Build Business Credit With A Business Credit Card

Build Business Credit With A Business Credit Card

Business credit cards are very similar to personal credit cards. The only difference is in how you use them. If you are a business owner, you have no doubt been inundated with credit card offers from the moment you hung up your proverbial shingle. Finding the right business credit card for your needs is simple if you follow a few basic steps.

The vast majority of the credit card offers you are receiving are based on your personal credit. These types of cards will have your personal name on them. This means that this business credit card account will be listed on your personal credit report. This also means that you will be unable to build credit for your business under this type of scenario.

It is best to look for a credit card for your business that will be linked to your business only. This is normally only possible if you have a LLC (limited liability corporation) that separates your personal finances from your business finances.

If you cannot obtain a credit card solely for your business, you do have another option. You will need to find out which credit reporting agencies will be notified of your new business account. Personal credit cards are reported to Experian, TransUnion and Equifax. Business accounts are reported to Equifax Business, Business Credit USA, Experian Business and Dunn and Bradstreet. If your new business card will be reported to any of these agencies, then you know you will be building a credit history for your business.