How to Build Business Credit Cards
As a business owner, its important to build your credit and obtain credit cards in order to protect your personal credit. Establishing separate business credit will protect your own personal credit history from being negatively impacted by any financial mishaps involved with the business.
- Register your business as a legal entity. Completing this step will separate your business credit from your personal credit. In order to complete this step you can choose from several registration options including doing it on your own or the more favorable option of working with a business attorney.
- Contact the Internal Revenue Service about obtaining a Tax ID number. This number will serve as an identification number for most financial transactions. Additionally, you'll need to establish a DUNS number to establish a Duns & Bradstreet business credit file. This file will help to keep track of your business financial history.
- Get a small-business credit card such as those available at hardware, department and supply stores. These types of cards are generally easier to apply for when compared to more traditional credit card options. Make several small purchases on the card and ensure that you pay them off in entirety by the next billing cycle.
- Next, apply for a gas card. These are slightly harder to obtain than store based cards because they require established credit. Just as with the store card, make several purchases that you promptly pay off.
- After several months of keeping your store based card and gas card in good standing, apply for a major credit card. Provided your accounts have remained in good standing you should easily be approved for the credit card.