Using Business Credit Cards With Bad Credit
Getting business credit cards is a handy way to get funding quickly without turning to a loan. For this reason, they are popular among business owners with poor credit trying to rebuild. However, misusing this useful tool can hurt you, so it’s important to be smart with your cards. Here are some valuable tips:
What To Do When You Search For A Business Credit Card
Keep an eye out for cards that are labeled “secured credit”. Secured credit cards make for a solid option for those with lower credit scores. Credit cards that have “secured credit” require a deposit and certain fees. While these fees can be large, the intention is to secure the card from being misused. Your approved line of credit will be the amount of your security deposit.
Try to get a low limit credit card. As a general rule of thumb the higher the amount of credit a business credit card allows, the higher your credit score will have to be in order to get one. Some of the lower limit ones will generally have credit lines between $300 and $500. Note that these carry high set up fees, so you may not want to use one unless it’s necessary.
Consider details of the card. Before you choose potential business credit cards, review the details of said card. Make sure that it is the right fit for you and your business needs. Some things to consider are the interest rates, and potential awards like cash-back or credit benefits, as well as your ability to pay bills once you have the card.
Look into business charge cards. Another possible bad credit solution is business charge cards. The major difference here is that you must pay off the balance in full every billing cycle. Since there is no chance of a balance, poor credit won’t hurt you as much when it comes to qualifying. In addition, every time you pay, your credit will improve.
What To Do When You Have A Business Credit Card
Negotiate your balance. Keep in contact with your creditors to negotiate any missed payments or remaining balances you may have. By offering certain payment plans or options, you may have some fees or penalties waived. Taking the time to do this can mean big dividends for your credit bills and score.
Pay your bills on-time. This may sound obvious but it bears repeating— pay all your credit bills on time. Late fees and missed payments can hurt your credit score, but regularly paying on time can help it grow. In addition, these extra fees may cost money that you can’t afford to spend.
Set up reminders. If you have recurring bills or payments, it can pay off to install some form of reminder. This will help you remember when to pay your bills, making sure that you don’t incur any fees or penalties. A business calendar or smartphone app makes for a great choice.
Know your limits. Knowing the limits of your business credit card is essential for getting the best use of it. Overreaching these limits can hurt your score. Here are a few handy rules of thumb:
- Don’t use your card for every purchase.
- Try not max your credit card out each month.
- Avoid using your card for more than 30% of purchases.
Keep cards open. Cancelling your old may seem like a good idea, but doing so can actually hurt your credit score. A better choice business credit cards is keeping them open and using them sparingly to help your credit.
Funding With Merchant Cash Advances
These won’t be viable instructions for every business or every person. For this reason, it’s important to find alternatives to traditional loans like business credit cards when the standby options fall short.
eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances. These are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.
It’s important to us that you use the funds we offer in the most helpful way possible. As a result, so we place no limit on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take a set part of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.
Interested? All it takes to begin is filling out a simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.