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quick business credit

Quick Business Credit is something every business owner wants for 2017

5 Tips To Getting Quick Business Credit Every Business Owner Should Know

Have you thought that you needed a credit card for emergencies and business purchases, but have not been sure which card to get? If so, you’re in the right place. This article will answer all your questions about business credit cards, how to use them, and what to look for in a credit card offer. Read on for some great tips.

GETTING APPROVED FOR FUNDING

Getting approved for funding for your business is dependent on your perceived ability to repay the loan or line of credit. That’s why it’s important to make your application for credit or a loan stand out and show that your business is creditworthy.

The business credit application is your opportunity to prove that your business is an appropriate credit risk. To give it an advantage and make it stand out from the pile of applications, implement the following five tips.

  • Check Your Personal Credit Reports/Scores
  • Check Your Business Credit Reports/Scores
  • Supply Strong Trade References
  • Supply Company Financials
  • Have a Business Plan Document

HOW ON TIME PAYMENTS IMPROVE YOUR CREDIT INCREASE CHANCES

If possible, pay your credit cards in full, every month. Use them for normal business expenses, such as, gasoline and inventory and then, proceed to pay off the balance at the end of the month. This will build your credit and help you to gain rewards from your card, without accruing interest or sending you into debt. It will also improve your chances of increasing your credit line when you need it.

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If you have poor credit and want to repair it, consider a pre-paid credit card. This type of credit card can usually be found at your local bank. You can only use the money that you have loaded onto the card, but it is used as a real credit card, with payments and statements. By making regular payments, you will be repairing your credit and raising your business lending credibility.

Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.

If you have a business credit card, add it into your monthly budget. Budget a specific amount that you are financially able to put on the card each month, and then pay that amount off at the end of the month. Try not to let your credit card balance ever get above that amount. This is a great way to always pay your credit cards off in full, allowing you to build a great credit score.

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It should be obvious, but many people fail to follow the simple tip of paying your credit card bill on time each month. Late payments can reflect poorly on your credit report, you may also be charged hefty penalty fees, if you don’t pay your bill on time.

There are many different kinds of credit cards that each come with their own pros and cons. Before you settle on a bank or specific credit card to use, be sure to understand all of the fine print and hidden fees related to the different credit cards you have available to you.

You need to pay more than the minimum payment each month. If you aren’t paying more than the minimum payment you will never be able to pay down your credit card debt. If you have an emergency, then you could end up using all your available credit. So, each month try to send in a little extra money in order to pay down the debt.

Keep track of what you are purchasing with your card, much like you would keep a checkbook register of the checks that you write. It is far too easy to spend spend spend, and not realize just how much you have racked up over a short period of time.

Only spend what you could afford to pay for in cash. The benefit of using a card rather than cash, or a debit card, is that it establishes credit, which you will need to get a loan for your business in the future. By only spending what you can afford to pay for in cash, you will never get into debt that you can’t get out of.

Look into whether a balance transfer will benefit you. Yes, balance transfers can be very tempting. The rates and deferred interest often offered by credit card companies are typically substantial. But if it is a large sum of money you are considering transferring, then the high interest rate normally tacked onto the back end of the transfer may mean that you actually pay more over time than if you had kept your balance where it was. Do the math before jumping in.

If you do a lot of traveling, use one card for all of your travel expenses. If it is for work, this allows you to easily keep track of deductible expenses, and if it is for personal use, you can quickly add up points towards airline travel, hotel stays or even restaurant bills.

HOW MANY BUSINESS CREDIT CARDS SHOULD YOU HAVE

You should try and limit the number of credit cards that are in your name, be sure to verify with the credit card company that the card you are applying for will be in your business name and under your FEIN. Too many credit cards are not good for your business credit score. Having several different cards can also make it more difficult to keep track of your finances from month to month. Try and keep your credit card count between two and four.

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After reading this article, you should be far less confused about business credit cards and how to build your business credit fast. You now know how to evaluate credit card offers and how to find the right credit card for you. If this article hasn’t answered absolutely everything you’ve wondered about credit cards, there’s more info out there. We offer a comprehensive business credit builder program that you can do yourself at your own pace. Click here to read more