Alternative Means Of Securing Guaranteed Business Credit Cards

If you are looking for a guaranteed business credit card, there are a few different ways that you can go about this. Essentially, securing any credit card or loan means putting something of value up, often in the form of collateral, which can be given to the lender or card issuer in the event that you default on payments. Below are a few alternative ideas of how to secure a business credit card.

Refinancing a Home Loan

While it is common to use your own home as collateral to get secured loans or a credit card, you may have not considered doing this if you are still paying off your mortgage. However, you can use your current home equity as collateral, if you have enough. Think of home equity as the part of your home that you’ve already paid off; it is the difference between the full value of your home minus what you still owe on your mortgage. If you don’t have the home equity you need for the credit card or loan, you can build it up by doing repairs or other work on your home (increasing its value), or through refinance home loans that will help you pay off your home faster.

Ideas for Small Businesses

If you are looking to take out a small business loan or credit card, especially to start a small business, you may be asking how does secured credit card work? It is difficult to get the loan or credit card because you currently have no business credit. However, many lenders or card issuers are willing to use your personal credit to issue you a business loan or credit card, especially if you use some form of collateral. In the same vein, you may be able to put down an actual cash deposit out of your own pocket to obtain a secured business credit card (often equal in value to your deposit). This is especially helpful if you have a new business and you are looking to build business credit, to eventually get unsecured business loans and credit cards.