A business credit card applicationis used to apply for a credit card that is issued to the business owner in his or her business' name. Getting a business credit card allows small business owners to get loans, make payments and build credit history without putting their personal credit on the line. However, when they apply for a business credit card, their financial history very much matters; though there are ways to work around that.
Credit History and Business Credit Card Application
Before the business owners get a business credit card, they have no business credit history. This means that their application will be judged solely on the business owner's personal credit history. If he or she went through a bankruptcy, the credit score will reflect that.
This does not necessarily mean that the application will be declined,
but it does mean that the business owner will probably have to settle
for higher interest rates and other stringent terms. That said, if the
business owner maintained good credit since bankruptcy, the banks may be inclined to consider the application in a more favorable light. And once 7 years passed, the bankruptcy will vanish from the business
owner's credit history altogether.
Reducing Credit History Penalties
Business owners who went through bankruptcy can qualify for a decent business credit card if he or she forms a Limited Liability Company or a C corporation with at least one person who has a good credit history. Under this arrangement, the business credit card can be used by all members of the LLC/C Corp in question, which reduces risk and makes banks more inclined to accept the application.