Let’s talk shop and business credit cards!

So you’ve launched your own start-up and now you’re asking yourself, “How long till I can score a business credit card ?”

Here’s the shocker: you don’t have to twiddle your thumbs waiting for your business to hit some arbitrary milestone before you can apply. Most card companies are more interested in your personal credit history and the financial info you include in your application. Got a shiny credit score and can meet other necessities like income requirements? Baby, you’re golden!

Want some unconventional wisdom? Applying for a business credit card right after your company’s maiden launch might be one of the smartest moves you make. Trust me, keeping your business and personal finances separate from the get-go not only untangles bookkeeping nightmares but also wards off pesky tax issues down the road. Plus, if you’ve been savvy enough to set up a corporation or LLC, separate accounts help safeguard the legal framework that keeps your business and personal assets from a messy divorce. Not to mention the sweet, sweet perks that many business credit cards offer like tempting rewards programs and generous sign-up bonuses – who can say no to that?

One of the VIP perks of owning a business credit card is the financial elbow room it gives you. Unless you screw up by missing payments or defaulting, card issuers usually don’t chitchat about your business card activity to your personal credit files. So, if you need to splurge on a large purchase- like inventory- you won’t see your personal credit score dive bomb overnight. But I’d be remiss if I didn’t caution you that it’s crucial to keep a close eye on business expenses. Most card issuers will whisper your payment activities into the ears of business credit bureaus, so late payments or high balances will leave a mark on your business credit profile. The golden lining? If you use your business credit card responsibly, it could be your stepladder to building and maintaining strong business credit scores. This could make it easier to secure financing in the future – pretty nifty, huh?

If you recently bid adieu to your former employer and you’re currently sans personal income, you might find it tricky to get approved for a small business credit card pronto. But hey, don’t hit the panic button yet! Many card issuers let you list alternative income sources, like your spouse’s income. If possible, mulitask and apply before you hand in your resignation letter.

Remember though, business credit cards do come with their own set of caveats. They’re wild cards not tamed by the CARD Act, the consumer law that serves as a watchdog for personal credit cards against sudden rate spikes or moving due dates. That said, some business card providers have taken on the role of good samaritans and have voluntarily adopted many CARD Act protections for their business customers. No matter what, always, and I mean ALWAYS, read your card agreement and save a copy. You want to be in the know about your rights and obligations, don’t you?

All said and done, in most cases, the pros of getting your hands on a small business credit card early on usually outweigh the cons. So if you’ve begun the grand journey of launching your business, there’s no need to wait around to apply for that card.

About the author: Gerri Detweiler is the crown jewel at Nav, where she reigns as Head of Market Education. Nav’s mission is to assist small business owners in nurturing personal and business credit, while building financially fit companies. Co-author of “Finance Your Own Business” with Garrett Sutton, Gerri has spent over 20 moons answering credit questions. Got any inquiries yourself? You can email her at creditquestions@Nav.com.

Now that we’ve armed you with some insider info, check out Money’s Picks for the Best Credit Cards 2015-2016 next. You’re welcome!