Due to the recession and tough economic times many business owners have seen their credit score drop and may be having trouble getting a line of credit for their business. Many businesses, like people, that may have taken a hit in their credit score are finding secured credit cards to be beneficial in getting back on their financial feet.
Credit cards are not difficult to get for many people, but the trouble comes when a person or business has a low credit score and wants to build up their credit history with a credit card. While this can be a good idea, typically, a high interest rate is going to be given to anyone or business in this situation.
Secured credit cards, from reputable lenders, often come with a competitive interest rate that can make buying on credit or rebuilding your credit score a bit easier since interest won’t necessarily be such a problem.
Financial advisors caution businesses and small business owners that they should research the secured credit card options available before proceeding. There are countless sources that charge excessive fees and fines, which is going to cause any business owner more trouble than assistance in trying to rebuild their credit score.