Business Credit Cards for People with Bad Credit

Filed under: Business Card F.A.Q.

Joseph asks…

I want a loan to make money. Small business loans/credit cards for ppl with bad credit? Exponential growth?

My house was robbed and all my jewellery and money stolen a couple of years ago.
I was about to run a small home business with the money and assets i had saved doing security work.
As I didnt have insurance, I got into debt and had to move so I didnt get hit again.
Now I have bad credit, is there anyway I can get a loan with bad credit???
I only need a small credit card to help me juggle things.
I am now trying to run a business again, but dont nearly have the start or the credit ratings as i previously did,
I am still a student and was hoping to run a business in my part-time.
I am still making about 50-100% profit per month turnover from my money and business.
With this type of turnover even a small loan of 1-2k would grow my business exponentially.
Even 10-20% p.a would be nothing for me to juggle around.
I know it takes money to make money but I cant seem to get over that 1k-2k hill to start my business growing exponentially.
Any tips other than saving or selling my assets?

admin answers:

This what people do not get, PROTECT YOUR CREDIT RATING because it will haunt you for years to come.

In your case you need a card so you can “juggle” things, what does that mean? So you can run it to the limit and get into more trouble with credit.

If you haven’t the money YET to start up your own business you go out and work for someone else until you do have some money and then if you reallllllly, realllllly want it bad enough get another job and save money.

Good luck but depend on your own work to get you going NOT credit cards.

ADDED
What the heck is wrong with saving? Oh I know the I want it NOW attitude.

John asks…

How do I get a Business credit card with bad credit?

I am trying to consolidate my bills and get my credit clear so I can start a business.I have very,very bad credit and I am tryiing to start a business. How would I get a credit card for my business with extremly bad credit. And who will except me?

admin answers:

It’s all tied to your social security number. Business doesn’t matter.

Before you do ANYTHING listen to this. Scroll down and click “Listen to Dave”. JUST LISTEN.

http://www.daveramsey.com/tdrs/index.cfm/2007/9/17/Getting-rich

This one audio clip of his CHANGED MY LIFE when I heard it.

Listen to this man for free, on the radio or online. This is like getting financial wisdom from Bill Gates except this guy has a national radio show.

Mandy asks…

How can I get a business credit card despite bad credit rating in Canada?

Help! I’m trying to start up a business and all I need is a $10k business credit card. But I have a bad credit rating and so far lenders insist I must have a strong co-signer. But I can’t get anyone to do this for me (long story) Any suggestions?
In answer to the first responder, it’s a self-employed business. I’m the only employee. It’s a long story but my personal financial mess is a combination of the high tech collapse (I’m an engineer) that has gone on 6 years, 3.5 years unemployed for myself. Plus, I have a medical condition. I finally made a bold move to get around the medical condition so I can start my own business, now all that is stopping me is a co-signer. I agree, it’s not an enviable position but I have no other choice. Is there any way to get a credit card without a co-signer when you have a bad credit rating?

admin answers:

Actually, it’s a short story. No one else wants to stick their neck out (co-signing) to cover your debts after you have shown little ability to handle your own affairs. They will be 100% financially responsible if you default on your debts and they know it. Operating a business is like operating your own financial affairs on steriods.

Who in their right mind would start a business on credit card with up to 32% anual interest? That is a very large nut to crack on top of paying for employees,your wages, materials, rent,phone and lights…. then look for making a profit too???
Tell me what kind of business you are going into that has a 32% profit after all expenses and I will start one in a heartbeat (as long as it is legal to do so)

Maybe you had better sit down and work out a business financial plan… then work towards fulfilling it and obtaining the capital you need by working and saving the start-up funds… then someone might be willing to listen to your business idea. If you don’t believe in yourself then others will not believe any differently. There is no shortcut to success. Those who cut corners are the first to fail.

Response to additional details:

The most probable way you will get a card is with that much money in their account. Your credit limit will match the amount of money in the savings account held by the credit card company. That way you can start building up a history of purchases and paying the bill on time. You have to re-establish a history of being reliable. After a couple of years of a spotless record, you may find someone who is willing to issue you limited credit and further build from that. I know you are looking for a fast way to do this…. sorry probably not going to happen.

I am not trying to beat up on you… I am trying to show you how others (creditors and co-signers) will look at this. Even if you have lost your job,any work is better than none… even fliping burgers. 10 G’s is not an undoable amount but it might take you 1 year to get there working minimum wage. Hopefull you will do the numbers and see that if you are holding 10Grand worth of debt on a credit card, your whole business profit will go to support the debt and you are working for nothing.

