Opening a business can be tough and when you’re short on cash, you may have to resort to a small business credit card. Since a lot of businesses do go this route, I highly advise you look into the downfalls before you actually start using it. If you abuse your card, you’ll find yourself in so much debt, you may never get yourself out of it.
Applying for a small business credit card does have it’s benefits though. If you have a cash credit card for example and you do a lot of spending, you’ll find yourself getting rewards month after month just by making every day business purchases. These points can add up fairly quick. Remember, as long as you pay your card off in full, you’ll take full advantage.
If you’re curious on how you can apply for a small business credit card, here are a few tips you can follow, so that you can get the right card for your business:
Check online - There are many websites online that will cater to your needs and are more than willing to help with your business credit card needs. A website such as FINDbizcards for example will allow you to look at all the cards the major companies such as Visa have to offer. Everything from cash back to airline rewards, you’ll be able to choose a card that fits your spending needs. If you fly a lot, I would apply for an airline rewards card. If you want cash back, apply for a cash back card, etc.
Have great credit- Since a business card is technically for one person, it’s important that you have great credit. The credit card companies are going to look at your credit, not the business. Since the business is owned by you, it’s going to be your credit that matters. So, if you have bad credit, you’re going to want to apply for a card that caters to bad credit. If you want the best rewards, you’re going to want to have great credit.
Know what you want – I know I already mentioned this above but you’re going to want to know what kind of credit card you want for your small business. Below are just a few of the categories you can apply for –
- Cash back cards- Every time you spend money, you’ll get a percentage back.
- Airline reward cards- Every time you spend a dollar, you’ll get miles toward your next plane ticket.
- Gas rewards – If you tend to use a lot of cash, this card will give you a nice percentage back on gasoline.
- Points based – Like cash back, you’ll get points back instead of cash. These points can then be used to get gift cards, etc.
Apply and be responsible – Once you finally find the card that you like for your business, make sure that you treat it like a personal card. It’s not free money! Every time you use it, make sure you’re buying what your business needs. If you don’t, you may find yourself in that awful thing called debt. It’s important that you pick the best card for your business because you really can take advantage of all the rewards!