How to get my first credit card is a common concern of new business owners. Getting an easy business credit card allows you to establish credit and maintain a high credit score. What’s more, business credit cards offer quick access to money, keeping the cash flow intact. To benefit from a credit card, you need to secure a personal or business credit card. If you are worrying about how to get my first credit card, then read on to find steps to learn how.
Check Your Personal Credit
A solid credit score makes it easy to get your first credit card. Credit card companies invariably use a credit score to judge your creditworthiness. To check your score, request a personal credit report from FICO or other trusted agencies. So make sure you are refinancing student loans properly beforehand to ensure your credit health. You might be surprised to find errors or no credit score at all. Either way, you can start building up your credit and have a realistic expectation when applying for your first card.
Register Your Business Entity
The next step to solving how to get my first credit card is registering your business. Once you have filled out your business registration form with the local state government, your company can be recognized as a business entity. As a result, registering your business allows you to use the business name on the credit card. A legally registered business entity is essential to get your first business credit card that will be accepted by any credit card processor.
Research Convenient Business Credit Cards
After registering your business, you may already begin to receive low interest credit card offers. Be on the look out for business credit card deals. Depending on the credit card company, they may offer some very enticing promotions including bonus points, miles, cash back, low interest or more. Of course, you will want to consider any additional costs, fees or charges that come along with the card. But, once you have familiarized yourself with the terms and conditions, it is time to narrow down the cards that meet your business needs best.
Familiarize Yourself With Fees
Before you decide upon a first credit card to apply for, you are going to want to familiarize yourself with the credit card fees you may encounter. There are many different fees that you may be expected to pay, and you will want to familiarize yourself with them so that you can make an informed decision to choose the best credit card for business, like the Capital One Spark business card.
- Annual fees
- Balance Transfer fees
- Foreign Transaction fees
- Late Payment fees
- Over-The-Limit fees
Once you know what fees there are, you can be sure to pay attention to the different amounts for various credit cards. That way, you will be able to select the credit card with the least fees and lowest costs.
Apply To Get Your First Business Credit Card
Now that your selection is focused, it is time to start applying. As you can imagine, the application to get my first credit card might seem overwhelming. However, the process is quite simple, requiring basic business information, income details, social security number and employer identification number. In case you are wondering, your social security is required for most businesses, especially new ones without established credit. Once your first business credit card applications are complete, you will typically get response fairly quickly. If your applications go smoothly, you will be approved for your first business credit card.
To summarize, how to get my first credit card is a simple process. You simply start with a personal credit check, ensure your business is registered, find a business credit card for you and complete an application. If your business is already set up, you could very well get approved for the company’s first credit card in a matter of minutes.