And although many people might feel a bank is a better choice, sometimes the banks won’t help. So it’s either a credit card, (or two, or three) – or no business.
If you’re planning the plunge into a home business, I recommend you take stock of your credit obligations, and investigate if you can get more safely. Because credit IS a way to finance a business, whether banks like the idea or not!
As with any financial instrument, you need to understand what’s available. For example, Credit Cards Club is a site that provides information on credit card options. Just checking the front page alone, they offer information on types of cards, the APR (financing charges), and so on. For instance, a balance transfer card allows you to move your current balance to another card, to benefit from a lower interest rate.
Another option, a prepaid card, is like a bank account, but provides the convenience of using a credit card online. While this type of card won’t fund your business (the ‘credit’ in it is cash you’ve put in ahead of time), it is a way to safely use a credit card online, and it can be used to help rebuild a credit record.
Besides being a ‘one-stop’ shop for the current card offers, the site makes it easy to apply for them. And they include information on credit, including reports on the dark side of credit, credit repair, and tips on selecting a credit card.
Information is the first step in getting sufficient credit. And while a credit card is not a long term solution for starting a business, it may help to bridge the gap from idea to when the banks come knocking on your door. Make sure to do your research, and arrange to pick the best credit cards in advance.
