Tips For Small Business Credit Cards

Posted On: October 1, 2006

Author: Red
Posted: Sun Aug 08, 2004 2:50 pm
Post subject: HELP: Small Business Credit Cards

I am a small business owner with a pretty low personal credit score, simply because I don’t have much credit history.

I need a business credit card with about a $20,000 limit, but every card I apply for denies me.

Any ideas?

Are you personally guarenteeing the loans you apply for? How is your personal credit looking - that may be what they are looking at for approval.

You might try with a local bank or credit union to see if they can help you over the bigger companies out there.

I had a startup loan guaranteed through a relative’s life insurance policy. Personal credit score isn’t good, though I’m not sure why. No late payments….maybe because there isn’t much history.

I tried getting one through my bank but got denied. I don’t mind having a high interest rate, I just need a card ASAP

http://www.cardratings.com/smallbusinesscreditcards.html

Here is list of current business credit available -

There could be a few reasons why you are not getting approved,

You say payment history is good last two years back at least…

Utilization is important for the scores to be high, meaning high credit limit verses low balance across the accounts you are using.

You say you already know you don’t have sufficient history, but if someone added you as AU to their account that might help your score raise. (AU = Authorized user) don’t have to use their account, just get it added. And you want prime credit - meaning high credit limit / low balances, pure payment history, and long time established accounts… usually 30 to 60 days these can be added to the credit report if the company you are added to has policy to report AU accounts.

Inquiries and new opened accounts could be stopping you as well, if you shop to much now it will just keep dropping the scores, so you need to identify what it is exactly that is keeping you from being approved.

Have you received adverse action letters from any of the companies you have applied for so far? If so their letter should give a reason.