Business Secured Credit Cards
To be approved for business secured credit cards there are several requirements owners have to meet. However, for the legitimate applicant, secured lines of credit offer excellent rewards, cash back bonuses, and comparatively low interest rates.
Who Can Apply
Businesses are the biggest beneficiaries of these versatile HIGH LIMIT CREDIT CARDS, which can be set up to coordinate with existing bank accounts. To accommodate multiple users, owners can specify additional cardholders. Each cardholder will have to furnish personal information, which may extend to personal credit history and earnings data.
Common details include social security numbers of authorized users, legal name of company and tax identification number, legal address and contact numbers. Financial institutions require specific data regarding the company’s annual sales or individual’s gross annual earnings as well. These details determine how much credit the borrower will have access to, and the appropriate interest rate.
Because banks market these accounts toward businesses and associates employed by them, corporate and residential information is required to be approved. In addition to the items noted above, the applicant may need to show the legal structure and formation of the company, and type of industry they are involved in. For associates, monthly recurring payments are considered when determining eligibility for use.
The strict application process ensures the recipients of these cards are not a risk for the lender, and those who qualify receive multiple benefits. A business account will allow tracking of related expenses, provide overdraft protection and and can be integrated with financial management software. Companies with rewards cards will receive bonuses in the form of travel points, accommodations, and cash back incentives every time they use it.
The spending limit tends to be higher as well, although it varies according to credit history, gross income and monthly obligations. It is not uncommon for a corporate account to have a limit of $25,000 and more with 0% introductory interest rates. While any company can offer their customers high spending caps, corporate credit lines often come with insurance and purchase protection.
One large creditor gives their customers $100,000 of coverage to cover accidents during travel and rental car damage or theft. In addition, they automatically double a manufacturer’s warranty on any applicable purchases by as much as one year. Each issuing bank or institution has a catalog of rewards and discounts for their cardholders, which can include specials on dining, hotels, or entertainment.
Practical day-to-day use is an important benefit also. When comparing features, test out the company’s customer service for efficiency, friendliness, and accessibility. Does it take a couple of minutes to reach a representative or half an hour? Another consideration is having easy access to cash; find out how many ATM’s are accessible with the card.
When applying for a secured business credit card, similar to a title loan without a job, compare several lenders for the best interest rates and features. To speed up the process, like car title loans with no inspection, prepare all reference materials ahead of time and clarify any ambiguous application details with a customer service representative. Shop the details of each creditor’s offers and be sure the interest rate, rewards, and spending limits are right for the needs of the business.