Secured Business Credit Cards: A Smart Choice for Building Business Credit
Business owners often require access to capital to meet their financial needs. While traditional loans and lines of credit are common options, secured business credit cards provide an alternative solution that offers flexibility and ease of access. In this article, we will explore the benefits of secured business credit cards, the requirements to qualify for them, and some of the best options available in the market.
Although both types of credit cards provide easy and flexible access to business capital, business credit cards and corporate credit cards differ in their eligibility requirements. You can open a few business credit cards with only an EIN, including corporate cards like Ramp and Brex. However, most business cards require a personal guarantee and rely on the owner's personal credit history.
CNBC Select rounds up the easiest business credit cards to qualify for, even if you have poor personal credit or limited credit history. These cards are designed to help business owners establish or rebuild their credit profiles. By making timely payments and managing credit responsibly, business owners can improve their creditworthiness over time.
Building a strong credit profile is crucial for any business, and Dun & Bradstreet is one of the three credit reporting bureaus that specialize in business credit reporting. Establishing and building your business's credit profile with Dun & Bradstreet can be a huge boon, as it provides lenders and partners with a comprehensive view of your business's financial health.
When it comes to secured business credit cards, the DCU Visa® Platinum Secured Credit Card stands out as an option worth considering. It offers a relatively low Annual Percentage Rate (APR) compared to other secured cards. However, it does require a higher security deposit and membership with the Digital Federal Credit Union (DCU).
For those seeking rewards and benefits, several secured business credit cards offer attractive programs. The Business Advantage Unlimited Cash Rewards Secured Credit Card image is one such example. By using this card for business expenses, cardholders can earn cashback rewards, helping them save money and maximize their purchasing power.
It's important to note that the best business credit cards on the market typically require good to excellent personal credit or a FICO score ranging from 670 to 850. However, even if you have bad credit, there are credit cards available that can help you improve your credit score. Some of these cards do not require a security deposit, making them accessible to a wider range of business owners.
In conclusion, secured business credit cards are a smart choice for business owners looking to build their credit profiles and access capital. By comparing options from major issuers, business owners can find the best rewards and rates that suit their needs. Applying online for a business credit card is a convenient and efficient way to get started on the path to financial success. Remember to manage credit responsibly and make timely payments to maximize the benefits of these cards.
