subject: How To Qualify For A Business Credit Card [print this page] If you own a business, its always a smart move to get a business credit card. Why, you may ask? While some business owners may hesitate to get a business credit card the advantages of using one surely outweighs the risks. Are you afraid to get stuck in bad credit? Through preparation and responsible management of your business credit card account, you can reduce or even eliminate the risk of bad credit.
What are Business Credit Cards?
Business credit cards are especially designed for business owners. These credit cards are equipped with functions and features that make the task of managing business finances easier to handle. You can even find credit cards for business with rewards programs which can enable a business credit cardholder to save significantly from business purchases.
Who are qualified to apply for a business credit card? As long as you own a business, then you are definitely eligible to apply for business credit card. Nevertheless, the criteria of getting approved may vary depending on the issuer of the business credit card.
How to Apply for Business Credit Cards
So how do you begin the process of acquiring a credit card for business? Application for small business credit cards can be made online. You can simply go to the credit card companys website, fill out the application, and submit the form online. Within a few minutes or within the same day, you can get a response from the business credit card issuer. Indeed, the application process is much similar when you want to apply for a personal credit card.
However, its important to carefully evaluate the Terms and Conditions of your chosen business credit card issuer. Aside from the interest rate, you should make sure that you are aware of all fees as well as the provisions of your business credit card. Will the services or features available be beneficial for your business? Since the needs of a business depend from one type of business to another, you should look for a credit card that complements the demands of your own business.
Upon reading the Agreement, you should also be aware of your personal liability as the business owner. That means you will be personally accountable to pay for the debts that will be incurred using your business credit card. Even though the expenses have been made on behalf of your company, you the owner of the business is personally accountable for the repayment of those charges.
Some business credit cards are only offered for businesses which have already established business credit history. If you own a start-up business or have yet to establish your business credit history, a secured business credit card is a good option for you. Approval for a secured business credit card is not based upon credit history as long as you can submit the required cash deposit as security for your debts.
Indeed, the process of applying for a business credit card is simple. Nevertheless, business owners must take their time in doing research and comparison before making a choice.
