Secured Credit Cards Will Help Your Credit Rating

Secured Credit Cards Will Help Your Credit Rating

by Bart Forcey

Secured company credit cards are a great way to establish a solid credit score, and establish the way for a higher, unsecured line of credit and a greater chance of loan approval in the future. A secured card simply means that your company has opened a savings account and made a deposit that is used as security for your credit card. Usually, your credit limit on the card will be exactly the same as the money you deposited in the savings account. Your savings account is a pledge of payment for the lender.

As with anything there are a few drawbacks to having a secured card. They usually tend to have increased interest rates, and a few have an annual fee or need you to pay an application fee. Nevertheless, they also hold plenty of advantages for a new small company that make the upfront costs effectively a saving. A lot of secured commercial credit cards offer the same features as unsecured cards, for example travel insurance, theft and damage coverage, unauthorized transaction protection, overdraft protection and extended warranties on anything you purchase.

submit an application for a secured business credit card, be certain that you look at quite a few. Some will probably proffer a higher credit limit or a lower interest rate than others, so it is imperative that you do some inquiries to ensure you get the best card for your business.

But whichever card you decide on, a secured corporate credit card will help your new small business on the path to a improved credit score.

Dealing with the choice of credit cards as you would with any other business decision so you get the best deal possible for your business is essential. Your company credit score can really assist or harm your company so it is vital that you take time to make informed choices.