Business credit cards are a useful tool for saving thousands a year. You can get more out of your business expenses by using a credit card with rewards such as hotel stays, cash back and valuable discounts. Which business credit card is easiest to get?
How business credit cards work
Business credit cards are simply credit cards intended for business and not personal use. While business credit cards work almost exactly like personal credit cards, they are unique in several ways.
One of the main differences to keep in mind is that many credit card issuers for small businesses report their lending activities to both consumer and commercial credit bureaus. In addition, unlike consumer cards, business credit cards are not protected under the 2009 Credit Card Act.
How to apply for a business credit card
You can assume that you must be a business owner with many employees and an office or store to apply for a business credit card, but this is simply not true. Anyone who owns a side company – such as a babysitter, yard care, blogging or consulting – who earns money (or even doesn’t have any income yet) could potentially qualify for a business card.
Increased chances of approval
Running a well-developed business, of course, helps increase opportunities, but you can qualify by providing only the above information. Here are some other things you can do to increase your chances of qualifying:
- Pay off debt
Pay off your existing card debt about 30 days before applying for a new card.
- List all your income
When submitting your application, list your pre-tax income and include income such as retirement income, alimony and rent.
- First, build your personal credit score
A good personal credit history is a major factor in getting your credit card business approved. If your credit rating is not good, you must work on building your personal credit before submitting your application.
- Be honest in your application
Do not create false revenue for your company, hoping to push the application. If your bank checks your application twice and finds that it is not accurate, you may be rejected.
- Start a relationship with a bank
If you already have a relationship with a bank, you have a better chance of accepting one of their business cards. Set up a checking account for your company at the bank and then try to apply for one of their cards.
In general, the easiest cards to get with a fair credit are boneless starting cards; those without annual fees can be great for building a loan, however if you can pay the annual fee you can also find a reward card for your purchase. Make sure the prizes are worth the fee before submitting your application.
- Capital One® Platinum credit card
- Capital One® QuicksilverOne® Cash Rewards credit card
- Credit One Bank® Platinum Visa®