Getting a Business Credit Card Without Credit History

Is business credit history necessary in applying for a small business credit card?  The answer is yes.  Those who have a business credit history have better opportunity to get approved without difficulty.  On the other hand, entrepreneurs who have not yet established credit may have a more difficult time finding a business credit card with the best deals.

What You Can DO If You Have No Credit History

What action can you take if you don’t have a business credit history?  Here are some steps that you can do to improve your chances of getting approved for a business credit card:

First, you’ll need to raise your personal credit score. Business credit card issuers would be taking a look at your personal credit history in the absence of business credit.  This means, their decision to approve your application would greatly depend on your personal credit rating.

Obtain a copy of your personal credit report to check the status of your credit.  Do you think you have an impressive rating?  If you feel that your personal credit score isn’t enough to win approval from lenders, you can still work on raising your score.

Take note that because your personal credit history is used with your business credit card, you will be held personally accountable for all charges made in your business credit card account.  As the owner of the business, you will be subjected under the personal liability clause of your credit card company.

Register you company with the Dun & Bradstreet.  D & B is a major credit reporting agency that exclusively caters to businesses.   By signing up for a D&B account, you can start building a separate credit history for your business.  

A new business may need to wait up to two years to build business credit.  This is why you need to register with a business credit bureau at the soonest possible time.  The earlier you can establish your business credit, the sooner you can be set free from the personal liability associated with your business account.  Don’t forget to request from you business credit card issuer to make the necessary changes as soon as you’re already qualified to do so.

Apply a business credit card from your bank.  If you’ve been a long time client of a bank where you have your personal savings account, you can consider applying for a business credit card from the same bank.  Your bank may require you to submit a deposit in your account but as an existing customer, you could be provided with a small business credit card more easily.

It is also worth noting that the best business credit card deals in the market are usually reserved for entrepreneurs with excellent business credit.  But even without a business credit history, you should not settle for unfair charges.  DO research and take time comparing different small business credit cards and you should be able to find the perfect credit card for your business.