The rewards and benefits of some business credit cards compete with those offered with personal credit cards. Some of the best cash-back credit cards and small business travelers have large bonuses and a generous reward structure. The offers can be so good that you can be curious if you can apply for a credit card without having a business. Can I apply for business credit card?
Regardless of the size of your business, applying for a business credit card is always a good idea. With a business credit card, you can build your company’s financial history, alleviate cash flow problems, transfer expenses to your employees, keep separate personal and business finances, and more. In addition, thanks to the appropriate card you can earn rewards – such as exchangeable points, cash back and even free hotel stays – that will help you run your business efficiently.
That said, however, even a simple online search for business cards can produce overwhelming results. Not only a lot of cards are available on the market, but each of them contains a comprehensive description of its conditions and advantages – in addition, the application process should be considered. That’s why if you’re wondering exactly how to get a business credit card, you’re not the only one.
How to apply for a card?
After completing the credit card application for a small business, tell the truth. It’s OK if you’re just starting out and you’re not bringing thousands of dollars in revenue annually. One of the reasons for getting a business credit card is to help you grow your business. It’s so important that you should hear it twice: don’t lie on the credit card application for small businesses.
If you are a startup and you have not earned any income yet, put it in the application. You can also estimate your expected income. Banks want your business to grow. The bank also uses the card. It is a mutually satisfying relationship.
The bank’s decision on the loan application for small businesses will be based on your personal credit profile. Banks assess your total income and creditworthiness. So if you qualify for a similar personal credit card, you’ll probably be approved for a business credit card. Banks do not require a personal card to approve a small business card.
What should be remembered?
When applying for the first credit card for a small business, you must include business income and personal income, because you will personally support the loan for your business. This is easy for most business credit card applications that contain sections on annual business income and subsequent sections on annual gross income.
Business credit cards do not have all the collateral that consumer credit cards provide. For example, credit card issuers are required to provide advance notice and cancellation instructions before raising a fixed rate for consumer credit cards. The same principle does not apply to business credit cards, which can lead to an unexpected increase in the interest rate on the balance.
And if your business credit card has a balance with different interest rates, your credit card issuer does not have to impose over the balance with the highest interest rate, which can lead to higher financial costs.