Many small business owners do not have sufficient credit histories to allow them to qualify for traditional corporate credit cards. Having the ability to pay for your company’s expenses using debit or credit cards can help you to have greater flexibility. If you either have a problematic credit history or insufficient credit to qualify for a business credit card, you might still be able to get a secured credit or debit card for your business. Before you choose a card blindly, it is important for you to understand how to compare secured credit cards so that you can get the best deal.
What are secured business credit cards?
Secured business credit cards are cards that extend lines of credit to businesses that are secured against deposits that the businesses have to make. This may allow a business that has a limited credit history to obtain cards to use for business purposes. When you are trying to compare secured prepaid cards, it is important that you pay attention to the annual fees and the interest rates that the cards might carry. Some secured card companies charge high rates of interest on the card balances and also charge substantial annual fees.
How to compare secured credit cards
Many secured credit card companies run credit checks when you apply. Having a credit check run on your credit can cause your credit score to fall. If you know that your business needs to get prepaid cards for spending, it might be a better choice to compare secured debit cards to debit cards so that you can avoid a potential hit to your credit.
Disadvantages of secured credit cards for business
Secured business credit cards have several disadvantages. These cards depend on your credit. If you have problematic credit, you may be denied. Even if you are approved for a secured credit card for your business, you will likely need to contend with high rates of interest and low credit limits. Every time you undergo a credit check, your credit score goes down. All of these are reasons that should lead you to consider secured business debit cards instead.
Benefits of secured business debit cards
Secured business debit cards offer multiple benefits to small business owners. These cards do not depend on your credit, so your credit will not be checked. When you are looking for a secured business debit card, you should choose one that does not result in interest, has no credit limits and doesn’t require a credit check. The best secured business cards should also allow you considerable control over your business expenses.
The business debit cards at Bento for Business offer the better perks to small business owners. These cards do not require any credit checks or charge any interest. You simply make a deposit into your account and decide how much money to place on each of the cards that you order for your employees. You can order up to 10 cards at a monthly cost of just $29 and will not be assessed high annual fees. There are no credit limits since the cards are secured against your deposit, and you can deposit as much money as you want. Your deposit will be insured by the FDIC for up to $250,000. You are able to view the spending of your employees in real time on your dashboard, which can help you to stop fraud and thefts from occurring.
Contact Bento for Business to compare secured debit cards
Secured debit cards from Bento for Business may offer your company better expense management and the flexibility to make needed purchases. To learn more about the benefits that these cards have to offer, call Bento for Business today at 866.220.8455.