Getting Your First Business Credit Card
Many people believe that the banks will turn their request down due to their lack of credit history, which is possible for small businesses and new start-ups. But one can get a credit
card if he has a steady source of income. Most people stumble into the
same kind of problem when it comes to using and managing their credit card. Most banks ask for prior credit
history or some kind of guarantee so that it could be proved that the
applicants business will be a good payer. But most of the time people
lack this. It is true that building a credit card history is not easy but it’s possible.
Banks are hesitant to issue a credit card to users who are unable to show their credit history. This may involve young people and those who are applying for a credit card for the first time. They will always face this problem. If your business has a good credit history and you don’t, or even vice versa, then consider applying through the most reliable source.
This
problem has many solutions. Some banks routinely offer visa and master
cards to first time applicants. It’s true that at first you will not
have a credit history, but you may have to make a credit
history some where down the line. Making mortgage payments, either
through your business or otherwise, is a good indication that you intend
to pay on time every time.
What if the applicant doesn’t have a credit
history at all? Then he has some other alternatives. Go and buy a
shopping card from your departmental store or a gas station. They offer
store and gas station specific cards, and they will most likely give you
their card. Use that card wisely and mange and properly to build your credit
history. Buy something from the store and then pay it off on time when
the statement arrives. You may do this for several months and then
re-apply for a visa or a master card. The bank will then have a proof of
your steady income and this credit history as basis upon which they will decide whether or not to assign a card to the applicant.
Another way of establishing a credit is to get your self a debit card. Debit cards work like credit
cards but they are issued when a bank account holder applies for it.
They are issued easily. They are secure in the sense that the user can
not exceed the amount he has in his bank account. This is a good option
for those who are having problems in establishing their credit history and getting a credit card for the first time.
Remember
that it is extremely important that you pay off in time if you are
using gas station or departmental store’s card because that will be the credit
history you will show to the bank. As long as you pay on time and do
not carry a large balance from month to month, you have got yourself in
the list of likely candidates for a credit card.
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Tips On Credit Card Application
Different types of credit
cards are widely available in the market today. But somehow, it will
give you a difficult time to know each type and to find the right one.
In this case, it is important that you choose the credit card which gives financial sense to you. And before filing your credit card application from various credit card companies and financial institutions, review these important tips about credit cards.
1.As much as possible, apply for a credit
card having the lowest interest's rate, although, interest rates will
not significantly affect you if you are paying your monthly bills on
time and at full amount. So, be a good credit card holder by paying your credit card expenses on time. This is to prevent you from acquiring future charges such as late fees.
2.Choose the best deals on the credit card APRs. Remember that 0% percent APRs is sometimes too good to be true because it is a fact that credit card companies is not making money out of it. But still, there are different ways on how to find great deals on APRs.
-A credit card that is allowing a balance transfer is good. Other credit
card balances are transferred under the initial APR with lowest
interest's rates. Even if these offers are very limited, it will save
you a lot of money in the future.
-Remain to be a good customer.
Pay your expenses on the specified time. Also keep your balances low so
that you could request for a 0% APR even for a limited period of time.
Most credit card companies find it a good deal since they prioritize good clients and good business deals.
-Online
shopping can help you find various companies offering 0% APRs. Study
carefully all the offers by making comparisons and evaluation.
Sometimes, 0% APRs is offered to the clients over a period of one year
upon acquiring the credit card.
-Read
the terms and conditions regarding 0% APRs. Make sure you understand
it. It is important that you know the period covered by 0% APRs. It will
scare you off when you find out that you are being charged of overhead
expenses. Compute the amount of future interest's rates when the trial
period is over. Weigh the difference. If it is higher than what is being
offered on the trial period, then think twice before pursuing your 0%
APRs application.
3.Choose the credit cards which are offering various reward programs. Give yourself enough time to do a thorough research.
-Cash
back reward programs enables the card holder to obtain a certain
percentage on all qualified purchase back. This becomes a credit on your account.
-The point reward program enables the card holders to get points with every purchases they make using their credit
cards. These points can be redeemed at a particular store, or sometimes
at selected redemption stores. The type of products in exchange of your
points should benefit you a lot.
4.Choose the credit card with higher credit card limit. Consider the factors such as financing fees, annual fees, introductory offers, credit requirements, availability of online banking, and others.
You will never go the wrong way if you follow these important tips. Regardless of what type of credit card you are applying for, always make a wise decision.
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Do You Really Know How to Improve Your Credit?
The only one who can fix your credit is you, and this process can only happen over time as you take steps to improve your credit on your own.
First, contact your creditors
when you realize you are unable to make your payments. If you need
help preparing a budget and working out a payment plan, contact your
local credit counseling service. To locate a credit counseling service near you, go to the National Foundation for Credit Counseling web site or call 800-388-2227.
Next, check your credit report. About one out of every four credit reports contains errors. You may dispute, at no charge, any items you believe are inaccurate. Each credit bureau usually has its own method for filing a dispute, so contact them for more information.
You should collect copies of any supporting documentation and send these with the form you submit. The credit
bureau will investigate your dispute and delete or correct any
information found to be inaccurate. You may request that a copy of your
corrected credit report be sent to everyone who has requested your credit within the past six months.
If the dispute remains, you can file a written explanation that will be sent with your credit
report whenever it is requested. You can also file a written
explanation if there was a good reason that you could not pay your bills
on time, such as unemployment or sudden illness.
Most negative information will only appear on your credit report for seven years.
However, there are a few exceptions:
Bankruptcy information can be reported for ten years.
Information
about a lawsuit or judgment against you can be reported for seven years
or until the statute of limitations runs out, whichever is longer.
Information reported because of an application for a job with a salary of more than $75,000 has no time limit.
Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
Continue to pay your bills promptly, and apply for credit only when absolutely necessary.
With your hard work, your credit will improve over time.
You
just have to be diligent and set your mind to the task at hand. Yes,
it will take time. You have to persevere and get yourself out of the
mess you created.
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