Applying for a small business card will give the company access to numerous business funding and this may include loans or cards. However, how can you establish your business’ own credit rating when you are just starting out? Most lenders will base their decision on your personal credit rating. This will be the lenders’ guide to gauge the level of risk in lending to a business you own.

But what if you have a bad credit score? What can you do to increase your chance of getting small business credit card? Just follow these simple tips:

Tip 1) Make an effort to increase your personal score before you hunt for business cards. If you start paying off on time for three consecutive months, it will make positive changes on your low credit score by up to 2 to 4 points. To know various ways to improve your score, you may need the counsel of a financial adviser.

Tip 2) Consider creating a corporation to get business credit cards. This business structure will automatically mean that your business is separated and not an extension of you. Note that if you are building your business under your name and you have yet to file any documents with the government, lawyers or accountants then your business finances is considered as your personal finances. So make sure that you got your paperwork covered to keep business and personal finances separate.

Tip 3) Do not settle for a PO box, get a physical address. Indeed, merely using PO box will get in the way of you getting cards for business. In addition to a physical address, consider setting up a business phone line as this may also give positive impression on lenders. It also ensures that you can be reached anytime.

Tip 4) If you did everything you could but you are still unable to qualify for business credit cards, look for people you know who have excellent credit rating. Ask them if they are willing to co-sign application for you. Despite not being able to have a business application for credit co-signed, but you can as an individual. Get credit card under your name and make sure that you make timely payments. Eventually, you can build a great rating and in due time, get your own business cards.

Increase income – First of all, you can always increase your income by simply working more hours or getting a second job. The more money you make, the more you can save and the more you can put towards paying off your debt.

Limit spending – You also need to make sure you limit your spending. Are you buying things you want or things you need most of the time? Try just for one month not to buy anything entertainment related or something you don’t need, and instead pay off your credit cards.

Money – Put all the money you’re making towards your credit cards. This should really be easy if you’re just paying for the basic things like gas money and don’t have a mortgage or “real” bills yet.

1st priority – If your debt is that big of a problem to you, it should easily be your first priority. There should be no excuses as to why you can’t get rid of it. There are several possibilities, so take action and get rid of it for good.

Getting rid of debt can take time, but it isn’t hard to do. Stop paying the minimum payment, and start putting more money towards your card or you’re just going to be paying for the interest rates that are racking up.