Small Business Credit Cards With No Credit
You have no credit, but you're looking to apply for a credit card with no credit. Can you get a credit card for your small business when you have no credit history? While it's going to be hard to get one, let me give you some options that you can use in order to get, "credit."
#1 Start with prepaid cards - If you have the patience, get a prepaid business credit card that's going to build your credit score. They are out there, but you're going to want to make sure that you can deposit cash on them. As long as you put $250+ or so on them, you can build your score. Allow a few months to a year to see a difference.
#2 Try P2P loans - These loans are new to the Internet world, but many can get loans through them. They work in a cool way. What's going to happen is that you're going to ask the community for a loan. People like you and I are going to supply you with the money. You will pay us back interest, so it's a win-win.
#3 Check with the SBA - You may be eligible for a SBA (small business administration) loan. Consult with your local office and see if you can qualify for anything. While many people can't get approved because of strict guidelines, the worst thing that they can say is "no."
How can I get a credit card though?
I know you're probably asking me to give you the answers, but I will give you an honest answer. Your chances are going to be slim. What you're going to want to do is head to your local bank. I would recommend that you head to a corporate based bank such as Bank or America. They banks have lesser guidelines, compared to your smaller banks / credit unions. If you can ask them about options, they should be able to give them to you.
If you decide to apply online, look at the application process. Many banks will tell you today on exactly what you're going to need in terms of credit scores, history, and more. If you don't reach a certain percentage / number, you probably won't be qualified. I guess you can always apply for it, but you may find that you're just going to be rejected.
In this economic climate, it is hard to find a card that works for you, but if you test out some options above, you may find something that works for you!
Important Tips For Business Credit Card Owners
If you are a business owner, applying for a business credit card is definitely recommended. What are the benefits of having business credit cards? How can credit cards improve your business? In this article, we'll discuss the advantages of small business credit cards and some pointers on how to choose the right one.
Business Credit Card Benefits
Indispensable for emergency expenses. Business credit cards are indispensable particularly when unexpected expenses arise. For instance, if you need to purchase supplies or stocks to meet a large customer order or if one of your machines break and needs to be repaired. Even if you don't have the cash on hand to address these expenses, you can simply charge them to your card and pay by month's end or on your next bill.
Build up your business credit. By using your card related expenses and paying back your balances on time, you can easily build up a solid credit history for your company. An excellent credit history would be an advantage when you apply for a loan for your future projects or plans. As your business grows, making your business credit strong and impressive will certainly make you a strong candidate for lenders who offer the best deals.
Track your expenses more easily. A card also helps in monitoring your expenses. You can use your monthly statements of account as reference to your accounting and bookkeeping tasks. Business credit card companies also send quarterly and yearly account summaries that are especially helpful when filing your business taxes. If you own a home based business, you can easily determine which expenses can be written off or exempted from your taxes.
Access to online banking. Cards today also offer the most convenient way to do banking- through the internet. This means, you can access your account at any time right from your computer. You can also make your purchases or make your payments online using your card. For a business owner with a very busy lifestyle, this option is indeed, invaluable.
Make the Right Credit Card Choice
How can you make the right choice of card? By researching and learning as much information as you can about your prospective card. First, determine what type of card matches the needs of your business.
Would you like a card that offers a reward program? Is your credit history good enough to qualify for an unsecured credit? Or do you need a secured credit to build your credit?
Card review websites are great tools to help you narrow down your choices. These review websites not only present a list of business credit cards that are available in the market, they also enumerate the strongest and weakest points of each card. After reducing your options to just two or three cards- take the time to read the complete Terms and Conditions of each card so you can compare them more efficiently.
Great Benefits From Business Credit Cards
Many business owners feel that staying away from business credit cards is the only way to go if they want to avoid overspending. However, many entrepreneurs are missing out on numerous rewards that small business credit cards bring.
Average rewards cards come with accompanying rewards programs, some offer one point per dollar spent on the card. The cardholders get their rewards in the form of cash backs or points that are redeemable for travel or travel. On the other hand, small business credit cards can offer a whole range of benefits that are otherwise not offered on regular rewards cards.
Reduce debt
There are many business card credit that offer cash back rewards. When getting a card, consider getting one that offer rewards in the form of a credit sent to your account. This way, you can actually reduce the amount of money you need to pay for your purchases.
Manage Employees' Expenditures
Business owners can issue business credit cards to employees who need to make purchases in behalf of the company. These cards usually come with customizable limits meaning, the business owner can limit the amount of purchases his employees are allowed to make using the card.
