A business credit card provides distinct advantages. It not only separates corporate and personal expenses, but it also provides several bonuses that personal credit cards don’t always allow. The following are five factors that help determine if you will qualify for a business card like Amex https://www.americanexpress.com/india/. This approval marks a major step in getting your company off the ground.
One - Personal Credit Ratings:
It helps to check your personal credit rating before applying. Often this individual information is included in the evaluation. Although the employer ID number is likely to be accessed, a specific person will need to be responsible for the account. While qualifying scores will vary between creditors (most consider a score of at least 700 worthy of receiving a credit line) the rate will depend on your score and creditor criteria.
Two - Financial Business Reports
In addition to your personal information, any existing financial reports should be in good order. Creditors are looking for previous business dealings that demonstrate commitment and responsibility. Outstanding debts, along with credit standings and business potential, will be assessed. The purpose is to establish credit worthiness that will allow your business the advantage of being able to secure instant credit and make sound investments. Additionally, conscientious accounting practices help provide opportunities for credit lines in the future.
Three - Registration and Application:
After registering your business following local regulations, you’re likely to begin receiving credit-card applications by post. It is worthwhile to review guidelines and restrictions, before applying online, for the services best suited to the unique needs of your small business. Once you select a credit company you will fill out and submit the following information: your name, “doing business as…” address of your business, your birthdate, and your employer identification number (EIN). You may also be required to submit a personal ID number. Additionally, you will need to indicate whether the business is a partnership, corporation, or a sole proprietorship.
Four - Personal Income Information:
Personal financial information may be requested when you are just starting out and do not have a previous year’s business income to submit. The decision made by the creditor is usually determined by your personal income statement. If applicable, business specifics and related personal work experience may be requested. Once the information has been supplied you will submit the application as a small business owner, partner, secretary, or treasurer for the corporation, and then you will wait for credit approval.
Five – Avoid Multiple Applications:
While it may seem reasonable, applying to multiple credit card companies may hurt your chances for approval. Numerous inquiries will often create a ‘red flag’ indicating you could be experiencing financial problems. These signals increase the likelihood of having your application rejected, and could potentially decrease your chances for approval at a later date. Research credit card companies and decide which one is best suited to your small business needs. Once you have been approved, you can request cards for other employees in your firm as needed.
Although qualifying for a business credit card requires several factors, once you have received your small business credit card you are likely to receive many great discounts, rebates, and incentives.