If you were an engineer then you are used to solving problems with a systems approach and a thorough evaluation. It doesn’t sound like you are using your formal education on this new problem. Please write up a plan and look at all the issues systematically. Form a feasable plan and go after your dreams.

Hope that helps

Laura asks…

Looking for business credit card for my small biz. Personal credit is bad but I have my EIN, but been declined?

I already applied for 2 cards and have been declined. Trying to build my business credit. Since its for my business, I use my EIN and not my SS#. Any advice where else I can turn to for a business credit card? Thanx.

admin answers:

Now a days they are not giving credit cadrs that easily. Also dont apply if you think they will decline your application as this will effect your credit history. Try Amex they used to give the business cards very easily. Also apply thru the same bank in which you have bsuiness account.

Steven asks…

can i still get a business credit card with bad personal credit?

if i have bad credit can i still get a business credit card? the application asks for both the business tax id and my personal ssn

admin answers:

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com

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Personal Liability and Business Credit Cards

Filed under: Business Credit Tips

Copyright (c) 2010 Liz Roberts

When applying for a business credit card, you’re required to sign the Agreement form which includes all the terms and conditions of your credit card issuer. Part of these conditions is the Personal Liability Agreement where the business credit card holder agrees to be the one responsible for the payments of all future debts that would be charged to the card.

If you are an entrepreneur with a credit card for business, are you really aware of this condition? Are you well-aware of your obligations as a card holder? In order to be clear on this issue, let us talk about how personal liability applies to business credit cards.

Personal Liability and Small Business Credit Cards

If you have just started your business and you have not yet established your business’s credit history, your potential lender or your credit card company would take your personal credit report into consideration. If your personal credit history qualifies with the card’s requirements, chances are your application would be approved. Nevertheless, you’ll be subjected to the personal liability statement on your contract.

What does personal liability mean? Since your personal credit report was used as the basis of your approval, how you use your business credit card will also directly affect your personal credit history. Even if your business and personal credit card expenses belong to two separate accounts, both will still be reflected on your personal credit report.

This means, if you are frequently late in submitting your payments to your card, your own credit score can be badly affected. Remember that late payments can pull down your credit score whether you used your card for business or your personal credit card. If you exceeded your business’s credit limit, your credit score will also suffer. It is important to be responsible in managing your obligations to both your personal and business cards.

Is There A Way to Free Yourself From Liability?

Is it possible to get away from your business credit card’s personal liability clause? Yes. Bare in mind that the reason why this agreement was executed is because you still don’t have a business credit. Nevertheless, as soon as you get approved for a business credit card, it is wise to also sign up your company with a business credit reporting agency such as Dun & Bradstreet or Experian.

By establishing a separate credit history for your business, you can soon be set free from the personal liability connected to your business credit card. Why do you think this is important? Keep in mind that some consumer rights that are applicable to personal cardholders may not apply to owners of business credit cards.

For example, the right to complain about damages with the products you received or the right to dispute unauthorized charges on your account does not necessarily apply to business credit cardholders. Thus, wrong charges on your business card account can instantly affect your personal credit. By separating your personal and business’s credit report, you can protect your personal credit and free yourself from possible liabilities.

Article Source: http://www.articlesbase.com/finance-articles/personal-liability-and-business-credit-cards-3236484.html

About the Author
New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list for business credit cards

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Business Credit Cards for Business Financing

Filed under: Business Credit Tips

Financing a business can be a challenge, especially if you only have limited funds in your account.  Most entrepreneurs seek out business loans or bank loans in order to finance their businesses.  Aside from traditional business loans, what other options do you have?  Where can you get additional assistance for your business financing purposes?  In this article, we’ll be talking about business credit cards and how they can help in shouldering your expenses and in building your business credit.

Small Business Credit Cards – Wonderful Financing Tools

You don’t have to be a big company to qualify for business credit cards.  Nowadays, credit card companies have issued cards that are especially designed to meet the needs of small business entrepreneurs or home based enterprisers.  Whether you own a small or big business, you can surely find a business credit card that suits your needs.

Can you apply for a credit card even if you’ve just started your business?  The answer is yes.  Even if you haven’t yet established a separate credit history for your company, credit card companies will still consider your application by taking a look at your personal credit.  If you have a good to excellent credit score, you can have an easier time getting approved for small business credit cards with the best deals.  

