Your First Business Credit Card

Obtaining and Using your First Business Credit Card

Many people believe that banks won't grant them a business 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.

Fact is, you probably won't have to raise a finger for the offers because as soon as your home-based business is started, your mailbox and e-mail will be flooded. The main hassle in selecting the business credit card for you is finding it in the multitude of offers that a growing market throws at you. There's a wide array of discounts, bonuses, rewards and benefits to find the perfect card for your company profile.

Keep in mind that banks are hesitant to issue a credit card to users who are unable to show their credit history. If your home-based business has a good credit history and you don't, or even vice versa, consider applying through the most reliable source.

Credit history problems do have 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 business or otherwise, it'll go a long way toward a bank approving you.

If you don't have any credit history at all, 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 a proof of your steady income and this 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.