If you're not familiar
with business credit cards, I suggest reading my post on why business credit cards can help you maintain a good credit score.
Most of us are readily familiar with the general structure of consumer credit, but if you're a small business owner, becoming
familiar with business credit is important to your overall success.
While a business credit card is similar to a line of credit, there are some purchases or payments that can't be
made with a business credit card.
But, due to the highly unregulated nature of business credit it is close too impossible to know how to fix incorrect or delinquent information without first reviewing reports
with a business credit specialist.
The bank can not provide you with the business report due to privacy agreements and if they violate them they can lose their contract
with the business credit bureaus.
In the first few months of 2004, however, external fund raising appears to have moderated,
with business credit contracting slightly after rising rapidly in late 2003.
Because of some benefits and privileges that usually
come with business credit cards, they tend to be more expensive than personal credit cards.
While credit reporting is typically for consumers, there are business credit reporting services we reviewed that are designed to help monitor and alert you of
issues with your business credit score.
But there's one matter you should figure out before you start comparing cards — should you
go with a business credit card or a charge card?
Once you establish your enterprise over several years, you can use the good credit history you've built
with your business credit card to apply for a corporate credit card.
While consumers do not have to take action to create a credit file with the consumer credit reporting agencies, businesses do need to initiate the process of opening a business credit file
with the business credit reporting agencies.
Another way to earn frequent flyer
miles with a business credit card is to obtain an airline - branded card, such as the Delta Business Gold Card from Amex.
Business
owners with no business credit history and limited time in business will only be able to receive a maximum score of 140, and that's only if you have a stellar personal credit history and a financially sound business.