Instant Approval Business Credit Cards for Entrepreneurs

The rise in applications for instant approval business credit cards has led to a dramatic increase in credit card use among small business owners according to the 2009 Small Business Credit Card Survey.

Since April, TARP’s top recipients cut their small business loan balances by $ 8 billion. While traditional loans have dried up and lines of credit have been cut, banks have decided to funnel more small business loans with business credit cards.

Despite some leading credit card companies like Advanta going out of the card business entirely, it’s refreshing to see banks like JP Morgan Chase card services launch four cards more specifically targeting small business owners. As these instant approval credit card offers enter the market to compete for your business, it is important that you consider all business credit card options and weigh the costs against the benefits before applying.

Here are just a few to keep in mind:

• Cash Back – Many cards now offer cash back rewards. For example, the new InkSM Cash from Chase has unlimited cash back and accelerated earnings on your card. This is a huge bonus because it rewards you for spending on the daily business purchases you already make. Make sure you understand what the card’s limitations are and read the fine print before applying.
• Frequent Flyer Mileage – Getting frequent flyer cards or airline miles is a very popular benefit for business travelers. Once you accumulate enough points, you can redeem them for airline discounts or free nights at participating hotels. Make sure you know if there are any limitations before applying.
• No Annual Fees – Many cards now waive annual fees. Keep in mind that your credit score must be strong to get these types of cards. However, if your business pays your balance in full every month, this is definitely the way to go, if you can. In effect, if you pay off your balances, you get the card for free.
• Zero Percent Balance Transfers – This can help you reduce your high-interest debt. Make sure you never miss a payment or you will immediately lose your interest-free terms and have to pay the full fee.
• Payment reporting: Traditionally, most of the easily approved business credit cards on the market report your payment history and revolving debt to your personal credit files and not to the business office.

However, some companies have begun to adapt to the new world of business cards such as CSI MasterCard, JP Morgan Chase and American Express. They understand that it should be used for business purchases and that any debt owed should only be reported to business credit reports, not their own. When you request instant approval credit card offers, they verify your personal credit report, but your payment history and debt report to the business office. This is what every small business owner like you should demand of a business credit card.

A major problem is that if your accounts become delinquent, these companies will also report the delinquency to their consumer credit bureaus.

Finally, keeping responsibility strictly tied to your business can be accomplished without personally guaranteed business credit cards. There are fewer than forty of these types of cards available and you will need to have a strong business record to qualify.

With the growth of business offices, data providers and business archives across the country, more and more businesses will have to meet an ever-increasing demand for new cards that will need to keep up with the needs of small business owners. companies today.

I encourage you to choose the cards that best suit your business needs while supporting the growth of your business credit file and limiting personal liability.