Qualifying for a High Limit Business Credit Card

by | Dec 29, 2021 | Small Business | 0 comments

When you are a smaller business, there are times when you’re going to need to increase your purchasing power. One of the quickest and most practical ways is with a high limit business credit card. A high limit card enables you to buy the things you need for your company and therefore keep things running smoothly. A high limit business credit card allows many business owners to purchase items they require and lets them build up their business credit. Mainly, if your credit score is less than stellar, a credit card if appropriately used, really can go a long way toward getting you back to where you need to be in terms of credit score and overall credit history.

The key is to ensure that your credit card application is solid, thereby giving you the best chance of being approved for whatever high-limit business card you decide to apply for. In this article, we review how you might solidify your credit card application so that you can get some of those higher-limit cards. We also look at the pros and cons of having a high limit business credit card.

Applying for Your Business Card

Review your credit report thoroughly. You want to be sure and do this before filling out the credit card application to check your credit score. There may be errors in your report. There may be cards that you no longer use and thus accounts that should be closed. If you do see inaccuracies, report them immediately. And also, identify loans and open cards that are higher interest. It would help if you worked to start paying these down directly. This will put you in a better position for credit card approval.

Some other steps you can take…

1) Make sure you make on-time payments. Given your current cards and loans, you always want to be on time with your payments. This is how credit card lenders determine your creditworthiness as far as a high-limit card goes.

2) Don’t open too many accounts over a short period. If you are looking to get a high limit credit card, it may make sense to hold off opening new accounts as this can be a red flag for some credit card companies.

3) Pay down your current debt. The credit card company will base its decision partially on your current percentage of credit card usage. If your use is too high, this could hurt your application for a higher limit card.

Some Pros and Cons of Getting a High Limit Credit Card

Credit cards can be essential to the health of a small business, especially if you are having difficulty getting a loan or line of credit. That said, you do not want to bite off more than you can chew. Using a credit card responsibly is so important.

Pros of a High Limit Card:

• They are usually unsecured. An unsecured card means that you don’t have to put money or collateral down on the card. There are some forms of business funding that do require collateral.
• Cash advances are possible. Most high-limit business cards will usually have a cash advance option which lets you access to cash up to a certain amount.
• There are often rewards. With larger limit cards especially, you can usually receive cashback on purchases, bonus miles, or a variety of other reward options.

Cons of a High Limit Card:

• Interest rates can be higher. And if you fail to pay the card off every month, this can start to hurt your company financially.
• Harder to qualify for. As it is a high-limit card, the credit card company will scrutinize your application; you may not be eligible if there are red flags.
• There could be annual fees. Some higher-limit business credit cards do come with annual fees. You want to be sure you understand all associated costs before applying for a card.

First Union Lending is Here for You!

We want to help. For years, we’ve been working with small businesses, getting them the cash they need when they need it. Whatever type of business funding you need, we likely have the perfect solution for you. We also offer lines of credit, SBA loans, and business credit cards. Some of our clients receive the money in their accounts within two days—we do work that quickly. Call today and let’s get started!