You’d surprised how many people have gotten the wrong impression of one of the most valuable tools in an entrepreneur’s arsenal! The “debt is bad” mantra is slowing going out of style as real estate investors and other business startups have relied on credit cards, loans and other credit lines to fund their business.
Credit cards especially are the most accessible and easy to use funding sources you can find. It helps build your credit to carry balances, and good payment history can help you get approved for bigger credit lines, lower interest rates, and even personal loans.
Rather than use cash advances with high interest rates, it’s better to use the cards to purchase materials, business supplies, equipment, websites, and it can even be used for marketing expenses to advertise your business.
Depending on your credit you could see rates as low as 0% for 12-18 months or if you’re on the lower end, cards that charge 24.99% and up. If you’re credit is really bad, consider a secured credit card with a deposit to build your credit for later business use.
Here’s a video of how credit cards work:
To get a free look at your credit score you can go to Credit Karma and get your Transunion and Equifax score right away. That should give you an idea of what cards to apply for and give you a much better chance of approval.
As always, use credit responsibly and good luck!