Do you know what business credit card – no personal guarantee means? The concept of a business card with no personal guarantee has to do with applying for and being approved for a business card without having the business credit history that most business credit cards require for approval. This requirement can be daunting when it comes to business card applications, because if you cannot personally guarantee your application for your business card by proving that you have personal good credit or good business credit, then you may have difficulty getting the credit help that you need, preventing your business from getting the funding that your company requires. The chances of obtaining a new business card was once slim to nothing if you were not able to personally guarantee your credit, but things have changed now that you can obtain business cards with no personal guarantee.
There are a few things that you will be able to do regarding finding a business card even if you do not have much of a personal credit record to speak of. First and foremost, you should make a point to get your business registered with all of the credit reporting bureaus such as Dun and Bradstreet. While you are automatically reported to personal consumer credit bureaus, the same is not true when it comes to businesses and the accompanying credit bureaus. Dun & Bradstreet does for businesses what Experian, Equifax and Trans Union do for consumers.
Since you are just getting into the industry, and because your business has a direct link to your personal credit until you can build up your business credit, it is absolutely vital that you keep your personal credit in good shape. There are credit opportunities out there that offer business card no personal guarantee offers. Since you are new to the industry, if you can find one of these offers, it will likely benefit you quite significantly, but only if you make sure to read the fine print in order to make sure that you understand what the card has in store for you.
One of the best ways to get a business card without requiring a personal guarantee is to work with the bank that you are already doing business with when asking for a credit card. Keep in mind, however, that any new business cards that you get will probably come equipped with higher interest rates because businesses without any credit are risky borrowers. If this is the case, just worry about getting a modest credit line until you can build up some credit. When you cannot personally back or personally guarantee your credit, then you will need to make small sacrifices for the purpose of getting the business credit that you need, even if it does mean larger interest rates and smaller limits until the point where you can back up your credit worthiness when dealing with a lender.