Business Credit Cards Application Process

Business Credit Cards Application Process

Introduction -

Business credit cards are not easy to get unless you have decent credit history to support as back up. People with good credit score can get business credit cards easily as the approval method is not a tedious process.  The process of application to get a business card is quite similar to the personal credit cards however for personal credit card only one credit report will be done but for business credit, several reports are done.

Credit Scores -

The credit score around 600 to 649 for any small business is known to be a poor credit score and below 599 would be a bad score therefore the application for processing the business credit card would be denied and in this situation most of the banks insist on a settlement with a personal guarantor who can be responsible for the debts that you owe.

After the year 2008 the companies issuing credit cards have made the standards of credit more constructive for personal and business credit cards due to the occurrence of credit crunch.  The business owners should ensure to separate their personal credit from business credit at the beginning of the business undertaking otherwise it might be a problem in the future.

Business Credit Cards Online Application -

The business men can apply business credit cards online however it requires lot of research to finalise which one to go for as there are lot of attractive offers being provided by credit card companies.  These offers are usually there always due to high competition among different companies.

Business men apply for business credit cards online as the credit limit provided is higher and this becomes an advantage for the business people who make lot of business transactions. The interest rates charged on your card is higher compared to other cards however due to the high credit limit it gives you the opportunity to spend lot of money.

How To Apply For Business Credit Card -

Ø  For all the business owners it is important to acquire business credit cards as business involves expenses on various good and services and you should always bear in mind to keep your business expenses separate from personal expenses, this is possible by obtaining business credit cards.

Ø  Big and reputed business owners can qualify easily to get the business credit cards even without credit card companies examining their personal credit history however for small business owners it is a requirement to maintain good personal credit history for the business credit cards approval process to go smoothly.

Ø  Obtaining a secure business credit card is one way which helps the business owners whose credit scores are bad. If you are opting for this, you should have enough deposit in your saving account as your card is backed by the amount in your account.  The credit limit given by the company depends on the amount of deposit in your account.

Ø  Follow the legal process before setting up the business entity this helps in the approval of the business card.  Ensure to get your tax identification number also called as EIN and it has nine digits, this is required by law to start a business venture and opening an account in the bank. This helps to create your business profile and is useful during the application of business credit card.

Ø  Bank account which is set up by the business should be at least couple of years old to be eligible for applying a loan.  The most vital factor is that your bank balance will create an impression for the credit companies whether you will be able to clear the business debt or not, keeping in mind the type of business.

Ø  Get your business listed with credit ranking companies also called as credit bureaus. Dun & Bradstreet is one of the main credit ranking reporting agencies and operates its own credit ranking rating. Apply for DUNS number after establishing your business venture. The credit card companies and other lending companies will look at your number provided by DUNS to examine your business credit during the application process.

Ø  Ensure that your payments are being reported by your vendors or credit card companies to the reporting agencies on a timely basis.  Some of the reputed and well known agencies are D&B, Equifax and Experian.  The reporting of your credit should happen to any one of these companies to build up a good credit rating for your business entity.

Ø  Get a professional website designed for your business as this helps to recognise your business on all the search engines and gives a presence to your business. This can act like a tool to provide important information about your business. The business website should look simple and professional, this will be appropriate for credit card companies to read through your business information or details.

Ø  Sustain good personal credit rating as the credit cards companies will always look examine the business owner's personal credit. This practise was previously depending on credit card companies however now this has become a regular practise for all the lending or credit companies to examine the personal credit rating.

Ø  Maintaining good credit rating all through is necessary for your business credit card approval process to go smoothly without any havoc. This can be possible by paying all your invoices on time before the set due date. By maintaining and sustaining good credit score you will be able to create good paydex score.

Options and Alternatives during No Credits -

The reputed companies which provides shopping or gas cards and which reported to credit bureaus would be a good option and acts as an alternative. This is quite similar to credit cards however you need to purchase the items from their shops or stores and repay it within the given period of time.

The approval process is easy compared to other cards like master cards or visa cards.  Ensure you pay your credits on time as this helps in maintain good credit rating.  Use debit cards for maintaining good credit rating as debit card limits to the amount available in the bank account.  Your debit history also needs to be good as similar to your credit history.


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