Why Should You Use BusinessFinancingHub to Apply for Personal Financing Online?
At Business Financing Hub you can compare different personal credit card options. Comparing personal cards before you apply will help you pick the one that is the most suitable for you. Our website platform is designed to educate you what options are available and how they work so you can make the best decision based on your personal needs. Applying for the wrong personal credit card can be a headache in the long run. At Business Financing Hub, we help you avoid that.
How to Get Approved for Personal Credit Cards
Getting approved for personal cards depends on your credit worthiness. A credit card company or lender will check your personal credit history to determine your credit worthiness. Depending on the card you are applying for you may or may not need a well-established credit history. For example, the Capital ONE QuicksilverOne Cash Rewards Credit Card (mentioned above) doesn’t require you to have a well-established personal credit history to get approved. This card can work well for people who want to build their personal credit history (using personal credit cards) so they can qualify for business cards in the future (to finance their business).
Even though you don’t need a well-established credit history to get this card, a decent personal credit history is still required for credit approval. The best way to get approved for personal credit cards is to avoid making a late payment (on any of your credit accounts) or not making payments at all. Late payments (or no payments) lead to your credit accounts becoming delinquent. Those delinquent accounts become derogatory accounts. One derogatory account can cause your personal credit card financing application to be denied.
Should I Use Personal Credit Cards Financing Services to Finance My Small Business?
In short, personal credit cards should be used to pay for personal expenses only. Your personal and business credit history should be kept separate. In the world of small business, too many of us fail to keep our personal and business credit history separate. We end up using personal cards to cover the costs associated our small business. This can negatively impact us in the long run if we are properly managing our credit. Small business expenses should be paid only with business credit cards (if you plan on using this type of capital to fund your company). Here are four reasons why you shouldn’t use personal cards to fund your small business:
- It Could Ruin Your Personal Credit History – Using personal cards to fund your business could damage your personal credit history. For example, if you have $10,000 in personal cards and you use more than $3,000, you have reach your maximum utilization. Maximum utilization is 30% of the total amount of your credit card limit. Even if you have $7,000 available on a $10,000 card, lenders and credit card issuers view your personal cards as “maxed out” once you have utilized 30% of your total available credit limit. Once your total revolving debt utilization reaches 30%, your personal credit score will start to drop. (These cards are considered revolving debt). This is how using personal cards to cover your small business expenses can negatively impact your personal credit score.
- Tax Write Offs Get Tricky – When you use personal cards to finance your business, you can only write off the interest on the business purchases you make. When a personal credit card is used for business and personal expenses, separating the purchases and calculating the interest can be daunting. A much easier and more efficient way to handle this would be to use a card for business purchases only. A business card is ideal.
- Cash Back Credit Card Rewards are Limited – Cash back rewards work like this… credit card issuers give you a percentage of your money back for purchases you make using the card. Personal credit cards and cards for business usually offer some type of cash back rewards. However, you may get more cash back rewards with business cards (when making business purchases) than you would when using personal cards (for business purchases). Furthermore, business cards that come with a cash back rewards program may also enable you to save on business travel expenses, marketing and advertising expenses, and other business specific purchases.
- You Can’t Build a Business Credit History – Using personal cards on business expenses will not help you build a business credit history. Business credit is becoming more important in the lending world. More banks and lenders are checking both the personal and business credit history of the business owner(s). I recommend using your personal credit cards to build your credit history so you can qualify for business credit card financing services in the future. In fact, unless you build your credit history using personal cards, you will never be able to qualify for business cards.
Apply for Personal Credit Card Financing Online
Now that you understand how using personal credit cards to pay for business expenses can negatively impact you and your personal credit history, I recommend that you apply for personal credit card financing online using BusinessFinancingHub’s personal credit card financing services. This is primarily suggested if you plan on using them to build your personal credit history so you can qualify for business credit cards in the future. After you’ve built you personal credit history, you can always come back to BusinessFinancingHub to use our business credit card financing services to get capital for your business. Below is one of the top personal cards that you can apply for to start building your personal credit history. Whether you have a limited credit history or an average personal credit score, you can submit an application for this card.