Business Credit Card

andystephens

Hi All,

What would be the best credit card for a new business? I also do not have a great credit history even though its all sorted now, would this affect anything?

Thanks

CannyJock

Probably will affect it - check your credit report to be sure though if you've not done so already. I helped someone recently get a card and suspected their credit report would be a train-wreck because of the number of "late payment" charges on their bank statement. Turns out that they hadn't missed a payment because the second application always went through (they were useless at clearance times on cheque deposits and regularly took their available funds too low).

I use a HSBC 0% purchase card at moment, gets me 0% for 12 months so I can keep my own hard-earned money in the bank.

Also buys me a bit extra flexibility on the cashflow side when it comes to chasing clients down for payment.

SkintKlint

What is / will be the legal status of your business? Have you any partners / directors / shareholders?

billion25

AMEX has a no-fee business cashback card and no-fee Nectar credit card for small business.

SkintKlint

All the usual suspects do business cards (Not affiliate links by the way!):

• Barclaycard
• AMEX
• HSBC
• Lloyds TSB

Some will require that you have been trading for at least a year, others may want security (personal guarantee).

I'd suggest visiting comparison sites and taking the time to choose the best card for your needs - Don't necessarily just take somebody else's advice... different cards suit different people / businesses.

Comparison sites:

• Moneysupermarket.com
• Loans, Mortgages & Credit Cards
• Which Credit Card 4U
• Fair Investment Company

andystephens

I am just going to be a sole trader

SkintKlint

Have you taken advice on this Andy (I'm not the best one to give it by the way!) - I'd speak to an accountant before you decide (the legal status that is not the card!)

andystephens

I have taken advice from a couple of sources and going sole trader would be better for me. I am just looking for a basic credit card really, which does not need to have a high credit limit.

jonesMUFCforever

A 'basic' credit card does not exist . Unless your credit rating warrants a card you will not get one.

Who are your couple of sources - your mates down the pub?