Getting Your First Business Credit Card
A credit card can really help get your home based business off the ground if you use it wisely.
Many people believe that banks won’t grant them a card until they’ve built up credit history. That’s true for some, but if you have a steady source of income and decent credit history you’ll probably be surprised at how easy it is.
Banks are hesitant to issue a credit card to users who are unable to show their credit history, but if your home business has a good credit history and you don’t, or even vice versa, then consider applying through the most reliable source.
Don’t get discouraged, though, if you’ve had problems in the past. There are some solutions. Some banks routinely offer Visa and Master Cards to first-time applicants. If you’ve been making mortgage payments or car payments on time, either through your home business or otherwise, it’ll go a long way toward a bank approving you.
If you don’t have any credit history at all, there are some other alternatives. Buy a shopping card from a department store or a gas station. They offer store and gas station specific cards, and they will most likely give you their card. Use that card wisely to build your credit history. Buy something from the store and then pay it off on time when the statement arrives. Do this for several months and then re-apply for a Visa or a Master Card. The bank will then have proof of your steady income and a credit history as basis upon which they will decide whether or not to approve your application.
Another way of establishing a credit is through your debit card. Debit cards work like credit cards, but they are issued when a bank account holder applies for it – and they’re issued easily. They are secure – you can’t exceed the amount you have in your bank account. That’s a good option for over-spenders or people having a hard time getting a first-time credit card.
The most important thing to remember is to pay the card you’re using on time every time. As long as you do that and don’t carry a large balance from month to month, you’ll find your home business will have good credit in no time.