Secured Business Credit Card For People With Bad Credit

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Getting a secured business credit card for people with bad credit is a great way to help establish credit in your company's name.

Most secured credit card companies require a deposit equal to the credit line your are seeking. Make sure they report your payment monthly to the major credit bureaus. Making your payments on time monthly will increase your business credit rating. You will also get you deposit returned to you after one year, turning your secured credit card into a unsecured credit card.


There are steps you should take before trying to obtain a secured business credit card with bad credit. First, incorporate your business and obtain a EIN number (This will protect your business from your personal creditors by separating your business credit from your own credit rating). Second, open up a business checking account. Third, established small business owners should first know if they have a business credit file with D&B. You can find this out by calling D&B Customer Service at 1-866-785-0430 or visiting http://iupdate.dnb.com/iUpdate/mainlaunchpage.htm. If you don’t have a business credit file, establish one by applying for a D-U-N-S number. Small businesses should apply for a D-U-N-S number, a unique business identification number, as soon as they start their enterprise to start the process of creating a business credit file. If, when you call or visit the D&B web site, you determine that you already have a business credit file, review it completely to understand what information it contains. Add or modify the information as necessary to ensure that those looking at your business credit (such as vendors, suppliers and financial institutions) are making decisions based on complete and accurate information.

In order to improve your commercial credit scores and build a positive payment history, the most important thing to do is pay your bills on time. Be very careful not to overextend your business, and use any line of credit judiciously. While payment behavior is important, credit ratings are based on multiple factors. D&B, for example, maintains 150 factors that go into a credit rating, such as industry, revenues and number of employees. You should keep your credit file current and accurate, reflecting changes such as location, number of employees, outstanding suits/liens and revenue - all of which impact your credit rating.

When starting up, many small businesses use their personal credit and finances to get their business going, but they should establish a credit history by putting expenses (such as a business phone line) in their business name.

Once you have established your corporation and have opened up a business checking account with it's own EIN number, ask your bank if they will issue you a secured business credit card to help you establish your business credit rating.

Please note that we currently could not find any secured business credit card issuers at the time this article was written. If you are a issuer or are aware of any companies that issue secured credit cards to businesses, please let us know so we can keep our readers informed by emailing us at help@consumerbadcreditguide.com.