Are Business Credit Cards No Credit Check Applications for Real?

If you're like most business owners, you've probably received more than one business credit cards no credit check application. They promise you a high-limit credit card for your business with no credit check involved. Are these applications for real? Usually not. Here are some things you need to watch out for.

First Things First

First and foremost you need to understand that no legitimate credit card company is going to offer you or your business a credit card without running a credit check. The only exception to this rule is in the case of prepaid or secured credit cards. If you want an unsecured business credit card, a credit check will be needed regardless of what the con artists want you to believe.

The Money Factor

One of the first things you need to look into when you receive those business credit cards no credit check applications is whether or not the company sending the application is asking for any up-front money. If a credit card company asks you to send in money before they issue a card, it's a scam.

The only exception to this rule is in the case of secured credit cards, where a deposit is necessary in order to secure your line of credit. Legitimate credit card companies will not expect up-front payments for application or processing fees. If fees are charged, they'll be charged to the credit card account once the card is issued to you.

Weighing Your Options

If you are looking to establish credit for your business, don't fall for those business credit cards no credit check applications. Instead, look into obtaining a secured business credit card to meet your business's credit needs. You will have to provide an initial deposit (usually a $300 minimum) but it's a great way to build the credit your business requires.

The good news is that secured credit cards can lead to unsecured credit cards. They're the means to an end, not the end itself. If you pay your secured business credit card on time each and every month, eventually your business will be able to qualify for an unsecured credit card and the credit check won't matter.

Credit cards are basically an unsecured line of credit, and no lender in their right mind would issue you one without knowing what your business's credit history or your personal credit look like. If you're serious about the financial well-being of your business and building a solid business credit history, put those business credit cards no credit check applications where they belong -- in the garbage.