Credit Cards

Credit Cards For New Businesses With No Credit History

Credit Cards For New Businesses With No Credit History

Are you an entrepreneur gearing up to launch a new business venture? Wondering how to secure a credit card for your new business with no credit history? You've come to the right place! At Flik Eco, we understand the challenges faced by budding businesses, and we're here to help simplify the world of personal finance for you. In this article, we'll dig deep into the realm of credit cards for new businesses and provide tips on how you can secure one, even if you don't have any credit history.

Credit Cards For New Businesses With No Credit History Table of Contents

Why a Business Credit Card is Important

Understanding the Challenges

Why a Business Credit Card is Important

A business credit card can offer numerous benefits to new business owners, including:

  • Separation of business and personal expenses: This helps you to better track your business expenses and simplifies tax preparation.
  • Building business credit: Establishing credit history for your business can make it easier to obtain loans and secure better loan terms in the future.
  • Financial Flexibility: Credit cards provide immediate access to funds necessary for purchasing supplies, inventory, or other expenses.
  • Perks and rewards: Many business credit cards offer rewards programs, cashback, and sign-up bonuses that can benefit your business.

Understanding the Challenges

Unfortunately, securing a credit card for a new business with no credit history can be challenging since many issuers want well-established businesses with a solid financial track record. However, don't let this deter you, as there are options available!

How to Get a Credit Card for New Businesses with No Credit

Here are some steps to follow to get a credit card for your new business:

  1. Assess Your Personal Credit:

    While obtaining a credit card solely based on business credit can be difficult, many issuers use the owner's personal credit as a deciding factor. Check your credit report to ensure there are no discrepancies and improve your personal credit score if needed.

  2. Register Your Business and Apply for an EIN:

    To further separate your business and personal finances, register your business and apply for an Employer Identification Number (EIN). This also makes your business more legitimate in the eyes of creditors.

  3. Select the Right Type of Credit Card:

    Depending on your situation, there are different types of credit cards available:

    • Secured Business Credit Card: These cards require a security deposit that typically serves as your credit limit. This option is more accessible for businesses without credit history.
    • Business Charge Card: These cards require full payment each month and can help build business credit. However, they might still look at the owner's personal credit.
    • Personal Credit Card for Business: If you're unable to secure a business credit card, consider using a personal credit card exclusively for business expenses. Keep in mind that this approach might not help build business credit.
  4. Compare Cards and Apply:

    Take the time to research various credit card options, paying attention to fees, interest rates, and rewards. Apply for the card you think best fits your needs and financial situation.

Credit Cards For New Businesses With No Credit History Example:

Meet Emily. She is a passionate entrepreneur who just started her online clothing store. She has been bootstrapping her new business, but she now needs additional financial flexibility. Without any business credit history, Emily is unsure how to proceed.

Emily takes the following steps:

1. She reviews her personal credit score, finds some inaccuracies in her credit report, and successfully disputes them. This improves her overall credit score.

2. Emily registers her business and applies for an EIN, strengthening the legitimacy of her business.

3. Based on her situation, Emily decides to apply for a secured business credit card. She compares various credit cards and selects one with a low-security deposit and cashback rewards on business expenses.

4. She fills out the credit card application, providing her EIN, personal credit information, and details about her business.

Congratulations! You're now well-equipped to navigate the world of credit cards for new businesses with no credit history. By understanding the challenges and following the steps outlined in this article, you're one step closer to securing a credit card that can help you grow your business. Don't forget to explore more Flik Eco guides for other valuable personal finance and investing tips. If you found this article helpful, don't hesitate to hit the share button and spread the knowledge!


About Jermaine Hagan (The Plantsman)

Jermaine Hagan, also known as The Plantsman is the Founder of Flik Eco. Jermaine is the perfect hybrid of personal finance expert and nemophilist. On a mission to make personal finance simple and accessible, Jermaine uses his inside knowledge to help the average Joe, Kwame or Sarah to improve their lives. Before founding Flik Eco, Jermaine managed teams across several large financial companies, including Equifax, Admiral Plc, New Wave Capital & HSBC. He has been featured in several large publications including BBC, The Guardian & The Times.

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