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Signing up for a business credit card can be very fiscally beneficial to your growing company. Before submitting that application, however, you  should become familiar with five of the most frequently asked questions about business credit cards.

1. Can a startup business qualify for a business credit card?
Yes, startup companies are eligible for credit cards as soon as they are officially established. In order to qualify, credit card lenders will use the owner’s personal credit score and income.

2. Does my business have to reach specific revenue levels to qualify?
Yes if you have enough of a business history and a record of revenue and profit. If your firm is just getting started though, your personal income will be used as a qualifying factor.

3. What is more important: interest rate or APR?
The interest rate on a business credit card is the percentage you will be charged on any balances you do not pay in full each month. If you anticipate carrying a balance on your card often or even periodically, scoring a low interest rate is key. The annual percentage rate (APR) is the total adjusted interest rate – including annual fees – and it may be more important to you if plan to pay off your balance each month. In this case you will not be charged the monthly interest rate and it will not affect you much.

4. How can I increase my spending limit?
Credit card lenders will look at your spending and payment history to determine when and how much to increase your business credit card limits. This can happen in as little as six months if you have been punctual with your payments and have paid your balances in full. An increase in your business income can also trigger higher loan limits.

5. Should I use a business credit card to establish my credit?
Wisely using a business credit card is a great way to build business credit. Having a strong business score is crucial to securing safer and cheaper forms of business funding. Small business loans, for example, require good business credit scores. By making purchases and consistently paying your credit card bill on time will build your business credit history and beef up your score.

After understanding the basics of business credit cards, you will be more prepared to search out and apply for the right one for your company.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources