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Friday, Apr 18th

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The ABCs of Business Credit Cards

The ABCs of business credit cards

A business credit is very important for business women. It is issued to a small business owner in the name of business. The credit card allows the owner to make payments, get loans and build credit history eliminating the need of putting their own personal credit on the line. Another benefit of the credit card is that if the small business fails, it does not affect the owner's credit history. Applying for and getting a credit card can be complicated and can involve some risk. But these risks can be avoided by being careful as they apply.

Getting started: The business owner should establish some assets and start a business-only checking account. The credit score of the business owner will be double at first as the credit score of the business, but it changes as the business checking account is used more. The business owner should ensure that all the bills are paid on time as failing will increase the chances of getting a business credit card less. Since you should have a credit score established, you should wait for a year before applying for the card.

Choosing a Good Credit Company: All major credit card companies provide a business credit card. Take a look at the products of each companies and figure out the one that works best for your financial needs. Check each card's interest rates and fees carefully. Try to get the right range of services in low fees. Ensure that you have enough funds to pay your credit bills.

Paperwork: Once you choose a credit card company, you can begin the application process. Make sure that you have required information and documents on hand while applying for the business credit card. It includes Social Security numbers of the owner and the person who is authorized to use the credit card, name of the business, street address, copy of business gross sales, and the business's tax ID number.

Next Step: Once you have submitted your documents, your lender or bank will look over it whether the business is financially strong to get a credit card or not. If your application is rejected, you always have an option of filing the application again, but you should wait for atleast a year before doing so.