Being able to get the most out of a business credit card is an essential part of any business.
With so many options available, it can be a challenge and even intimidating to know which business credit card would work best for your business.
Here are seven tips for getting the best funding on your business credit cards
Personal Credit Basics
Guys, I’ve mentioned why your personal credit is so important and why you want to be in good standing with your banks.
Before you start applying for business credit cards, make sure these things aren’t showing for your personal credit:e basics of personal credit optimization such as
No more than two inquiries in the last six months
No derogatories
No late payments in the last 24 months
Utilization under 10% on each account, no more than 2 personal accounts opened in the last six months
Having one or more of these on your personal credit can result in a denial of your application, so definitely make sure to check this.
Authorized Users
If you still need to take advantage of an authorized user, you should!
This is definitely a path you can take if your personal credit needs to improve in any way. Taking advantage of Authorized Users gives you better control of credit files.
A good AU increases the average age of your credit file are great to be added to. You should make sure you cap the amount of AUs you are listed as two.
With so many options available, it can be a challenge and even intimidating to know which business credit card would work best for your business.
American Express and Citi cards can have issues reporting, so I would prioritize your AUs with Chase and Bank of America.
Credit Line Increase
For American Express, Bank of America, Capital One, Discover, and Citi accounts older than three months with activity, ask for a Credit Line Increase (CLI).
A CLI will raise the roof on how much spending you can use with your card. This gives you more opportunities to spend on the card, whether it’s for inventory or investments.
The banks I mentioned earlier generally only “soft pull” CLIs. You should confirm with your bank before you submit a request. This can be done over the phone.
Location, Location, Location
When you’re applying for a business card online, always make sure you’re doing it from your home address. This will make your IP address matches the address you’re using for your application or you could be suspected of a scam.
Here’s what I mean.
So hypothetically, let’s say you live in Florida but you’re applying for a credit card while on vacation in New York. Even though you’re applying for a credit card with your Florida address, the bank will see that your IP address is in New York, so it will get marked for suspicious activity.
To avoid getting flagged as suspicious, either use a private VPN to make it look like you’re home, or just wait until you get home from vacation.
Employment Status
When you’re filling out an online application, make sure you mark “employed” on the employment status. If you are self-employed, use your company as your business.
It’s a subtle detail, but it will help with your business credit card application.
Income Level
Make sure you can show $5K in liquidity in the bank account for at least a week, if not longer.
This is more of a priority for Grade A banks like Chase, Bank of America, and US Bank. Showing them you have money moving is a good sign you’ll be responsible for your card.
This detail might help at smaller banks, but any card issued by FNBO or Elan, I personally wouldn’t bother with it.
Clear Up The Clutter
Make sure to remove old and inaccurate addresses from your credit report. Ideally, you only have one listed.
Having multiple addresses on your credit report is riskier to the lender as it can look like you move around a lot. This can make it harder for them to track you down if you default on the debt.
Call the bureau and demand they remove “inaccurate” addresses or submit letters as provided in the course.
That’s it. Making sure that you follow these tips will guarantee you’ll be able to apply for business credit cards and get approved. If you want to learn more about business credit, come join our community.