Nevertheless, if your personal credit score isn’t as impressive as you hoped it would be, you can still get approved for a secured business credit card.  Secured cards are particularly designed for entrepreneurs who have a problem with bad credit.  This business credit card is secured by submitting a certain amount of deposit to the card holder’s account.  In fact, you can use a secured business credit card to start building your business credit.

How can business credit cards help with your financing demands?  First, it frees up your available cash flow so you can save them for your basic expenses.  Having a business credit card also gives you the assurance that you have a reliable financial resource in case of unexpected or emergency expenses.  For start up businesses, credit cards are a great way to invest on the equipment you need without paying for them in cash.

Another advantage of using business credit cards is you can track your spending more conveniently.  Aside from the monthly statements of account sent by your credit card issuer, you can also use the quarterly and yearly account summaries as references to your bookkeeping and accounting tasks.  Many business credit cards provide downloadable account summaries which you can use along with your accounting software.  These references will prove to be invaluable especially in filing your business taxes.  By checking out the exact items you’ve purchases, you can easily determine which ones can be written off from your taxes.

As we’ve said, one of the most important uses of business credit cards is helping you build credit.  How can you build a strong business credit with the use of your credit card?  By staying within your credit limit, using your credit card exclusively for business purposes, paying off your balances in full each month and by promptly submitting your payments.

Article Source: http://www.articlesbase.com/small-business-articles/business-credit-cards-for-business-financing-3117318.html

About the Author

Pamela Williams is a Loan Consultant, Internet Marketer, Writer and owner of BusinessCreditCardSite.com, a finance company Las Vegas Nevada providing support for businesses all across the US particularly with obtaining business credit cards. Visit www.BusinessCreditCardSite.com

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Apply for a Business Credit Card: 7 Mistakes to Avoid

Filed under: Business Credit Tips

At one point or another a small business owner will need to apply for a business credit card. While there are different types of cards to choose from each one has its own strengths and weaknesses.

One of the major factors that can have a serious impact on you personally is what is outlined in the fine print. Even though you are applying for a business credit card for your company the terms and conditions are what matter most.

Every small business owner should be aware of certain errors to avoid when applying for a credit card.

These mistakes have the potential of damaging your personal credit scores as well as putting your personal assets at risk.

While applying for a business credit card may not be the most exciting thing to do but it’s necessary and requires your careful attention to every part of the process.

First of all, when it comes to business credit cards there are six major types of applications with each requiring different types of information.

Some credit card issuers require a personal credit check and guarantee while others may only require a personal credit check if your company has a strong enough credit file that stands on its own.

In addition, some issuers may base its credit approval solely on the creditworthiness of your company which is what most small business owners should strive to achieve.

Let’s take a look at seven mistakes that you never want to make that can cost you money, damage your personal credit and put your personal assets at risk.

7 Mistakes to Avoid When You Apply for a Business Credit Card

1) Not conducting a credit assessment.

Before you apply for a business credit card you should be fully aware of where your credit stands on a personal and company level. Get copies of your personal credit reports and scores from the three consumer credit agencies as well as copies of your business credit files and scores with the three major business credit bureaus.

2) Applying for the wrong type of card.

You should understand the primary functions of the card you are applying for including its limitations. Choosing the best small business credit card requires a full understanding of all the types of cards that are available.

3) Failing to read the fine print.

Just because a business credit card offers all kinds of special perks and rewards doesn’t mean it’s necessarily the best card. Always read the fine print so you completely understand the terms and conditions of the credit card agreement.

4) Chasing teaser rates and special offers.

While promotional offers like a no-interest promo look really attractive most of them come with strings attached. Make sure you understand what conditions must be met and how long your teaser rate stays in effect

5) Applying for the wrong business credit card.

To protect your personal credit you should apply for cards that report your payment experience solely to your business credit files.

6) Providing a personal guarantee.

You can avoid a personal guarantee with specific credit card issuers if your business has established strong business credit files. You can also avoid supplying a PG with certain secured business credit cards.

7) Applying for too many cards.

Be selective on which cards to apply for because too many inquiries on your business and personal credit files can raise a red flag with creditors as well as negatively impact your personal credit scores.

So the next time you apply for a business credit card pay close attention to what you’re signing up for. Don’t get caught making mistakes that can now be easily avoided.

Article Source: http://www.articlesbase.com/finance-articles/apply-for-a-business-credit-card-7-mistakes-to-avoid-3424558.html

About the Author
About the Author Marco Carbajo is founder of the Business Credit Insider’s Circle. Looking to apply for a business credit card? Claim Marco’s popular FREE business credit seminar ($597 Value)! Follow Marco on Twitter @MarcoCarbajo.

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