Facts about business credit cards that you should know

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cards for Business » Facts about business credit cards that you should know

Facts about business credit cards that you should know

Add to Favorites:

One of the most important necessities for a business is a credit card. The credit card will give a boost to your business since it will help you establish credibility and build the credit history for the business. Applying for this card is a very important decision that you will be making for your business. Hence, there are some facts that you need to be aware of before getting it. Though the benefits of these cards cannot be denied, there are a few limitations that you will need to know as well.

If you are applying a business credit card in the name of the most recently set up business, then, you are surely not going to have a business history to back you. You will have to stand guarantee to the credit card. if you want your application approved at the earliest, then, you should have a good credit score to your backing. The good part is that since the credit card issued for your business will carry its name on it, it will make your business appear credible and legitimate. But be prepared to have this card linked to your personal credit history if there is no business history to back you.

The other challenge that one faces with business credit cards is that they are riskier than the ones for regular personal use. This is because in the case of personal cards, customers are protected by various laws to a certain extent. However, in the case of business credit cards, there are not many laws that can safeguard you against many aspects like overspending on it. You will have to track your account constantly to ensure you are within the limits offered.

The interest rate of business credit cards is much higher than the ones for personal use. Hence, be prepared to pay an arm and a leg if you use it liberally without any restraint. Never ever consider opting for cash advances on your business credit card until you have no choice. there are many people who embark on a business dependent on the credit card without cash reserves. If you are one among them, ensure you put the card to effective use and repay the dues on time. Else, it will not only impact the credibility of your business, but also curtail its expansion and your future requests for business loans.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading