subject: Secured Business Credit Cards: What You Should Know [print this page] When you are in business, establishing a credit history for your business is a must. Having a business credit history that is separate from your personal credit history opens will open more doors of opportunity for a growing business and makes business transactions so much easier. Obviously, with an excellent credit to back your company, you will also gain the trust of suppliers, investors and get quick approvals from lending companies.
For a newly started business, a Secured Business Credit Card is definitely a big help in establishing a credit history. To guide you, here are some basic pointers about the secured type of "plastic" card for businesses that you should know.
Are these type of plastic cards only for businesses with bad credit? Some people may hesitate on applying for a secured type of credit card intended for businesses because they think this will just create a negative image for their business. On the contrary, secured type of "plastic" cards are not meant for businesses with bad credit history alone. Secured business credit cards are especially created to help new businesses start up their credit history too.
So if you are applying for a secured business credit card, a lender will not instantly dismiss you as a high risk borrower. Lenders know that secured business credit cards are for new businesses too.
Will secured business credit cards affect your business reputation in a negative way? If you think that prospective clients or business partners may become skeptical if they found out that your business is using a secured type of card, you can actually keep this matter confidential. The word "secured" will not be printed in your credit card at all. No one will know other than you and your chosen credit card company that you are using a secured business credit card account.
Are secured business credit cards high rate cards? There are secured business credit cards in the market that may ask for higher interest rates than standard cards. Nevertheless, you can still find issuers offering reasonable rates and fees if you will just do an extensive research.
Secured Business Credit Cards Help build Your Business Credit History
The best thing about a secured business "plastic" card is that it enables any business to establish the company's credit history without restrictions. After building your business credit history, the business can apply or upgrade to an unsecured credit card to avail of more privileges such as lower interest rates, higher credit limit, etc.
For Corporations and Small Businesses Alike
Both a corporation and a small business can apply for a secured type of card. The difference is that small businesses can send in their applications at any time and will just have to wait for a response. On the other hand, applying for a corporate secured business credit card involves more complicated procedures.
The business owner must first meet with the issuers, present his business plan, before the application can be reviewed. In both cases, secured business credit cards are used as tools in managing and distributing the finances of the company more effectively.
