You Have No Credit History and Want to Start A Business? It’s Possible

You have these ideas and want to start your own business. The problem is that you don’t have credit history so that you think that it is challenging to get a business credit card. Most business owners know that having business credit card really help a lot in establishing their business. Every business owner agrees that it is important to keep personal finances separated from business’s finances.

Besides being transparent on your business fund, it is important not to purchase personal stuff with business fund, and vice versa. This is the main reason why you need to get a business card that will be used purposely for your business matters.

A business owner with no credit history can be difficult to get the business credit card. Small business starters find it a lot more difficult to attain credit card solely for business. The reason is understandable. When you ask for bank loans, the bank wants to make sure that you are able to pay back the money, with any interests along. And the only way to make them assured is by checking your credit score. The problem starts here. You don’t have any credit history. So it is difficult for them to assess your capability in paying them back. But it does not mean a dead end for you. Follow these quick tips to get your business credit card.

If you know your local bank or credit union, then you are good to go. Most local small banks are easier to approach. They are more open to those who want to apply credit card without a credit history. If your card application is approved, you will be able to get good credit score in which the opportunity is provided for you to get business credit card.

If the first option does not work, you can use PayPal merchant account. Do some business transactions with your PayPal merchant account. You can apply card from them and manage your business with them.

The next alternative is by getting secured credit card from your bank account. Most banks will give you this card if you have savings. Simply deposit your money to your bank account. Just make sure that you have great fund in your savings. The bank will monitor your financial behaviors. Depending on the bank’s policy, you will need few months until you are passed to get a normal credit card.

These 3 steps can do a massive effects on your credit history. Ensure that you always use your business name and report it to the credit reference bureaus. That way you will build a good credit history. If you implement tips mentioned above, you should be able to get your credit card for business in no time.

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