For people doing their business, very often there is the problem of maintaining their personal credit rating at a high level. Even if your personal credit is in excellent condition, doing business most often does not go as smoothly as we would like. This matter negatively affects the condition of not only the business credit, but also the personal credit of the business owner. That is why business credit card with no personal guarantee becomes very relevant for owners of small business.
There are very few offers of this type of credit card, which could not influence significantly on the of business possessor personal state of credit. All lenders, including issuers of various credit cards, send data about the credit actions of the clients to the US credit bureaus, which maintain a credit rating for each borrower.
We faced a similar problem and know that this applies to everyone who is going to do their business, so we started searching for options for business credit cards with no personal guarantee and here you can find the results of this search. If this is relevant for you, read on.
The influence of Business Credit Cards on the Personal Loan of Business Owners
Lenders are always at risk of losing their money when lending them. Even in all respects, reliable borrowers may not repay borrowed funds for a variety of reasons. Therefore, lenders strive whenever possible to ensure the safety of their money by all available ways. Business in this regard has even more risks, especially if it is at the initial stage of its development.
Personal guarantee is one of the ways to protect themselves from risks for creditors and credit card issuers. The personal guarantee does not allow the borrower to carelessly treat the obligations of his enterprise when he does not have the opportunity to repay the loan. In case of such an obligation as a personal guarantee is, he will not be able to disown them, as his personal assets, property and future financial capacity will be involved in this and also be at risk. Most loans for small businesses are unsecured, so this way of protecting the interests of lenders is widespread.
If you look at personal guarantees from a business possessor who takes such a loan with guaranty for his business, he gets an extra burden and risk on his credit rating. While your enterprise is not capable to repay a monthly loan payment on time, then this will negatively affect your personal credit, when you sign personal guarantees. Information on all credit transactions will be sent to the credit bureau and reflected in your credit report.
Moreover, to personal guarantees when requesting a credit card for your business, other factors may also affect you credit score. A hard credit check when applying for a business credit card always lowers your credit rating. Also, the total amount of your credit increases, as well as credits number, which will reduces your personal credit rating too.
Even a business credit card with no personal guarantee will not save you from lowering your credit score if you maintain a high balance on your credit cards, including business ones. Different lenders may have different approaches to the transfer of information to credit bureaus, but you can count on this when the first late payment take place. For example, a firm such as American Express will not inform the credit bureau information about your business card transactions in case you do not let a payment delay.
Nevertheless, a credit card for business proprietor with no personal assurance seems to be a more attractive option in order to take less risk and not harm your credit status. Therefore, we conducted our own research of various business credit card options to find the most fitting one.
Business Credit Cards
Finding a credit card for business with no personal surety of its owners is not so easy, since very few creditors want to give up the guarantees of business owners. Several financial companies may offer a credit card without personal guarantees under definite terms, in case you match specific demands.
Some other financing enterprises proffer alternative options. For example, the Chase company do not report information to credit bureau even about overdue payments, unless its term exceeds 60 days, which may well be enough to solve problems and pay off the credit obligations of your business. However, you should not forget that the policy of a bank or other credit company can change at any time, therefore you should always clarify this information.
Features for Business Credit Cards With No Personal Guarantee
|Credit Card||Best For||Key Features||Annual Fee||Rating|
|American Express Blue Business℠ Plus Credit Card||The best option for a flat rate reward.||Rewards: 2X Membership Rewards points per dollar on the first $50,000 in purchases every year, 1X Membership Rewards point per dollar on all other purchases||No Annual Fee||4.3 / 5|
|Ink Business Preferred℠ Credit Card||The best in remuneration for travel.||Introductory bonus: 80,000 bonus points for spending $5,000 in the first 3 months.||$95||4.5 / 5|
|Ink Business Cash℠ Credit Card||The best offer for a business credit card cashback is an Ink Business Cash.||Introductory bonus: $500 cash back after spending $3,000 in the first 3 months.||No Annual Fee||4.7 / 5|
In fact, at the moment there is only one business card that does not require personal guarantees – this is Bremer Bank Visa Signature, but it may not be suitable for many small business owners, since it is designed for medium and large businesses, so it is worth considering other options.
American Express Blue Business℠ Plus Credit Card
American Express Blue Business® Plus Credit Card is the best option for a flat rate reward. This credit card does not charge an annual fee, which makes it a very attractive option, even without taking into account the reward system. Blue Business® Plus offers a reward program in the form of bonus points. Every year for the first 50,000 dollars spent on purchases for every dollar you will receive 2 points. For all subsequent expenses made with its help until the end of the year, you will get one point for each dollar.
Ink Business Preferred℠ Credit Card
The next option business credit card can be called the best in remuneration for travel. Despite having a $ 95 annual fee, the Ink Business Preferred℠ Credit Card offers a good reward for traveling. The points that you will receive as a reward for purchases will be 25% more if you exchange them for a trip through Chase Ultimate Rewards.
Thus, provided that you spend $ 5000 for the first three months, you will be credited 80 thousand points, and the bonus for the travel will be one thousand dollars. If you often travel or your business is connected with permanent movements, then the Ink Business Preferred℠ card will be an excellent option of a business credit card for you and for your business.
Ink Business Cash℠ Credit Card
The best offer for a business credit card cash back is an Ink Business Cash℠ credit card. In the absence of an annual fee, which is in itself very attractive, this business credit card offers a $ 500 bonus. In order to get it, you will need to use Ink Business Cash℠ for the first three months after registering to make purchases for $ 3,000.
Personal guarantee is one of the protective mechanisms of money lenders, therefore, it seems difficult to find business credit card offers with no personal guarantee. On the other hand, you should not be too afraid of the additional burden on your personal credit.
Risk is simply an integral part of the business, which is always present. Only constant and systematic efforts to develop your business will be able to protect you from financial storms and not harm your credit.
A business without financing will not develop, and if it stands still, it will not last long. If you understand that you need a business credit card and you cannot do without it, then you should compare the conditions of different offers of such cards and choose the most suitable one for your type of business and your lifestyle. Planning the future development of your business and business processes will allow you, as its owner, to avoid most financial problems and, as a result, threats to your credit rating.
Moreover, as you could see, many lenders offer you certain opportunities in order to avoid the negative impact of operations with a business credit card on your personal credit. After you choose the most suitable business credit card options, before you apply, call the issuer of each card to determine for sure what information they will transfer to the credit bureaus and under what conditions.
In any case, try to always make monthly payments on your credit card on time to avoid lowering your personal credit rating, also as well as your business credit. This applies to all loans and credit cards, regardless of their purpose of use and status.
If you are interested in other types of credit cards, small business loans or personal loans, you can fill out the loan application form, which is located on our website. In response, you have to get offers from different lenders. Provide all the required information to increase your choice of options and chances for loan approval.