If you own or are starting up a business, you may want to consider applying for a business credit card. Business credit cards can help your business grow and can make sure you are prepared to handle any financial emergencies fast. If you’ve never applied for a business credit card before, you may be wondering how to apply for business credit card benefits. The fact is, applying for a business credit card is extremely easy, and you don’t need any special knowledge to understand how to apply for a business credit card.
How to Apply for a Business Credit Card
You might think that your business needs to be a certain size, or that you need to be an established business in order to apply for a business credit card. In fact, nothing could be further from the truth. You can apply for and get a business credit card even if you don’t have a business at all. Simply list yourself as the sole proprietor of whatever available company name is to your liking and fill out a business credit card application. The credit card company can use your personal credit information to determine whether or not they want to extend you credit. In fact, even if you do have a business credit profile, the credit card company is likely to check out your personal finances as well as your business financials.
Procedure on How to Apply for a Business Credit Card
The first thing you’ll want to do is do some research on the different business credit cards and what they offer. Different credit card companies may offer generous sign up bonuses for new businesses and you’ll want to take advantage of this. Of course you should also be aware that some credit card companies offer generous introductory rates that balloon into less favorable rates down the road, a tactic you’ll want to avoid as a growing business. You should also get a copy of your personal and business credit reports and scores, just to see where you stand and how you appear to perspective lenders. The better your credit rating, the more likely you are to get high credit limits and favorable interest rates. Then it’s simply a matter of submitting the application and waiting for approval.
What to Do with Your Business Credit Card
You may wish to get multiple cards to give to your employees, so that they can make purchases and perform necessary transactions when you are not available. Be sure to keep careful records of who is spending what on the company credit card, as a few missed payments can damage your business credit rating and make future borrowing more difficult. You shouldn’t need business credit cards from more than one or two credit card companies. If you find that you do, you may want to consider scaling back unless there are special circumstances necessitating more credit cards. If scaling back is not an option, consider applying for a higher credit limit or a line of credit rather than having too many credit cards on your business account.