For many small-business owners, a company charge card will help streamline finances while building business credit. But when you have little or no business credit, how do you get a company charge card in the first position?
Whether you do freelancing or running your start-up, you’ve possibly wondered about getting a company demand card, especially when you’re just starting your company and don’t have any business credit yet.
Although there are certainly a few differences between business and personal credit cards, the applying method is similar. Here’s what you have to do if you’re looking to get a company credit card.
Check your credit
Before you begin the method of applying for a company charge card, check both your own personal and business credit. Both can be viewed once you use them.
Lenders could also consider other factors about both you and your company, such as…
- Business revenue
- Business expenses
- Personal income
If you don’t have organization credit, you may want to work well with developing it before you may be permitted for the best organization credit cards. Among the ways to achieve that has been a secured organization credit card.
Research business credit card options to locate one that fits your requirements
There are several various kinds of business cards, so be sure to keep your company’s needs in mind. It’s important to consider the sort of business you’ve and ways to maximize your rewards based on your business-spending requirements.
For instance, a freelance graphic designer with monthly expenses for design software might consider a company charge card with cashback for general purchases. But a company owner who travels frequently might consider a company card with travel rewards instead.
If you’re focusing on building your company credit, know that not totally all business credit cards report to business credit-reporting agencies. If you obtain a card from an issuer that doesn’t, you won’t build your company credit. When you apply, ask the charge card company when it reports to a company credit-reporting agency.
Compare each card side-by-side so that you possibly can make the best decision and minimize the number of cards you apply for — way too many hard inquiries will impact your credit scores.
Apply for a business credit card
Once you’ve found the right business charge card for you, fill in an application.
Most charge card companies will accept a credit card application online, where you will end up given a decision. If you do not receive an instantaneous decision, your application will be reviewed, and a decision will be provided for you.
The application form will more than likely request your own personal and business information, including …
- Legal business name
- Business address
- Form of business
- Business phone number
- Tax identification number
- Annual business revenue
- Years running a business
- Monthly business expenses
- Personal income
- Social Security number
- Date of birth
Await your business credit card in the mail and utilize it wisely
If you’ve been approved, all you want to do is wait for your card to arrive in the mail. Most charge card companies would mail your card within seven to 14 business days if you applied online. Once you obtain your company card, stimulate it and start utilizing it wisely.
Cautiously evaluate the phrases of any connected rewards plan to help you reap the utmost benefits of your business card.
Prevent mixing particular and business-related expenses in your company credit card. Doing so can help you when it’s time to sort out your accounting information during tax season.
If you are a self-employed freelancer or small-business owner, the best company charge card can aid you in constructing your organization credit if you employ it responsibly. If a company doesn’t have revenue yet or doesn’t have company credit, anticipate demonstrating your creditworthiness predicated by your personal credit history and income.
Once you’ve received your card, utilize it responsibly to help grow your company and your company credit.