Learn What You Need to Know About Bad Credit Business Credit Cards
The problem with bad credit business credit cards is the same as with any other bad credit cards. They tend to charge ridiculously high fees and interest rates. Fortunately, this doesn’t apply to all credit cards, and there are bad credit business credit cards that won’t leave you scrambling for bankruptcy protection.
Separating personal and business credit
As a business owner, one of the most important things to do — for yourself and your business — is keep your personal credit separate from your business credit. If you do that, your poor personal credit score won’t affect your ability to obtain a business credit card — and vice versa.
If you don’t already have an EIN, get one. An EIN is an employer identification number and functions just like an SSN, but for a business. It is highly illegal to obtain an EIN for personal use: they are not credit reset buttons. But they are very useful for starting up a business or building a credit record for business purposes.
Once you have your EIN, you have an entire credit record separate from your personal history — and any black marks on your personal record. Of course, you’re starting from scratch. So before you can hope to get any really good credit, you’ll have to take a few months to build a history of positive payments. Still, getting an EIN is a great shortcut to avoid dealing with bad credit business credit cards.
When separation doesn’t help
Of course, if it’s your business that has the bad credit score, then separating your credit isn’t going to do much good. If that’s the case, you’re going to have to look into bad credit business credit cards. They are out there, but you have to be selective. Don’t jump at the first card that offers. Take the time to look at things like APR and annual fees, just like you would for any other card.
Remember, the point of a credit card is to help your business. If you load yourself down with bad credit business credit cards that are, well, bad, you’re not doing yourself or your business any favors in the long run.
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- Why a Secured Small Business Credit Card can Work for You
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- The Impotance of Business Credit Report
- Business Credit Cards: What You Must Know on Their Realistic Disadvantages
- Where Can I Find Unsecured Credit Cards For People With Bad Credit?
