Generally speaking, getting a business credit card requires a credit score of at least 670. Although a higher credit score can increase your chances of approval and result in a higher credit limit on your card, it can also increase your chances of being rejected.
Yes, you can apply for a business credit card to launch your venture. In fact, it may be an excellent method to establish credit for your company and get rewards for your purchases. But bear in mind that you’ll probably have to personally guarantee the card, which means you’ll be responsible for any debt accrued using it.
Furthermore, as a startup, it could be more challenging to be approved for a business credit card because you might not yet have a solid revenue stream or credit history. Consider requesting a secured company credit card in this situation, or a personal credit card that you may use to pay for business expenses.
Discover offers a cashback rewards program called Simply Cash on a few of their business credit cards. In exchange for statement credits, gift cards, or deposits to your bank account, Simply Cash lets you earn cashback on purchases made with your card.
The card you use and the type of purchase determine how much cashback you can get. For instance, you might receive 5% cashback on purchases of office supplies and phone service, 3% cashback on dining and gas expenditures, and 1% cashback on all other transactions.
With a credit score of 600, it might still be feasible to apply for a Discover card, but it might be more challenging, and you might end up with a higher interest rate or a smaller credit limit. In addition to credit score, Discover, like other credit card issuers, considers applicants’ income and credit history when evaluating their applications.
Consider applying for a secured credit card or a credit builder loan if you need to raise your credit score but have a poor one. Over time, these choices can assist you in establishing or repairing credit.
Depending on the cardholder’s creditworthiness and other variables, the average credit limit on a Discover card can change. There is no defined range of credit limits provided by Discover, however cardholders can ask for an increase in their credit limit if they have a solid payment record and rising credit score.
It’s crucial to keep in mind that just because your credit limit is big doesn’t imply you should always use it. To maintain a high credit score, it is advised to keep your credit utilization ratio, which is calculated by dividing your credit card amount by your credit limit, under 30%.