Published By Janet Gershen-Siegel at November 14th, 2018
Are you trying to find a fantastic business Visa card with no annual fee? So we took care of all of the research for you. We found a number of other choices with great perks, so be sure to check in case any of those end up being a better deal for you. We looked at a lot of small business credit cards; here are our favorites.
According to the SBA, business credit card limits are 10 – 100 times that of personal cards! This means you can get a lot more money with business credit. And it also means you can have personal credit cards at shops. And you would now have a second card at the same stores for your business. Also, you will not need to have collateral, cash flow, or financials in order to get company credit.
Advantages vary, so make certain to select the perk you prefer from this assortment of possibilities.
For a 0% APR time period, we like the Ink Business Cash ℠ Credit Card. Also, you pay no yearly fee. It’s got an interest-free period. It has flexible cash-back rewards. There are spending limits for employees. But you will have to have a credit score of 690 or higher.
For Low APR/Balance Transfers Business Credit Cards, we like the U.S. Bank Business Edge Platinum. So you begin with twelve months of 0% APR financing on new purchases and balance transfers. There is a 3% balance transfer fee.
Afterwards, the purchase APR is a variable 10.49% – 18.49%. And this depends on creditworthiness. There is no annual fee. But this card is just available to people with great or superb credit. But there is no rewards program for purchases.
For Fair Credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. But you will have to have a credit score of 690 or higher.
But BEAR IN MIND: the ongoing APR is 23.99% variable APR.
Check out the Spark Cash Select from Capital One. So you get 1.5% cash back on all purchases. So this is without limitations.
New cardholders can also get a $200 cash bonus. But that is as soon as they spend $3,000 on new purchases. So this is during the first three months of account opening.
New customers also get initial APR of 0% on purchases. But that is for nine months. Also, there is no annual fee.
Make sure to take a look at the Ink Business Preferred Card from Chase. Earn 80,000 bonus points. But this is after you spend $5,000 on purchases. And it is within your initial three months from account opening.
Get three points for each dollar. But this is on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, and cable and phone. It is also on advertising purchases made with social media sites and search engines. But this is for each account anniversary year.
Also, get one point per dollar on all other purchases. There is no limit to the amount you can earn.
One good alternative to a business Visa card is to build business credit. Every company can establish business credit – even startup ventures. Here’s how.
Carrying out the steps out of order will cause repeated rejections. No one can start at the top with corporate credit. For example, you can’t start with store or cash credit from your bank. If you do you’ll be turned down 100% of the time.
A corporation needs to be trustworthy to credit issuers and vendors. That’s why, a corporation will need a professional-looking website and email address, with site hosting bought from a merchant like GoDaddy. Additionally company telephone and fax numbers should be listed on 411.com.
Additionally the business telephone number should be toll-free (800 exchange or the like).
A small business will also need a bank account devoted only to it, and it has to have every one of the licenses necessary for running. These licenses all must be in the exact, correct name of the business, with the same business address and telephone numbers. Note that this means not just state licenses, but potentially also city licenses.
Visit the Internal Revenue Service web site and obtain an EIN for the company – they’re totally free. Choose a business entity like corporation, LLC, etc. A company can get started as a sole proprietor but will most likely wish to change to a form of corporation or partnership to lessen risk and maximize tax benefits.
A business entity will matter when it comes to taxes and liability in case of litigation. A sole proprietorship means the business owner is it when it comes to liability and taxes. No one else is responsible.
If you run a small business as a sole proprietor at least be sure to file for DBA. If you do not, then your personal name is the same as the small business name. Because of this, you can wind up being personally liable for all company debts.
Also, per the Internal Revenue Service, using this arrangement there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for incorporated businesses! Prevent confusion and substantially decrease the odds of an IRS audit as well.
Start at the D&B website and get a free DUNS number. A DUNS number is how D&B gets a corporation in their system, to generate a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process. By doing so, Experian and Equifax will have activity to report on.
Start with the vendor credit tier. First you need to build trade lines that report. This is also known as vendor credit.
Then you’ll have an established credit profile, and you’ll get a business credit score. And with an established business credit profile and score you can start getting store and cash credit.
These sorts of accounts tend to be for the things bought all the time, like coffee, shipping boxes, outdoor work wear, ink and toner, and office furniture.
But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are in most cases Net 30, versus revolving.
Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, such as within 30 days on a Net 30 account.
Net 30 accounts have to be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.
To start your business credit profile properly, you should get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then make use of the credit, repay what you used, and the account is reported to Dun & Bradstreet, Experian, or Equifax.
Not every vendor can help like true starter credit can. These are merchants that will grant an approval with nominal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
But you may need to apply more than once to these vendors, and you may need to purchase some items you do not need to have, to validate you are reliable and will pay in a timely manner. Contemplate contributing nonessential things to charitable organizations.
Once there are 5 – 8 or more vendor trade accounts reporting to at least one of the CRAs move onto the retail credit tier. These are service providers like Office Depot and Staples. These companies are more likely to have goods you need. Use the corporation’s EIN on these credit applications.
One good example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a DUNS and a PAYDEX score of 78 or better.
Are there 8 – 10 accounts reporting? Then move onto the fleet credit tier. These are service providers like BP and Conoco. Use this credit to purchase, fix, and maintain vehicles. Make sure to apply using the small business’s EIN.
Have you been sensibly handling the credit you’ve gotten up to this point? Then move to the cash credit tier. These are service providers like Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.
These are companies such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are often MasterCard credit cards. If you have 14 trade accounts reporting, then these are feasible.
Know what is happening with your credit. Make certain it is being reported and fix any inaccuracies as soon as possible. Get in the practice of checking credit reports and digging into the specifics, and not just the scores.
We can help you monitor business credit at Experian and D&B for only $24/month. See: https://www.creditsuite.com/business-credit-monitoring. If you go through the business CRAs, then Experian and Equifax are $19.99, and D&B ranges from $49.99 to $99.99.
Update the information if there are inaccuracies or the details is incomplete.
What’s all this monitoring for? It’s to fix business credit errors in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs generally want you to dispute in a particular way.
Disputing credit report mistakes normally means you mail a paper letter with duplicates of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always mail copies and retain the originals.
Disputing credit report inaccuracies also means you precisely itemize any charges you contest. Make your dispute letter as crystal clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.
Always use credit responsibly! Don’t borrow more than what you can pay back. Keep an eye on balances and deadlines for repayments. Paying off on schedule and in full will do more to boost business credit scores than pretty much anything else.
Growing corporate credit pays. Great business credit scores help a small business get loans. Your lending institution knows the small business can pay its financial obligations.
They understand the corporation is authentic. The company’s EIN connects to high scores, and lending institutions won’t feel the need to demand a personal guarantee.
Your best company credit cards depend on your credit history and scores. Just you can decide which rewards you want and need, so be sure to do your due diligence. And, as always, make certain to build credit in the prescribed order for the max, fastest benefits. Check out how this will help your company get business credit cards.