What You Need to Know About Your Business Credit Card Application

The biggest task for many of today’s next entrepreneurs is to secure a company credit card. Oftentimes, business owners are forced to use their personal charge cards for business use. However, it is possible to secure a company card through the exact same financial institutions that provide you with your personal cards. In order to acquire such a card, a business must be credible.

Once a company has established credibility, it should be your goal to make it credit worthy. This can be done by reporting transactions made on loan accounts to credit bureaus specializing in business credit. This will aid in the creation of a credit report for the business and will thus help to build your business’ credit worthiness. The business credit report bureaus to be targeted are Experian and Equifax, to name just two. You will only be able to acquire a business credit card without personal guarantee if you have established your business’ credibility with a number of these credit report bureaus.

For those who wish to make a company charge card application sooner rather than later, it must be noted that if the application is declined, you have a right to reapply six months following the initial application. If a company completes an application three or more times within a period of ninety days, the applications will not be considered.

Only a small number of business lenders report your business’ credit worthiness to the aforementioned credit bureaus. If they do not report your credit worthiness on a regular basis, this will impede your attempt to gain credit worthiness. For this reason, it is essential to choose a loan provider that will report your credit status to these credit bureaus on a regular basis.

When you are invited by a financial institution to discuss your business card application, it is essential to know your industry inside and out. You should draw up an irrefutable business plan and provide them with your business’ up-to-date financial accounts, contracts and other legal paperwork. Ensure that you are specific with regards to the areas in which the finances will be used and ensure that you explain the ways in which the money put into this area will aid the generation of greater income. This will aid in securing your application for a card.

When it comes to choosing the best business credit card provider, start with your personal bank; they should offer credit to businesses. If you already hold a personal account with the credit card provider, you are more likely to secure a charge card for your business venture.