How to Get a Business Credit Card with Bad Personal Credit

For small business owners, a business credit card can be incredibly beneficial.

These financial tools can enable you to finance business necessities, create a more positive credit history for your business, and even provide benefits such as cash back and travel discounts.

Despite a less than stellar credit score, selecting the right card can be tricky.

This article will discuss how to overcome the challenges associated with having poor personal credit and get approved for a business credit card to help your business succeed.

Building Up Your Personal Credit Score

Raising your personal credit score is an essential requirement for getting a business credit card.

Before you start, it’s important to be aware of the factors affecting your credit score and to take action to correct any misstatements.

You can obtain a free credit report annually from from each of the three major credit reporting agencies (Experian, TransUnion, and Equifax), which is the first step.

Examine your credit report closely, taking note of the trade lines, public records, and credit inquiries sections. If you spot any inaccuracies, file a dispute with one of the credit reporting agencies.

After you have a thorough understanding of your credit rating, the next step is to work on improving it.

Some steps you can take include:

Paying all credit accounts on time.

To protect your credit score, be sure to have a reliable payment history moving forward and avoid missed payments.

Reducing credit card debt.

Pay off your credit cards as much as possible in order to avoid having a high balance that could damage your credit score.

Opening a credit card.

If you don’t have a credit card, you should consider getting one. People with poor credit have a variety of credit cards to choose from. Once you have a card, pick an affordable bill and make sure to pay it off on time and in full.

Adding utility and cellphone accounts to your report.

On-time payments on these types of accounts can also help improve your credit score. Experian offers its free Boost program, allowing users to add non-credit accounts to their credit report.

If you take these steps, you can increase your credit score gradually. Remember that a credit score of 700 or above is considered to be good, so strive for that goal.

The higher your credit score, the more business credit cards you’ll be eligible for.

How to Get a Business Credit Card with Bad Personal Credit

Finding a Business Credit Card You Can Qualify For

When you have poor personal credit, it can be difficult to secure an appropriate business credit card. Despite this, it’s still possible.

Doing research on various business credit cards and their requirements should be one of the initial steps you take. You have a lot of options to choose from, such as charge cards and credit cards.

Charge cards do not have a predetermined limit and must be paid in full within an approximate period of 30 days.

Credit cards come with a limit that you cannot surpass, however, you can make the minimum payment and rollover the rest into the following month.

When looking into business credit cards, make sure to consider the annual fee, APR, balance transfer rules, fraud protection, grace period, interest rates, late payment penalty, and security code requirements.

By reviewing these terms, you’ll get an understanding of the cost and security associated with the card.

It’s important to read customer reviews and compare different business credit cards to determine the right one for you.

It’s also important to remember that individuals with a low credit score still have access to business credit cards that are specifically designed for those types of applicants.

When you improve your credit score to the “good” range, you can begin searching for the best business credit cards available.

If you want to successfully apply for a business credit card, it is important that all the requirements are fulfilled.

Remember that when you apply for a business credit card, you are personally liable for all payments and balances due.

Consequently, opting for a card that you can afford and that will promote your business’ growth is essential.

Do some research and you’ll be able to find a card that both fits your requirements and is affordable. Be sure to read all of the card’s terms and conditions, and fulfill them before submitting your application.

By selecting the right business credit card, you will be able to finance your business expenses and establish a positive credit history.

Final Thoughts

Having a low personal credit rating doesn’t have to stop you from getting a business credit card.

To increase your chances of getting approved for a business credit card, try to understand your credit situation and take steps to improve it, as well as researching different options.

Small business owners should take advantage of the powerful financial benefits of a business credit card.

Utilizing a business credit card can assist in financing business necessities, construct a solid business credit record, and provide incentives and privileges.

For financial responsibility, you should always pick a credit card that you are able to afford and will aid the growth of your business.

Before submitting an application, ensure that you adhere to all the card’s regulations, and read reviews, compare terms and benefits to make a wise choice.

It is important to note that when using a business credit card, you are personally responsible for making all payments and covering any outstanding debt.

Even if you have bad personal credit, it doesn’t mean you can’t be approved for a business credit card.

If you follow the steps in this article, you can increase your chances of approval and select a card that can finance your business requirements and support its growth.