Updated: Dec 3, 2022
These are all valid questions, and each one depends on the individual and their specific situation.
In this blog post, we will explore the pros and cons of getting a credit card on disability to help finance your new business venture. We will also discuss some other options for financing your business, so you can make the best decision for you.
It's a good idea... but make sure you're not getting into credit card debt.
Many people with disabilities rely on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) as their primary source of income.
While these programs provide essential financial support, they often don't leave much room for extra expenses. As a result, many people with disabilities find themselves living paycheck to paycheck, with little to no savings.
This can make it difficult to cover unexpected costs, such as medical bills or car repairs. One way to give yourself a financial cushion is to start a business with a credit card. This can provide you with extra income to cover unexpected expenses and help you build up your savings over time.
However, it's important to be careful when using a credit card for your business. Make sure you're not spending more than you can afford to pay back, and always pay your bill in full each month to avoid accruing interest charges.
By using a credit card wisely, you can give yourself the financial flexibility you need to succeed in business.
Join a credit union and get a secured credit card if you have bad credit
There are a few things to consider when you're deciding whether to start a business with a credit card. If you have bad credit, a secured credit card from a credit union may be a better option.
A secured credit card requires a deposit, which is used as collateral in case you default on your payments. This can help you build up your credit history and improve your chances of getting approved for a business loan in the future.
However, if you have a disability, you may be able to qualify for a business credit card with no deposit required. This can give you the funds you need to get your business off the ground, and it can help you build up your business credit history.
Ultimately, the best option for you will depend on your individual circumstances.
While there are certainly pros and cons to starting a business on disability, the bottom line is that it can be done. If you have the drive and determination to make your business a success, nothing should stop you from achieving your goals.
If your credit needs to be fixed, you speak with a credit advisor about consolidating your debt or working out some type of low income payment arrangement to pay off the debt or request for a settlement offer if you have you have the extra money.
If you cannot afford to do that, then you may have to wait between 7 to 10 years depending on the type of debt that it is, but if you can collect some extra income, you can just use some of the income to get rid of the debt.
You also can get a free copy of your credit report through annualcreditreport.com and view what's on your credit first to find out about what's on your credit and how much debt you owe. If you don't want to pay to get your credit fixed, you can also fix it on your own.
You may need to work a little bit harder than others, but with perseverance and some creative thinking, anything is possible. So, what are you waiting for? Start planning your new venture today.