In the past, businesses had to rely on personal guarantees from their employees for a line of credit, however today, the majority of businesses have access to business credit cards that don’t require personal guarantees. Such cards provide many benefits, including low interest rates and rewards programs, that can assist businesses boost their profits and reduce their risks. Here, we’ll explore the different options for business credit cards that don’t require personal guarantees.
The Importance of a Good Credit Score
Having a good credit score is incredibly important as it can significantly impact various aspects of your life. Whether getting approved for a loan to finding an apartment or car, a high credit score can make these processes much easier. Here are 4 key reasons why you should aim to maintain a good credit score:
Faster Loan Approval: Having a credit score can speed up approved for a loan faster than if you have low credit score. Since the average loan approval time has decreased by 25% since 2007, a high credit score can expedite the process.
Better Insurance Rates: If you have good credit scores, you're less likely to be denied coverage by insurers. You may also receive better rates on car and home insurance policies.
Easy Approval for Apartment or Car: Landlords and car dealers often check your credit score before approving an apartment or car. With a high credit score, you'll have a better chance of being approved and avoiding any hassles.
Professional Advancement: Having a credit score can increase your chances of getting promoted at work or winning business contracts. Many companies consider an individual's credit score when making decisions about promotions or contracts.
Annual Fees Associated with High-Limit Credit Cards
High-limit credit cards can offer businesses a higher limit than standard credit cards, however they also come with hefty annual fees. Business Credit Cards It’s important for businesses to understand these fees before deciding whether or not to use a card with a high limit.
Chase’s 524 Policy
Chase offers the 524 policy, which allows customers to apply for a business credit card without providing a personal guarantee. If approved, the card requires $500 minimum deposit, but no personal guarantee is required. This policy is different from other major banks, making it ideal for customers who are uncomfortable with providing a personal guarantee.
Capital One’s Involvement with All Three Credit Bureaus
Capital One offers several different credit cards that require no personal guarantee from the customer. These cards reduce some of the risks associated with using a credit card, and they’re accepted by many different retailers. Capital One also offers great rewards programs that can help businesses save on their purchases.
The financial institution known as Capital One is actively involved with all three credit bureaus. By offering a variety of different credit cards that do not require personal collateral from customers, Capital One has succeeded in getting rid of some of the risks associated with using a credit card. Furthermore, these cards are commonly recognized by many different retailers, and arrive with great rewards programs that can help businesses cut costs for their purchases.
Among American Express’s most popular cards is the Platinum card, which doesn’t require a personal guarantee, but comes with a substantial yearly fee of $695. However, the benefits and benefits associated with this card are worth the investment. These benefits include, reimbursement for travel expenses, access to exclusive events, and more. Similarly, the Black card by American Express likewise doesn’t require a personal guarantee, and arrives with a substantial annual fee. But, the benefits that come with the Black card, such as free airport lounge access, reduced rental car rates, and more, can more than compensate for the cost of the annual fee.
If you don’t require a personal guarantee, the Barclays Black Card may be a great choice. This card provides competitive interest rates, rewards points that can be used towards travel or other purchases, and an automatic payment feature that makes it convenient to pay bills and other debts promptly.
To sum up, businesses have many options when it comes to credit cards that don’t require a personal guarantee. Such credit cards offer different advantages, so it’s important for businesses to do their research and select the option that best suits their needs.