At some point in your career as a small businessperson, you’ll probably receive applications for business credit cards no credit check required. At first it might seem like a dream come true, especially if (like many businesses starting out) you have no credit record to speak of. But you’ll probably start to wonder if anything like this can really be as great as it seems.
Knowing the Score
Before you can judge any credit card offer – credit check required or not – you need to know how the industry works. It’s quick and easy to learn all about the industry online, especially if you find a good site like Credit Card Whiz Kid and follow it regularly.
Once you do, you’ll realize exactly how abnormal business credit cards no credit check required really are. In fact, they’re a complete impossibility. No credit card company in the world issues cards without doing a credit check: that’s simply not how the industry works. Every time someone issues a credit card they take a risk that you won’t pay them back, and no one’s going to do that without checking your past.
So what’s the deal with those business credit cards no credit check applications? It’s simple: they’re scams. Read the fine print and you’ll usually find that there’s some sort of application fee, which the company will snap up. They will then either refuse you credit or do a credit check anyway and base their decision on its results. Sometimes, the fine print even specifies that their no credit check policy involves… a credit check.
The only exception to this rule? Secured credit cards. These are essentially like debit cards. They’re credit cards where your ‘credit’ limit is the amount you keep in a special bank account set aside to cover payments if you don’t or can’t. For obvious reasons, these cards don’t require credit checks.
The simple fact is, there are unscrupulous people out there who prey on individuals with poor credit. Businesses make an easy target because when you’re starting out, you probably don’t have a credit score, making it difficult for you to get a legitimate credit card. But even if getting credit seems difficult, you shouldn’t fall for business credit cards no credit check applications.
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