Many small business owners would ask why they should go for an option that stretches their business credit card limit. They might be paying off their bills nicely each month, why step on that steady record, take on more credit and increase the credit card bill? It’s because getting higher credit limit does not mean you need to spend more. Think of the difference between your extended limit and the amount you typically spend on credit as the safety margin.
Now when you want to stretch the limit how do you exactly go about the process? At the time of issuance you had a limit you were satisfied with. Now you need more for your business but would the credit card company think the same?
Below is a collection of the few things that might help you stretch your business credit card limit.
The first step to anything is making it known. There are a few credit card companies that offer you credit increases. What usually occurs is that you need to sign in to their online site and fill out a request for a credit increase. Or look at the backside of your business credit card, there is a number you can ring up and discuss directly with the staff to extend your business credit card limit.
After being issued your Business Credit Card, you should wait for around seven months during which you need to make sure you are paying your bills on time. This will likely suggest to the creditor that if given a credit limit increase you will definitely keep up on paying off your debts every month.
Here is a neat trick: If say your direct request is never entertained, go apply for another business credit card from the same company but with lower credit limit. When you are issued the card, simply resection the credit limit to your old card.
Trust me; you will definitely want to better your chances if you want an extended credit limit the first time around. It is high time you get all the details in order.
If your business is growing and has crossed the breakeven point, make sure you show your tax returns to the company.
Favorably, you could go with explaining the business credit card company how you have already paid your previous dues or loans that you had and it would make sense to offer you a credit limit increase since now you are on the grounds of paying higher credit card bills at the end of every month.
There are a lot of advantages to increasing your business credit card limit. The most important one would be lowering your credit utilization ratio. This means that it improves your credit score and ultimately has an excellent effect on your credit history. Comparative to your credit limit, the less amount you use the higher will be your credit score.