Secured credit cards are famous for their ability to manage a person’s financial affairs. The way they do is by making a deposit in front, so they can’t spend money in one sitting. In addition, secured credit cards are also useful for improving the credit score quickly. However, all these advantages belong to a personal credit card. So, what’s about business/corporate owner? Secured Corporate Credit Card is a solution to solve the problem. What exactly is a secured credit card for corporate owners? What distinguishes it from personal secured credit cards? The following will discuss all matters relating to a corporate secured credit card.
Learn More about Secured Credit Card
As an unsecured loan, a credit card cannot seize or regain control over your properties. Unlike any loan, the credit card doesn’t have any power to confiscate your belongings. For that, it usually imposes a high-interest rate in lieu of loan guarantees provided. Sometimes, high limits make people often forget, and maxed out their credit card.
If the borrower is able to pay the debts, then there will be no significant problems. But, if borrower can’t pay the debts, then the only way is through credit refinement which will surely hurt the provider real bad. To overcome this, some providers provide a solution in the form of secured corporate credit card for the business owner.
The way it works is that you are required to pay some deposit at the beginning of the month as collateral if things go south. After the deposit is paid, then you are free to use your secured credit card. In addition, the limit of credit cards of this type is usually a little, from $200 to $1000, slightly different from secured corporate credit card.
All of the above descriptions are intended for personal secured credit cards. For corporate and business, the type of card is secured corporate credit card.
As we know, opening a business requires a lot of money, and the only way to get funding is by making a loan to the bank. However, banks don’t always grant your loan proposal; one of the determinants is a credit score. If your credit score doesn’t meet the standard (550 points) then the bank cannot help much in your business. However, all that is facilitated since the secured corporate credit card.
Through this secured corporate credit card, you can invest by paying a deposit in front. Then, you can freely use the credit card to buy the need for your business. So, what’s the difference with a personal credit card? Well, for secured business credit card, everything feels enlarged such as a limit that can reach $2500, cash back up to 5%, low annual fee, etc.
That’s a glimpse of a secured corporate credit card. It is the best choice for those who just want to build a business. With many advantages and convenience, corporate credit cards don’t see how many credit scores you have as they just want to help you advancing the business.