Credit Card To Start a Business ?

credit cards for business


Is it wise to use Credit card to start a business ? well, getting funds to start business, to be honest it’s not easy! because when you start a new business! mean, nobody want to know your drama 🙂 as simple as that! so I am not surprise , when warren buffet or Bill gates starting he’s first business many people laugh hard on him! it’s true! and unfortunately it will apply to your business journey! 😉


The point is, starting new business are not easy! but still we felt it’s gonna be our success! (I know how it feel)  since nobody give you a fund or capital to start a new business, so basically yeah, I think Credit card COULD BE! a good Idea! although it’s not recommended by many people! doesn’t mean using Credit cards, to start business are bad idea!

Though I have to warn you! before using any credit card to getting a fund for business, you must realize the interest rates, are quite big! and if your business fail, it can make your loss double, or triple! that’s negative side, for using credit card for business!

Though I can give a suggestion, if you want on safe side, here what you should do to avoid double loss, or triple loss, from credit cards!


First, Find best APR or interest rates, that credit card company can offer! the idea is, if your business not success, or fail, you still have time to pay the interest rates! that’s why small APR, will help you for long run! but if you use Credit cards, from best buy or wall mart credit cards! to be honest, I can said, it’s big No no!

actually you can find Low APR credit cards, if you do business with credit union! try find them in your area! join with them and get their credit product! such as, personal loan, auto loans, credit cards loan and etc! Credit union can give you a half APR from averages banks! most of credit cards company have best APR about 14% , meanwhile Credit union have 5%-10% APR , so if you business fails, and your debt are to big to pay off, at least it will need 10 years to double your debt! but if you dealing with commercial credit cards, it will most likely, in the 2-4 year, your debt will be 2 times, than previous! that’s why don’t use commercial credit cards to finance your first business!

To get Credit cards from credit union, for several cases are not easy! since they have so many rules and restriction! that’s why it would be great, if you already do business with them, for many many years! because most of credit cards, can give you much lower APR if you have good credit history! but for new creditor, or maybe bad credit! most likely they will give their standards APR from 10% to 16% APR!  but the point is, build your credit score first! for 1 or 2 years at minimum! and then use that history to get decent capital with low APR! and for sure, low APR can help you a lot for long run! and not to mention, if your business having big success, and need more larger capital to smooth your cash flow! 😀  for Sure low APR can benefit your business over the long term!

In short using credit cards to start a business are possible! though you need to find right the best finance institution to get lower interest rates (APR), cause low APR mean big help for your business!