How to Qualify for a Business Credit Card

A business credit card can help you secure a stable cash flow, maintain a record, build a good credit score and break up the costs. Regardless of the size of your business, a business credit card will take care of the short-term expenses of your firm. If you want to apply for a business credit card, there are a few things that you need to consider to qualify for a good card.

  • Registered Business Details and Years Active

Having a registered business improves the credibility of your application. Provide your company’s legal name and the associated set-up, i.e., PVT.Ltd or Ltd. This increases your chances of obtaining good business credit cards.

The number of years your business has is also an essential factor. It is easier to check the expense records of companies that have been running for a while. A stable business with a decent credit history will ensure that your application gets approved. 

  • Industry Type

While you apply for a business credit card, you need to state the specific type of industry your business belongs to. It helps the bank decide the credit line. In addition, the credit card issuers research the risks associated with your industry type and other logistics. Credit requirements for seasonal business are not the same as all-year long trades and vice-versa.

  • Business structure and number of employees

To qualify for a business credit card, you need to provide details about your business structure. For example, in case you have a sole proprietorship, mention your name only. However, if your business is registered as a partnership or a corporation, you need to provide information about the co-owners.

The number of employees you manage needs to be mentioned during the application. Many credit card issuers offer more than one business credit card from a single account for employees.

  • Business Revenue and Monthly Expenditure

It is imperative to provide the annual revenue records of your business and estimated monthly expenditure while you apply for a business credit card. The greater the annual revenue is, the better is the chances of your application getting approved. In addition to that, the issuers use this information to decide the size of your credit line.

  • Personal Income

 The credit limit of the card and other charges vary from bank to bank. It also depends on your financial history. Banks look into your personal income history and any debts that you may have. Maintaining a sound personal financial record is essential, especially if you don’t have an annual business revenue record.

  • Personal Credit Score

In addition to checking your company’s credit score, the card issuers go through your credit records as well to see your repayment behavior. The way you handle debts helps them decide whether you are eligible for a business credit card. Thus it is crucial to have a good credit score when you apply for a business credit card.

  • Personal Guarantee

You are required to sign a personal guarantee that holds you legally liable to repay the bill. This puts your own money and assets in line. If your business fails to raise the amount required to pay the bills in time, the issuer will have the right to liquefy your assets to recoup the debt.

Ensure that you choose cards that will give you sign-up bonuses, reward points, cashback benefits, affordable interest charges and a sufficient credit limit. Applying for too many cards and getting rejected often reflect negatively on your credentials. Hence build a strong profile and verify your details before you apply for a business credit card to qualify with ease.

If you are looking forward to applying for a business credit card, check out the Bajaj Finserv RBL Bank SuperCard. It serves as a credit card, debit card, loan card, and EMI Network Card too. With this card, you can get several benefits such as a 50-day free period, reward points on domestic and international expenses, cashback, and affordable interest rates.

Murtaza Ali

Murtaza Ali is a tech enthusiast and freelance writer with a passion for all things digital. With 5 years of experience in the tech industry, He has a deep understanding of the latest trends, innovations, and best practices. He loves sharing his knowledge and insights with others, and has written extensively on topics such as [Ai, cybersecurity, cloud computing, programming languages, etc. When he's not writing or tinkering with gadgets, he can be found exploring the great outdoors, practicing cricket, or experimenting with new recipes in the kitchen. He believes in the power of technology to improve people's lives and is excited to be part of an industry that is constantly pushing boundaries and breaking new ground.
Back to top button
%d bloggers like this: