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Own a Business? You Need Card for Business Credit History
You have, probably, heard 50 million times about the importance of your credit history and how your credit score affects your financial standing. But what about business owners? Do they need to establish business credit history and how can it influence the success of their business?
Business credit history does exist and it has to be established. It reminds personal credit history by content and importance. Just like personal credit history, business credit history is an indicator of an owner's financial wellbeing. Business owners have separate business credit reports that consist of pretty much the same components as a regular credit report.
How to Establish Business Credit History
If you are a business owner, it will be no news for you that business credit cards are a great tool that helps in your company's financial management. And when you get a credit card for business, you automatically start building your business credit history. If you make your credit card payments on time, if you avoid going over your credit limit, and follow other rules of wise credit card management, you will build a strong business credit.
Another way to establish your business credit is through applying for a tax ID number. You can also apply for a D-U-N-S number from D&B (Dun&Bradstreet). It is a credit bureau that offers its services specifically for businesses. Among the three major U.S. credit reporting agencies known to credit card holders - Equifax, Experian and TransUnion - Experian caters for both, businesses and individuals.
Why You Need Business Credit
If you own a business, you perfectly know the financial expenditure that a business involves. And getting a credit is often the only way out to keep the company afloat. That is where your business credit history really matters. Your potential insurers, investors, and lenders will check your business credit in order to make a credit decision. So, it is in your best interests to build a solid business credit to prove creditors that you are creditworthy and reliable.
Establishing and maintaining excellent business credit will allow you to qualify for the best business credit card with most favorable terms, and get any loans you need.
Business Credit Report
So, what kind of information your business credit report contains? The date of establishing your credit. With this date your potential creditor will always be able to figure out the length of your business credit. This length affects your business credit score. Of course, it is better to have business credit for a longer time. Credit card companies prefer businesses with strong credit. Just as you do your best to improve your credit score, you should constantly work on your business credit as well.
What else is reflected on your business credit file? It is general info about your company: the number of employees, company's legal address, the type of your business, average annual income, and so on. And all the information concerning the types of business accounts, your loans and debts, payment history, and other facts that you can find on a regular personal credit report.
And remember to check your business credit report on a regular basis. This way you will be protected from possible mistakes in it.
ARTICLES about Credit Cards | >> View all Articles
American Express Travel
October 24, 2008
American Express continues to please its loyal customers with exclusive card offers for frequent travel rewards. Its latest product, co-branded with Delta Airlines, comes with a catchy "Delta Reserve Credit Card" name and aims at wealthy and creditworthy customers looking for incomparable travel experience. It cannot be referred to as a cheapest deal among the rewards type, but the price for the outstanding benefits and additional programs is more than acceptable.
The $450 annual fee and a competitive APR on purchases and balance transfers are charged for the exclusive access to the 24-hour Concierge Service, SkyMiles account rewards program and extended credit line. If you think you can find something better online, take a minute to read further and ascertain that American Express has not been overtopped.
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Pre Approved Credit
October 07, 2008
If you hold a valid FICO score with at least one national credit reporting agency, you are very likely to receive a pre approved bank card offer in the mail. But among the 3% of recipients completing and returning the application, only some 1.5% if not less actually get approved. Why is that and what are you required of to qualify for that enticing card offer sent by a major bank?
Most people think if they've been pre approved, there will be no hassle going through the formality of the application process. Now they don't have to spend hours searching and comparing products online to find the only right variant. Hardly anyone knows how the bank chooses a potential customer and what eligibility requirements it will use to finally approve or reject your application.
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Credit Cards at College
September 26, 2008
Though a standard unsecured student credit card is available to high schoolers nowadays, it is at college that young people make their first financial decision independently from parents. The first responsibility comes with the need to choose the right plastic from a great spectrum of equally attractive offers.
Student offers are normally spiced with various bonuses, advantageous features and striking rewards which often drive the youngster into impulsive application decisions. The hassle or negative consequences of choosing a card would be avoided if a student knew the basic points to look at when doing a search.
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