A good interest rate on a credit card is something that just about everyone hopes for when they apply for the business credit card, and this article will discuss tips to get a business credit card with low interest. The interest rate is something that depends entirely on the credit score of the person applying for the credit card. Other things can also rely on the credit score such as the limit and the terms of the credit card. For those reasons, a person should always try to improve their credit before applying for a credit card. If you are interested in getting a good interest rate on a business credit card, then keep reading to get a couple of good tips.
Tip 1: Make Your Payments on Time
Pay particular attention to make sure that payments are made on time for loans and other kinds of debts for a period of two years. Any missed payments usually go the credit report after two years. And, the longer you go without having any kind of slip ups, the more favorably your application will look to the creditors. Making on time payments is one of the best ways to also raise your credit score. So, if you want the lowest interest rate on your credit card, then always make all payments on time.
Tip 2: Reduce Credit Card Balances
Reduce any balances that you may already have on other credit cards.
A balance, especially a high one, can impact a person's credit score.
In order to get a good interest rate on a credit card, you may consider
reducing your balances by up to 10 percent of what the total credit
limit is. This will help raise your credit score, while also helping
you get a lower interest rate on your new business credit card that you
are applying for.
Tip 3: Get a Secured Card
Credit improvements are not the only thing that can secure you a low rate on the credit card. If you can get a credit card that is secured, it may raise your chances of getting a low rate on the card. This is something that is not commonly done, but it's possible, and it can help decrease the amount of the interest on the card that you take out.
Tip 4: Secure Card with Down Payment
In today's time, getting a credit card and having something to secure it with, such as a down payment, can increase the amount of the credit limit and lower the interest rate. It is going to help you lower the total of the interest payments that you will have to pay. That can be a great thing when you are trying to get out of paying a lot of interest anyway.
Tip 5: Set Aside Money
Always set aside an allotted amount of money for making very high
monthly payments. You may have to start out with a moderate interest
rate and then work your way to a lower one. The higher amount of
payment you can make each month, while making the payment on time, can
help you show the creditors that you mean business. You may be able to
lower the interest rate after a period of six months of making on time
payments with larger payment amounts.
Following these 5 tips could help you with getting the best kind of business credit card with the lowest interest rate possible. Take the time to read over them again slowly, and you may find that getting any kind of business credit card with a lower rate is more possible than you think.