What to Consider When Applying for a Business Credit Card

By now you know how critical a steady cash flow is to the success of your small business. During slow seasons you may be looking for ways to supplement your income with help from outside resources such as business loans, lines of credit or business credit cards.

A business credit card is an excellent option as it helps to build your business’ credit history with no minimum time and keeps your business and personal expenses separate. Here are a few things to consider when searching for a business credit card:

1. Know your options: Just like business loans, there are a variety of business credit cards available to small business owners. A card may offer great introductory rates but come with certain restrictions that limit your use. Do your research and read the fine print before you apply so you can be sure it’s the right card for you.

Derrick Bailey
Derrick Bailey

2. Be selective: Just as applying for many different personal credit cards can negatively affect your personal credit, excessively applying for business credit cards can hurt your business’ credit. It raises red flags with creditors, making it more difficult for you to get funding in the future. If you are declined from one card, speak to your financial advisor to find ways you can improve how your business is perceived by lenders before applying for another.

3. Choose a card that builds your company’s credit: Be sure to look for a credit card that reports your payment experience to a business credit bureau, as this will protect your personal credit in the event you forget or are unable to make a monthly payment. Additionally, building credit history for your business can lead to benefits such as higher credit scores and better payment terms.

Telhio offers a variety of VISA business credit cards with features like high limits, zero percent balance transfers and cash-back rewards to fit the needs of your business. For more tips, resources or guidance on navigating small business success, contact a member of Telhio’s business services team online, or give them a call at (614) 221-3233.

For more considerations on applying for a business credit card, read “Why Should You Apply for a Business Credit Card?” on the Small Business Administration’s blog.

Telhio is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking, Marion, Pickaway and Union counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers – branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
*Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.