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Credit Card Applications » News » Other » Secured Business Credit Card

Secured Business Credit Card

July 28, 2008 | Updated on July 28, 2008
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The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

Establishing Business Credit - What's New?

The general opinion has been that all credit cards for business purposes are the privilege for good credit customers with high income and stable source of it. Thus, traditionally, business credit cards are issued on an unsecured basis, being available for only qualifying applicants. Partly, this is true and only very few people know that they can support their business development even if their personal credit records are poor or even zero.

This support can be implemented through a secured business credit card which is acquiring great popularity among small business owners without a decent credit history. It may seem strange. What's new about a secured card when you have to fund this card instead of your business? Read on for the answer.

A secured business credit card helps establish your business credit history which is indispensable for a full-blown financial activity and fruitful deals with partners. This is a good reason enough to risk your own money by opening a secured card account, isn't it?

Yes, you will have to part with some of your funds in case you default on the business secured card as the funds will be withdrawn from your account. That's how secured cards work. But you should regard it as a favorable condition for your business management as the more disciplined you are, the better your business history grows.

What are other benefits of a business secured card, except that it establishes your business credit file? Well, all business cards, secured and unsecured, are certainly designed to make the financial management of your business easy and protected. As compared to secured cards for personal expenses, these include such benefits as extended warranties on business equipment, special discounts on eligible business purchases, travel and auto rental insurances, overdraft protection and many others.

Then, a secured business card comes with a low interest rate and so allows you to save on business equipment purchases, trips and other expenses. The high quality, customer-friendly online banking services, such as online account access, online bill payments and additional services like those helping you track your credit scores, help manage your business expenses and control your finances flow in a most effective way.

No wonder, that so many people with poor or bad personal credit rating opt for secured business credit cards as their everyday paying tool.

If a secured card does not appeal to you but you are determined to start up business and find means to fund it, there are some really profitable starter unsecured card offers for you, issued by Citibank, Chase and Capital One Bank. However, to qualify for their cards, you are required to have good or at least average personal credit.

This is especially true to Capital One Bank which is ready to approve applicants who are just building their credit history and are going through one of the stages up to a higher credit rating.

Unsecured credit card for business requires greater responsibility and poses a greater risk to your business, so if you qualify, be very careful and thoughtful using it.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
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