No matter what your business size is, getting a business credit card is a good idea. There are numerous business credit cards; you can create a financial history of your business, alleviate cash flow issues, delegate spending to your employees, keeps your personal and business finances separate, and much more. Apart from that, with the right business card, you can earn rewards—like redeemable points, cashback, and even free hotel stays—that will help you run your business seamlessly. If you are looking to get a business credit card, then read our step-by-step guide on how to get a business credit card.
How to Get a Business Credit Card
Let’s have a look at the steps required to get you a business card.
Step 1. You have to determine which business credit card is right for you.
There are several options available for business credit cards in the market; thus, it is advisable to go through different options to decide which card is best for your business before applying for a credit card for your business. Now, the question is how to find which credit card is right for your business? The right credit card for your business will be one that you think you’ll qualify for, which has the features and rewards you’re looking for and helps you accomplish your financial goals.
Step 2. Check your credit score.
The next step in this guide is to check your credit score to see where your credit score stands. The credit score is one of the most critical factors while applying for this card. Thus, it is recommended to check your credit score to determine whether you’re likely to qualify for the particular card you’re interested in or not, before filling out the application form. Every credit card application demands a minimum credit score; however, to avoid damage to your credit score (and hopefully rejection), you have to apply for cards only in which you fall under their eligibility criteria. Business credit card options are available for all ranges of credit score—and if your credit score is low or you have a brand-new business with no credit history—you still have options.
If you have bad credit, you can go for a secured credit card that demands cash collateral. Furthermore, if you have a short or limited credit history, you can consider cards like the Capital One Spark Classic, which only needs a minimum credit score of 580.
Step 3. Gather the necessary card requirements and fill out an application.
This is the third step in our guide on how to get a business credit card. Once you have decided which credit card you are looking for and even eligible for it. It becomes pretty simple to apply for it. Now, it’s time to fill out the application online and receive an approval within seconds. As we have mentioned earlier, you have to make sure that you meet the eligibility criteria. The reason behind pinpointing this concern here again because it is important to fill out all the details accurately; for example, lenders can not check your credit score if there are clerical or technical errors on your credit card application.
Therefore, you will require to pay close attention to details—like that you’re providing your business address, not your address (unless, of course, you work from home) and that your revenue calculation is right. Once you have fulfilled all of the credit card requirements and cross-checked your information, you can submit your application.
Step 4. Wait for approval of your application
Once you submit your credit card application, it will not take too long to tell you if it is approved or not. As we have mentioned, most online applications will let you almost instantly if your application has been approved for the card. Once it gets approved, you should also notice when you can expect your business credit card in the mail. In case of rejection of your credit card application, you’ll have to review the reason for rejection provided by the issuer. If you find that there is something that negatively impacts your credit score, you’ll have to work on it to rectify it to improve your chances for approval in the future.
Step 5. Activate your credit card and use it responsibly.
Lastly, once you get your business credit card, you have to activate it as soon as possible. But make sure that you use it responsibly to handle your business expenses and improve your business credit. The credit limit on your card will usually depend on how strong your credit score is and what your (or your business’s) income is. Irrespective of your credit limit, you’ll have to be sure that you’re maintaining your spending properly—spending wisely and paying off your balance on time.
Rounding It all up
After reading this step-by-step guide, you might have an idea of getting a business credit card. We hope this guide helps you understand the complete process and the basic requirements you need to keep in mind before and after applying for it.
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Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.
