or certificate of doing business.
Starting a business can be very challenging, especially considering how many can fail within the first few years. Making sure you have the correct financing is essential to the success of your business. Regardless whether you choose the best small business credit cards or small business loans, you must remember that your company depends on your management skills. Make smart decisions and you will reap the rewards.
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