From the course: Financing Your Business

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Cons of using credit cards

Cons of using credit cards

From the course: Financing Your Business

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Cons of using credit cards

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- Now, there are some potential drawbacks to credit cards. One that I'm not too worried about is when you apply for a credit card, whether it's a small business credit card or a personal credit card, there will be an inquiry into your personal credit. All the major issuers that issues small business credit cards check the owner's personal credit, so there will be an inquiry. An inquiry will drop your credit score maybe three to seven points. So it's not a huge drop, but it's something to be aware of. Since they will be checking your personal credit, you'll need to meet their minimum credit score requirements. At Nav, we work with all the major business credit card issuers, and there are some that issue cards to individuals with credit scores in the mid 600s, some that require credit scores of 700 or above. I should note that the issuer checking your personal credit isn't all bad. If you have decent credit, you may…

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