The Truth Behind Business Credit Cards
Hello Everybody! Marco Carbajo here! I think I will share with you the truth behind business credit cards. And for those of you out there as business owners, entrepreneurs, looking to get your first business credit card, there are 3 things I must share with you. They are very important. They are usually completely aware of while looking at their applications, but what matters is the fine print. There are 3 different types of business credit card applications.
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The first one I am going to tell you is called the business credit card 1 of the year, and the reason being is many companies are there claiming they have a business credit card, but there is nothing more than a modified personal credit card, and the reason why is if you look at the application, it asks, of course, for your business name, they ask for your personal name, they ask your social security number which you guarantee in their card, puts together the terms and conditions, and you also need to look at the disclosures because what happens is, that particular business card is solely reported on your personal credit. You are personally liable for it, and it affects your personal debt to credit number ratio, so are less being used for business credit card. It is all tied to your personal credit, which in my opinion is not a real business credit card.
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The different and second type of application is to me the business credit card folder, and this is my opinion of coming closer to the real business credit card, but the reason why it is not is because you still have to personally guarantee it. So in these particular applications, what you need to look out for is it does ask for your business name, it does ask for your Federal Tax id number, and also asks for your social security number, because you have to personally guarantee that particular card. The next thing about this is this particular card now does report your payment history to your business credit file only. The only drawback in these types of business credit cards is, if unfortunately your business falls, you are still personally liable for the debt on that personal credit card or that business credit card. So that is the second type of business credit card application out there.
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The third is the real deal business credit card. These are the business credit card applications where you literally plan for strictly on your business, strictly on your Federal Tax id number, so therefore your business credit reports do approve your business for business credit card strictly with no personal guarantee, and there are only about 40 credit card companies in the country that offer this type of business credit card. There are over 500 business credit cards in the country right now, and less than 70 of them report your business credit profile, so you have to be very careful on where you are planning for your business credit card application.
So with that, start booking your business credit today, and make a great day with stocks you have invested in. Bye bye!