Last Updated on November 16, 2023 by Hina Rubab
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Are you an up-and-coming e-commerce entrepreneur? Chances are you have been thinking about getting yourself a credit card. But what kind would you need for your line of work? And what is the process of getting a credit card?
Here are the different kinds of credit cards that you will be needing and some guidelines on getting one.
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Benefits of Having a Credit Card
Having a credit card is more than just a buy-now-pay-later option. Having a credit card and actually using it to build up a perfect credit score has a lot more perks than one may think. Some of these benefits include:
Most credit cards today have purchase protection. This will ensure your money against fraud damaged purchased items and loss. When it comes to money you should have these kinds of perks that will make you not worry about it.
Credit cards give you advantages and convenience. It might be a hassle for you for keeping track of your cash, this is where the credit card gives the advantage of convenience. You can just bring your card and use it as an alternative to making a purchase.
Having a credit card would also give you membership rewards that could be of good use for future purchases. Cashback credit cards will help you to earn cash from the products that you will spend on. They give back a percentage of the total money you spent or give you reward points in return.
Credit Score and History
Paying your bills from your credit card will give you rewards which include a high credit score. Having a high credit score will give you the benefit of low-cost loans, qualifications for other insurance that is exclusive for high or perfect credit score holders, easy access to utility services use, and other more!
Cash Advance Benefits
Having a credit card will give you the benefit of cash advances. You can get money whenever you need to but take note that this perk will have a high-interest rate so you should create a plan to pay for this kind of transaction.
Loans can be applied with a credit card but this will cost you lower than usual. Since you’re using a credit card you should also be aware and make up a plan for paying the charges you create before the due date. This is very useful whenever you’re planning to make a big purchase but your paycheck is around next week or the following days.
However, credit loans aren’t automatically given to anyone with credit cards. The bank that carries your card would check if you are trustworthy enough. Thus, it is important to have an excellent credit score before you apply for a loan.
In cases where you have a poor credit score, you can still increase it with the help of cheap credit repair services. Such services will double-check your credit reports while allowing you to know how to get an 850 credit score in no time. After your score improved, getting a credit loan will be possible.
Our Top Cards for New E-commerce Entrepreneurs
- The Blue Business Plus Credit Card (American Express)
Credit Score Recommended for this card: Good to Excellent Credit Score (670-850)
- You will be able to earn 2x Membership Reward points with the American Express Blue Business Plus card on every purchase for business purposes, you can purchase $50,000 worth with the multiplier every year. You can also earn 1x on every dollar you spend.
- Purchase protection and extended warranty protection are also included with the card, therefore every purchase you make there will be a guarantee of a refund or repair for every defective product which you can worry less about.
- It is also provided that there will be no employee cards at no additional cost and annual fees. This could make you save a lot from having this benefit.
- There is no annual fee.
- There are no other unique bonus perks
- They charge foreign transaction fees
2. Ink Business Unlimited® Credit Card (Chase)
Credit Score Recommended for this card: Good to Excellent Credit Score (670-850)
- There are rewards which is a limitless 1.5% cashback for every business purchase made. All the rewards you earn from the card have no expiry date
- There is no annual fee
- You can earn unlimited rewards with no limit to the amount you can earn.
- Redeemable rewards from cash back, gift cards, travel, and more.
- There is a 3% foreign transaction fee.
- There is no Cell Phone Protection for this card.
3. The Business Platinum Card (American Express)
Credit Recommended for this card: Good to Excellent Credit Score (670-850)
- You can earn 1.5x points for specific product purchases with your card made at U.S. hardware suppliers, construction suppliers, electronic retailers, software providers, and more.
- You can earn 5x points on flights & prepaid hotels on their booking site @AmexTravel.com
- American Express offers Pay Over Time‡ APR where APR on purchases will be a variable rate, 16.49% – 24.49%, based on your creditworthiness and other factors
- Big annual fee of $695
- Airline fee credit does not cover airfare. This credit will only cover incidentals like checked bags
How to Apply for a New Credit Card
Check Your Credit Score
It is important to have an excellent credit score when applying for a credit card. It has a quantification rating that will measure a person’s possibility of repaying a debt. Aiming for a 670 to 850 credit score is the goal, should have to avail of or earn a credit card.
The minimum allowable credit score to grant you a card will depend on the bank or card issuer. However, if you have a credit score of around 580 or lower, there’s a high chance that your application for a new credit card will be declined. However, you can still improve this by getting help from credit repair services.
Have Your Social Security Number Ready
You have to get your SSN. Therefore you can go to your nearest SSA Office, though you can submit an online application. You’ll be required to gather your personal information documents supporting your status.
Prepare Tax or Employer Identification Number
It is required to have a Tax Identification Number to continue and process a credit card. For availing of a credit card, they will also require you to give your type of residence, Employment status, and Total gross annual income. For some card issuers, it might be different but it is the usual requirement.
If you’re availing of a business credit card and your business is well recognized, you can make use of an employer identification number (EIN). You should always consider that business credit cards might still consider asking for your Social Security Number (SSN) in the process of applying for this application.
Having a credit card will give you advantages and many other benefits. This is the ideal way and hassle-free way of having the convenience of making a purchase, big or small.
But there are precautionary measures that will take place for you to create a good credit score. It is up to you to maintain the process of paying loans and fees at the right time. Having this privilege also bears you this responsibility.
There are consequences if you do not plan how you pay your bills on time. This may result in you getting in debt, or maybe revoking your privileges from a high credit score to lower, or worse, getting a low credit score and not having the privilege of getting a credit card.
On a regular basis, you have to analyze the needs of your business and the credit card that fits your expenses. The privilege that the credit card gives you should be mixed with your correct behavior. Every purchase you make will reflect on everything you do with it.
Using a credit card is a good investment. If you avail of a card with an annual fee with good use this can help you and your business. Cashbacks and rewards can reimburse your annual fee if you make big purchases.
Your credit card can be a tool to make purchases with added benefits. These benefits do not come free and you must be responsible enough to keep track of when you should pay. Always remember this when you get your credit card.
Good luck on your future journey with your credit card!