When you’re laying the groundwork for your new business, you might wonder about the potential of business credit cards and the process of acquiring one to help you with start-up costs and building credit for your company. For many small businesses that are just starting out, they haven’t the credit to be applicable for the larger business cards, but there are options that you can explore that could lead you to the right kind of business credit card.

Before Applying For A Business Card

Before looking into your credit card options, you will want to be sure that you are best possible candidate for securing a credit line. One way to ensure this is to make sure that your own personal credit rating is as good as you can make it. Pay off whatever you can to the credit cards you already possess, because credit card companies will be looking to you for a “personal guarantee” when determining your eligibility, since your business’s credit has not been established yet. Also be sure to register your business with your state, because then you will be more likely to receive a number of credit card offers from companies that deal with the same area as you.

Business Card Options

For the first stage of your new business, there are two types of business cards that you can consider. The first is a secured business card. How this kind of card works is that you deposit a lump sum of money into the account that the secured business card is linked to, and then you are able to use that amount (or possibly more) as credit. The second option is a prepaid business card – like the PEX prepaid Visa card – which enables you to transfer funds from your business checking account to the card and to use that card for your business expenses. You will need to pay a small monthly fee, but a prepaid business credit card can be an effective and convenient way to monitor your business’ expenses and to build up your company’s credit in the interim.

Established Business Credit Card Options

Once you’ve established a line of credit, you can be seen by major credit card companies as a worthy investment, and so might be able to apply for and procure a corporate business card, like the American Express corporate business cards. What makes these kinds of cards appealing is that they often offer rewards programs, and interest fees and rates may be significantly lower. In addition, a “personal guarantee” is usually not necessary for them because the eligibility is based solely on your business.

There are many credit options to look into when starting your new business, but a business credit card can be a wise choice that could significantly aid your company’s success in the long run. With a little time and research, you will be likely to find the right kind of business card for you.