While you are looking for a perfect business credit card, often you will be trapped in this situation: you want to have a credit card so you can increase your credit history, but you don’t have enough credit score to qualify for a credit card. Even worse, you are a new credit card starter and credit score is a non-existent thing. Actually, this case can be solved by using secured credit card. It’s not so hard to discover secured credit card that suits your business.
For a business owner, a life before they discover secured credit card is tough. Several of them only have a fair or even bad credit score. Therefore, getting a business loan can be so hard. The credit card companies only accept those card holders which meet their requirement and have a qualified credit history. However, you can actually gain loan from lenders and improving your credit score all at once by using secured credit card. Many businessmen successfully discover secured credit card benefits for their imperium.
After a business owner has discover secured credit card they favor, a cash deposit is required at the first time. This cash deposit also acts as the credit card limit for the credit card. If you put $250 as the prior deposit, then your credit card limit will be $250 as well.
Credit card companies discover secured credit card as a way to minimize their risk of giving loan for business owner with bad credit score. When the cardholder didn’t pay the debt on time, the company can take the cash instead even though there obviously will be a late payment penalty for the card holders. However, the cardholder’s credit score will not be hurt so it’s a fair solution for both party.
On the other hand, business credit reports are slightly different with the personal reports. Many cardholders discover secured credit card that they use did making a report to one or more credit card score bureau. However, not all secured credit card provider does a monthly report to the credit bureau.
Several Secured Credit Cards Recommendations
Let’s discover secured credit card which suits your business profile. The first one is Business Secured Credit Card from Wells Fargo. It is suitable for a relatively small business. Moreover, the rewards are available; there is low annual fee and no foreign transaction charges. Next is Business Credit Card from BBVA Compass Secured Visa®. It fits to a start-up business. There is no annual fee at the first year, no extra charge for additional employee cards and the rewards are available
The next one is Secured Mastercard Capital One that’s good for freelancer and selfpreneurs. It offers low initial deposit and no annual fee. It also has an access to a higher limit without additional deposit. After you discover secured credit card recommendations above, it is time for you to make a choice. Which one is more suitable for your company? Which card can guarantee your business succession?
Once you discover secured credit card that fits your company, you have to use it wisely in order to boost your credit score and gain credit card company trust.