If you are looking forward to get a business credit card, you should be happy to know that the process is as convenient as entering information in an online form. However, getting an approval is the tricky part. You should start long before you apply.
If you are applying for the first time, you must be at least 18 years of age to qualify for a credit card. In case you are under 21, you need to submit information of your assets and independent income to show that you will be able to repay the amount you charge.
Let’s explore how you can get a business credit card.
Good Credit Score
One of the most crucial things to consider when applying for a business credit card is your credit history and credit score. These factors effect a credit card issuer’s decision to reject or approve your application. There may be a little disparity depending on the bank you have chosen. But, most institutions require you to have excellent credit history. In case you don’t possess a good credit history, you should first get your finances in order. A poor credit score and a mediocre history can lead to a rejection of your application.
Take Care Of Your Debt
A good 30% of all credit scores are determined by the amount people owe. We all know how a high credit card balance harms your history and ruin your chances of getting a new credit card. Make sure you have a decent credit utilization ratio, before you apply for a new card.
When facing towering debts, you can lower your credit utilization by formulating a strategy to pay an existing balance, ASAP! Moreover, you should also pay off purchases by making multiple payments in a month for keeping your balances low throughout the month.
Compare All Good Offers
People, who don’t possess good credit, usually find it difficult to get an approval for a card with a big sign-up bonus and a profitable reward system. Every credit card application heavily relies on your credit report. There are plenty of online resources that give you valuable information about all the best offers you can find to get a good credit card. In case you are still uncertain, get in touch with the card issuer to inquire about a specific card’s requirements.
List All Income Sources In Your Application
Your credit score is a fair indicator of your overall creditworthiness. However, lenders must know about one crucial thing: your income. In order to calculate your credit score, issuers must know your income level for calculating the debt-to-income ratio, to evaluate your ability to make regular payments.
In case someone earns money outside their full-time job, you must include it in your application so that an accurate debt-to-income ratio gets reflected. But do not overstate your income. In case an issuer get to know that you have submitted false information on your application, the bank can charge you with fraud, which is punishable and can lead to up to 30 years of imprisonment.
Bottom Line
When you have done everything right but face a rejection, don’t move on just yet. Issuers also have reconsideration lines so you can plead your case. You are also able to check your free credit report at AnnualCreditReport.com for knowing if there are any blemishes on your history. Also, be polite at all times. Customer service agents respond better when you have a positive demeanor.