ForumsFinancing Tips

If it's a new business and you're the sole owner/officer, your personal credit is going to be the biggest factor in deciding the terms and credit limit you initially receive on a business credit card from a bank. You probably won't have to provide any more info about the business than you would when opening a business checking account, but you will likely have to provide your SSN and personal guarantee (that if the business doesn't pay its bills, they can come after you for the money).

elochka,

Your personal credit will be the driver of your credit limit. In addition, many credit companies use one year in business as a credit criteria so you may get declined or at least have a higher score cut off.

While on average business credit cards may actually give you a higher limit, this is often dependent on your business credit score being there. As a start up, your business may not have a track record.

All that said, getting a business credit card is a great idea because

a) You start building a credit history for your business
b) You separate business and personal expenses and make accounting easier
c) Many cards offer administrative features to make tracking and adminsitrative stuff easier
d) You get rewards for all your business spend

Have worked in the business credit card industry for many years so if you want more advice, feel free to reach out to Vish.Sastry@smallbizexpress.com- can definitely recommend a card that works with you based on what you are looking for.