If you are a new business owner, you may be wondering if you can get a business credit card. Questions such as “Is it easy to acquire one?” or “Is it worth the hassle involved?” may come to mind.
The good news is that they are readily available to many new business owners. The application process is similar to that for personal credit cards. Whats more, there may be some nice benefits in having a business credit card such as higher credit limits and perhaps signup bonuses as well.
General Steps Involving in Acquiring a Business Credit Card
There are two major steps to take when thinking about procuring a business credit card. First, evaluate your business, and second, review your personal credit history. Let’s look at each:
Your Business. What counts as being a business as far as getting a business credit card goes? In a nutshell, it’s not that strict. You may have a formal business structure, but you don’t need one, at least with most card companies.
Your Credit History. Perhaps more important is the quality of your personal credit record. Having a stellar or excellent personal credit rating goes a long way when applying for a business credit card. Before you apply, obtain your own personal credit scores. You can get your score from firms such as Equifax. If your score isn’t quite up to snuff, work on building up good credit habits such as timely payment of all bills each month. Then reapply in a few months for a business card.
Options To Think About When Shopping for a Business Credit Card
Just like with personal credit cards, different providers offer different card perks. Some may help you accrue travel milage. Others may feature cash-back advantages. Here’s an interesting one: Some may offer new cardholders 0% introductory APR on new purchases. It pays to shop around for the best deal for your particular circumstance.