If your small business hasn't established credit yet, or has poor credit, consider a limited credit history credit card. With these cards, you can start making purchases and building up your credit history even though your credit rating is low.

It can be hard for a small business just starting or with bad credit to obtain any credit cards. Limited history cards are a great solution for those businesses. However, they aren't the only solution to your credit problems. When using a credit card for limited or poor credit history, make sure to pay attention to the following:

1. Pay your limited credit history credit cards in full at the end of the month. Check your credit report to make sure the card is reporting your good track record.

2. Try to stay away from secured credit cards if possible. They can tie up your business assets when you need them.

3. Get the highest credit limit that you can, but don't max out your card. Your credit can grow if you have a high credit potential but show responsibility with that potential.

Action Steps
The best contacts and resources to help you get it done

Learn about options for limited credit history credit cards

Before you even fill out credit card applications for limited to no credit history, learn as much as you can about how credit affects your business. Then you can use your credit card to your advantage.

I recommend: Find out how quickly credit card interest can rack up at CardRatings.com. Also, at Bankrate, you can take an online course that explains how you can use a credit card to build your credit.

Find the best credit card for limited credit history holders

When your business has limited or poor credit history, it can be taken advantage of easily. Do your research to find the best credit card. Limited history cards can vary widely so make sure to watch out for fees tacked on.

I recommend: CreditCards.com will let you search for a credit card provider for limited credit history or for credit cards for people with no credit history. At Credit-Land you can also search for cards available to people with poor credit.

Build your credit with credit cards for limited history

Once you have your limited credit history credit card, the next step is to start building your credit history. By using your card, you can improve your credit score and make your business more attractive to others.

I recommend: Consider the credit-builder program at b2bcredit.com. Also, Buildsmallbusinesscredit.com can help you build your business credit and even possibly give you a loan with no guarantor.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Choose limited history credit cards that report monthly to the credit bureaus. If you are keeping up with payments, these frequent reports will help you build your credit faster.
• •  If you are still having a tough time obtaining limited credit history credit cards, talk to your local Chamber of Commerce. The Chamber's job is to help you find local resources to achieve your goals.