When you really need to produce a major purchase, like a machine, new furniture, or an office expansion, financing by way of a business credit card will be the only way to get the cash you'll need fast. But not only any old business credit card will do; you may need one that could help your company build business credit. Here are the steps from Business Cowboyto building business credit when applying for a business credit card.
Know Your Options
No one card is ideal for every company. Your very best bet is to first explore all of your options and then apply for the card that best meets your needs. You might want a card with a low introductory rate, or rewards for travel or purchases.
Or you may well be buying special financing option, like a distinct credit, or a card that will help your company establish credit. You can also wish to ensure that the business enterprise charge card you choose doesn't have an annual fee. Though some cards do charge a fee, many don't, and these cards are your very best bet when trying to build business credit.
Check Your Credit Score
When you apply for a small business charge card, make certain you've checked your credit score. Your credit score is utilized by lenders to determine your creditworthiness, and it'll play a large role in if you're approved for a company credit card.
The higher your credit score, the greater chance you've to be approved for a card—and getting the best terms and rates. If your credit score is low, or if you've got little if any credit history, you could experience difficulty getting approved for a card.
Develop A Repayment Plan
You should always pay your bills promptly, and you should always try to pay your balances in full. But, you must produce a repayment plan as it pertains to building business credit. Most card companies report your payment to the credit bureau after 5 monthly payments, however many report sooner.
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