Christie Matherne, Credit Card Writer
@christie_matherne
All secured business credit cards can build credit fast if you always pay the bill on time and keep your credit utilization low. There are two types of credit that a secured business credit card could build, however, and it may not address both equally. Secured business cards can help build business credit, but they don’t all build personal credit.
What You Should Know About Secured Business Credit Cards
Much like unsecured business credit cards, each secured business card issuer will have their own consumer credit reporting practices. Some may not report to consumer agencies at all. So, business owners looking to rebuild damaged personal credit may want to consider a consumer secured credit card. They work just as well to separate business expenses from personal expenses. Plus, they all report to consumer credit bureaus; and there are far more consumer secured cards available than business ones.
It’s also important to remember that business credit scores aren’t built the same way as personal credit scores. Building a business credit score may require more effort, and business credit scores don’t matter nearly as much as personal credit scores when it comes to securing business funding or credit cards. So, secured business credit cards can generally help build business credit, but that isn’t always as helpful as you might think.
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People also ask
How long does it take to build credit with a secured credit card?
You can start building credit with a secured credit card in as little as one to six months, but it can take many months or even years to build a consistently good or excellent credit score. The length of time also depends on whether you’re building credit from nothing or rebuilding damaged credit.
Providing an accurate estimate of how long it takes to build credit with a secured credit card can be challenging without considering individual...
read full answer by WalletHub, Financial CompanyCan you be denied for a secured credit card?
Yes, you can be denied for a secured credit card if you don’t meet the issuer’s minimum requirements, which typically include being at least 18 years old and having a U.S. address, a Social Security Number (SSN), and enough income to pay the bills. You could also be denied if you have major negative items on your credit report, such as a bankruptcy.
Other common reasons you’d be denied for a secured card might be incomplete...
read full answer by Chip Lupo, Credit Card WriterDid we answer your question?
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