How to Get a Business Credit Card with Bad Personal Credit

Credit scores normally express the creditworthiness of an individual. A particular number of credit scores always dictate the kind of credit card you can apply for. The good thing is that one can still get a credit card if one has bad credit scores. There are credit cards that you can use for your transactions and you can either get a credit card for personal or business uses. I will later show you how to get a business credit card with bad personal credit.

A business credit card is essential when it comes to growing your business. The card allows you to top up your stock or cater for maintenance services when you are not in a good financial position. The card saves you from the mayhem of filing papers for business loans, thus sparing you the hassle of loans from financial companies.

On the other hand, personal credit cards allow you to borrow funds when you have no money left. You can borrow cash advances to buy food, pay for goods and services, among other kinds of transactions. Credit cards require you to repay your debt every month. You have to pay the amount borrowed together with interest. Credit card interest rates differ from one card to another.

What is a credit card?

A credit card is a payment card that allows you to borrow money from your card issuer. There are secured and unsecured credit cards. Secured credit cards require one to deposit money and borrow against it. On the other hand, unsecured credit cards allow you to borrow money beyond your credit limits.

Credit cards are slightly different from debit cards in that credit cards allow you to borrow money from your card issuer while debit cards allow you to spend what you have in your account. Once exhausted, you have to top up to continue enjoying the services. However, some debit card accounts can give you overdrafts if you have a good relationship with your bank.

Which factors should you check when getting a credit card?

business credit card with bad personal credit

Credit cards come with various aspects that you should check. That way, you can get the best credit card that suits your needs. The following are the factors to check when applying for a credit card.

i) Interest rates

If you are applying for a credit card, make sure you check on interest rates. The rates dictate what you should pay at the end of the month once you borrow from the card. The truth is that credit card debt is like a loan that you have to repay with some money interest.

ii) Monthly fees

Apart from the interest rates, credit cards may also charge monthly fees. Not all credit cards charge monthly fees, and if you are keen enough to look for the best card, you will succeed in your endeavors to get a new credit card without monthly fees.

iii) Annual fees

Some credit cards charge annual fees whereby you have to pay a particular amount of money every year to continue using the card. If you get a credit card without annual fees, the better.

iv) Inactivity fees

Credit card issuers usually charge inactivity fees. You need to check the fees you have to pay if your card stays inactive for long. However, it is advisable to keep your card active all the time.

v) Rewards

It is wise to get a card that offers rewards. These include cash backs, miles, and points. That way, you will get something back. Even though such cards are rare, you can still get one.

How to get a business credit card with bad personal credit

If you mess up when repaying your credit card debt, then you end up with bad credit scores. Some of the things that lead to bad credit include late payment, defaulted loans, too much credit utilization, among others.

If you have bad credit scores, you can still get a bad credit card. Various financial companies allow you to get a credit card if you have bad credit. The first option is to get and build credit with a secured credit card that is easy to get. You only need to deposit an amount in your card account to borrow against it.

Secured credit cards are also suitable for people with no credit history. You only need to deposit the right amount of money in your account and borrow against it.

If you want a credit card for bad credit, you can find one for bad credit scores. However, such credit cards come with hefty fees that will generally result in a high payment amount.

You can apply to get a credit card online or at a physical store. You have to deposit funds in your card account for the secured one, then get the card to activate. You can also apply at a physical branch and get one.

How long can it take to build my credit scores?

The duration taken to build your credit scores varies from one person to another. You cannot build credit scores within a day. It takes several months to build your credit card to a substantial number of scores.

It can take around six months for a significant credit score. However, you may put in a lot of effort and add scores within a short time.

How to grow credit scores

There are various ways to increase your credit scores to get the most suitable ones quickly. They include the following.

1) Open many credit accounts

If you open many credit accounts, you will be in an excellent position to increase your scores significantly. Credit issuers will independently report your credit union accounts, thus leading to a big boost of your credit scores.

2) Mix your credits

You can take various kinds of credits to mix them for a better credit score listing. You can take auto loans, credit cards, mortgage loans, and personal loans, among others, to mix your credit. When you mix your credit and pay the debts on time, your scores increase significantly.

3) Pay all your debts

Make sure you clear all the existing debts for your cards. But can you pay a credit card bill with another credit card? Well, it is possible to pay such debt with another card and avoid late payment penalties. Your scores eventually go up.

4) Involve a credit repair company

Credit repair companies help to follow up on your credit scores with the credit bureaus. Credit repair companies charge some fees for the service you get.

5) Keep your accounts active.

You should never close your accounts as your credit history also contributes significantly to your credit scores.

6) Become an authorized user

You can become an authorized beneficiary of someone’s credit card and improve your scores. The person may be your relative or friend. In the process, you can register high credit scores

7) Dispute any errors in your report

Your report might be having some errors that may have led to your poor scoring. If you follow up to remove the errors, then you can improve your credit scores.

Who calculates credit scores?

Credit bureaus calculate credit scores. These are agencies entrusted by the government to keep credit records of borrowers. We have three main credit bureaus. They include Experian, TransUnion, and Equifax. The bureaus calculate their scores independently, thus making sure that you can compare the reports and see whether all information is correct.

Credit bureaus use various pieces of information whereby each piece contributes to a certain percentage of the overall credit scores. For instance, your payment history contributes up to 35%, the amount owed carries 30%, while the length of your credit carries 15%. The credit mix contributes 10%, and new credit carries up to 10%.

How do I get my credit scores?

You can get your credit scores online from the credit bureaus. Each credit bureau requires you to open an account online with any credit bureaus to find their scores. When your account becomes active, you can then purchase the scores as they are not free.

Also, you can get your credit report from the credit bureaus for free. Every American citizen is entitled to a free credit report from each credit bureau once every year.

Alternatively, you can get credit scores for free at your card issuer’s website when logged in. You can also get your free scores from Credit Karma.

Does the credit report have credit scores?

Your credit report does not come with credit scores. As I mentioned earlier, you have to purchase the scores or even get them for free from your card issuer. For the report, you can get it for free. It contains your details such as the amount borrowed, the amount defaulted, and any other relevant information.

 Which credit cards are for bad credit?

Various credit cards are applicable for bad credit scores. These can be secured or unsecured credit cards. The question, which credit card I can get with bad credit is now answered. The following are credit cards for bad credit.

  • Discover it® Secured Credit Card,
  • Bank of America Customized Cash Rewards Secured Credit Card
  • Petal® Visa® Credit Card
  • BankAmericard® Secured credit card *
  • Avant Credit Card

Bottom line

Credit scores refer to a person’s creditworthiness, and you can grow your credit scores with time by utilizing your credit card correctly. There are credit cards for personal use and others for business purposes. Credit bureaus calculate credit scores and you can get credit scores online from the credit bureaus for a fee or check from your credit card issuer for free.