Published By Janet Gershen-Siegel at February 18th, 2018
Would you like to learn how to get business credit cards? We can show you just how to get company credit cards the right way.
First, let’s talk about credit lines.
A credit line, or line of credit (LOC), is an arrangement between a bank or private investor that establishes a maximum loan balance that a borrower can access.
A borrower can get access to funds from their line of credit any time, so long as they don’t go over the maximum set in the arrangement, and as long as they meet any other conditions of the bank or investor like making on time payments.
Credit lines deliver many distinct benefits to borrowers including versatility. Borrowers can use of their line of credit and just pay interest on what they use. Compare this to loans where they pay interest on the total borrowed amount. Credit lines can be re-used, so as you acquire a balance and pay that balance off, you can use that accessible credit again, and again.
Credit lines are revolving accounts similar to credit cards, and are comparable to various other kinds of financing such as installment loans. Oftentimes, lines of credit are not secured, much the same as credit cards are. There are some credit lines that are secured, and hence easier to get approval for.
Credit lines are the most commonly requested loan type in the business world. But although business owners prefer them, authentic credit lines are uncommon, and challenging to find. Many are also very difficult to get approval for requiring good credit, good time in business, and good financials.
But there are various other credit cards and lines that few know about that are attainable for startup companies, poor credit, as well as if you have no financials.
Many credit line varieties that most business owners think of come from standard banks and standard banks use SBA loans as their principal loan product for small business owners. This is because SBA guarantees as much as 90% of the loan in the event of a default. These credit lines are the most challenging to get approval for because you must qualify with SBA and the bank.
Credit cards normally offer 0% intro rates for up to two years. This is very helpful for startups especially. Also, credit lines allow you to take out more cash at a much cheaper rate than do cards. These are the main two differences that will affect you between credit cards and credit line. Investopedia even says that, “lines of credit are potentially useful hybrids of credit cards.”
Both cards and lines are revolving credit. Credit lines are more challenging to get approval for as card approvals are normally very fast, many times automated, while line require an in-depth underwriting review. Lines usually offer lower rates, per Bankrate card rates average 13% while lines average 4%.
The majority of them do report to the consumer credit reporting agencies. They all require a personal guarantee from you. You can get approval usually for one card max as they stop approving you when you have two or more inquiries on your report.
Most credit card providers feature business credit cards including Capital One, Chase, and American Express. These have rates similar to consumer rates and limits are also similar. Some of them report to the consumer reporting agencies, some report to the business bureaus. Approval requirements resemble consumer credit card accounts.
Generally, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they won’t approve you for more credit since they have no idea how much other new credit you have recently obtain. So they’ll only approve you if you have fewer than two inquiries on your report within the most recent six months. Anymore will get you refused.
With our Credit Line Hybrid, you work with a lender who focuses on securing business credit cards. This is a very rare, very little know about program that few lending sources offer. They can commonly get you more approvals than you can get on your own.
This is because they are familiar with the sources to apply for, the order to apply, and can time their applications so the card issuers won’t decline you for the other card inquiries.
Multiple cards create competition, and this means you can get a raise in your limits typically within 6 months or less of initial approval. Approvals can go up to $150,000 per entity such as a corporation.
Not only will you get funds, but you build your business credit also so within three to four months, you can then use your newly established business credit to get even more money.
Much like with just about anything, there are big benefits in working with a source who concentrates on this area; the results will be much better than if you try to go at it by yourself.
You have to have excellent personal credit right now.
You can get approval using a guarantor and you can even use various guarantors to get even more money. There are even other cards you can get using this very same program but these cards only report to the consumer reporting agencies, not the business reporting agencies. They are consumer credit cards as opposed to business credit cards.
They deliver similar benefits which include 0% intro APRs but they’re much easier to qualify for.
You can get approval with a 650 score and seven inquiries (or fewer) in the last six months and you can have a bankruptcy on your credit and other negative items.
With all preceding cards, you should have good consumer credit to get approval but what if your personal credit isn’t good, and you do not have a guarantor? This is the time when building company credit makes a ton of sense even though you have good personal credit, building your corporate credit helps you get even more money, and in the absence of a personal guarantee.
Building business credit is another means of how to get business credit cards.
Company credit is credit in a company name, associated with the company’s EIN number. You can get three types of corporate credit cards.
Start with vendor credit, which frequently offers net 30 terms used to start a business credit profile. Then there’s store credit: get credit cards with high limits at most establishments. Next come bank and fleet credit, where you can get Visa, MasterCard, American Express cards you can use anywhere. You can get these without any credit check or guarantee. Limits are often $5,000 – $10,000 to start, and can exceed $50,000.
Now this is how to get business credit cards!
Your small business can get credit cards and financing, if you know where to look. Learn more here and learn how to get business credit cards.