This feature will allow business owners to manage their finances effectively without keeping eyes on it. In addition to customizable limit, many business card credit offer quarterly statements with every items purchased are listed, and this makes it easy for business owners to know where their money is going and get a good idea how much money he is spending every month.
Travel Rewards
One of the most popular features of rewards cards are the travel benefits that come with it. Business owners can travel and enjoy certain benefits such as travel insurance coverage, lost baggage coverage, discounts and so much more. They can literally save thousands of dollars if they are to use these rewards every time they use their business cards.
Concierge Service
Why hire a personal assistant when you can have concierge service at your disposal 27/7? By calling the number on your card, you can make last minute arrangements to the most popular restaurants and bars, get help for directions, make travel arrangements or send presents to people you love.
Pros and Cons of a Small Business Credit Card
One of the major concerns of small businesses is cash flow and credit cards seem to be the ready answer to this problem. Try looking for one and you will be swamped by choices: both Visa and Mastercard offer four credit card choices for small businesses and credit card giant American Express has eight. There are also hundreds of partner banks to choose from.
Small businesses do not really need credit cards to operate smoothly, but these plastics can come in handy. With so many business credit cards to choose from, the decision really depends on one thing: actual need. Here, I examine why small business credit cards are a blessing from creditor heaven and why you probably will not need them.
A credit card should not be your only source of capital, but it can be a sensible means with which to purchase materials, goods and services during periods when cash is a little tight. And I really know a lot of small businesses go through some cash-flow squeeze.
Small business credit cards are also a practical means to make large purchases, provided your credit limit can accommodate the amount. They can also offer an effective financial transaction tracking system. Many credit cards are being offered with software that can record purchases and deals, even those made by your employees.
Another reason why you might want to use a small business credit card is that many creditors offer rewards for usage such as discounts, prizes and cash-back schemes on top of the usual flyer miles.
But your small business credit card will be signed by you and if ever you defaulted on your business credit card payments, the creditors or banks will not be coming after your business, they will be homing in on you. This is usually the case for small businesses just starting out, when the professional and personal finances of the owners are considered the same.
On that note, whatever record you have on your small business credit card will be included in your credit report. If you miss some payments in your business credit card, it might reflect badly on your personal credit history, making your finances look more unstable than it truly is.
For the first few years when your personal and professional finances are not yet treated as separate entities, your business credit card will not be enjoying the same protection for consumers that are provided with a personal credit card. An example, billing errors on your personal credit card may be disputed within a certain period so you cannot be labeled as a delinquent consumer. With your business credit card, that is not the case.
Also, personal credit card companies will assist you during instances when you purchase bad merchandise through credit. Many small business credit card companies will not.
Should you pack a plastic or not? If you are disciplined enough and willing to take on an added responsibility, then maybe small business credit cards are for you. Just be sure to choose and use them wisely because they can and will affect your credit record if you are not careful. Also, you should be able to pay off your balance as quickly as you can. This will score you a lot of points with your personal and professional creditors and it will also help you renegotiate your terms more convincingly later on.
Business and Corporate Credit Cards
Credit card companies have developed a variety of cards with businesses in mind with lines of credit starting at $50,000 or more. To help you understand the different options and to help you avoid the confusion of terms and details, we provide some helpful information.
Small Business credit cards
Credit cards for small businesses are offered to the general population through advertisements on the Internet or as pre-approved invitations you receive in the mail. These offers are more 'what you see is what you get.' Granted, you can shop around for the business card offer that best meets your needs but there is little customization offered. The owner's name is found on the front of the card.
The responsibility for paying the credit card debt for small business credit cards lies with the business owner. If the account is defaulted on, the negative results will impact the personal credit history of the owner.
Corporate credit Cards
On the other hand, corporate credit cards are not as readily available through the mass media. These cards are targeted to a specific group, organization, or corporation and can be highly customized. The reason for this increased flexibility comes down to revenue. With the potential of millions of dollars in transactions, corporate card holders are given much more say in how their accounts are set up.
Corporations generally have a greater need to structure their finances in a specialized way to help review, approve and keep track of expenditures. Reimbursement accounts are also vital to large corporations and can easily be tracked with a company card. Specialized software is designed for corporate credit card accounts that will interface with human resource departments. A corporate credit card will have the corporation name on the front and usually the name of the authorized user, which also helps in tracking individual spending.
Take the time to consider your options regardless of which business card fits your needs. Seek out lenders that offer the services and perks that work best for your business or corporation.