How to Qualify for a Business Credit Card –

Who can apply for a business credit card?

There are several types of commercial enterprise credit cards. Some are reserved for big corporations that have dozens or even hundreds of cardholders, their own expense and reimbursement policies, and complex security needs, while others are geared toward little businesses with five or fewer employees. With so many occupation credit cards available, there ’ s one for precisely about any type of commercial enterprise. flush sole proprietors who aren ’ thymine formally incorporated normally qualify for some clientele credit cards. Restrictions on who qualifies normally vary by individual card issuers, but these are some you might encounter :

  • Organization type: Some card issuers will not issue business credit cards to nonprofits or unincorporated businesses, like sole proprietorships.
  • Industry: Some institutions will not extend credit to businesses operating in certain industries, such as multilevel marketers and cannabis- or firearm-related businesses.
  • Applicant qualifications: Every issuer has its own minimum qualifying criteria for card applicants, including income, time in business and credit score.

Unless you ’ ra prohibited from getting a card due to one of these restrictions, getting a business credit rating menu is frequently just arsenic easy as getting a personal tease. even if you are prohibited from getting a batting order from one issuer, you may even be able to get a unlike menu from a unlike issuer.

FYI FYI: There are so many unlike business credit cards available, there ’ s one for good about any type of business .

What do you need to apply for a business credit card?

When you apply for a business credit card, you ’ ll indigence to supply all of the information that you ’ five hundred customarily provide to apply for a personal card. Basic reach information like your name, mailing address, call number and electronic mail will all be part of the application. You ’ ll besides need to provide several items specific to your business, including your :

  • Business’s name
  • Business’s address
  • Years in business
  • Annual revenue
  • Estimated monthly expenses using the card

In addition, you ’ ll need to provide your tax recognition number ( TIN ). If your business is incorporated, this may be your clientele ’ randomness EIN. If you ’ re a lone owner or a single-member LLC, this may equitable be your Social Security number. You ’ ll besides need to department of state your position at the party, ampere well as Social Security numbers for any other business partners who own over a sealed percentage of the business ( normally 20 % or more ). Depending on the issuer, a calling card application may besides ask what industry the occupation is in, the nature of clientele ( whether it ’ s for profit, for exemplar ) and the count of employees or extra cardholders .

How to apply for a business credit card

If you think you fit the criteria for a business credit batting order and would like to get one to support your operations, you can apply anytime. While an lotion is elementary and entirely takes five to 10 minutes to complete, there are several things you should do first to make certain you get the right batting order for you .

1. Research your options.

There are dozens of different clientele credit cards available. Before you settle on a card, you should know your options. Study your business expenses to see what categories you ’ re spending money in that could qualify you for rewards. Some are great for humble startups that need brassy capital, offering long 0 % introductory periods. Others are ideal for more establish companies with reps who do a distribute of traveling, because they accumulate reward miles. still other cards have cash-back programs that offer big rewards for spending in certain categories. besides, check cards for fees and interest rates .

2. Pick a card.

once you ’ ve identified cards that offer the justly mix of fees, rates and rewards, you ’ ll have to decide which one is right for you. Make sure that you read the literature cautiously and understand all of the cardholder rights and obligations. If the card offers a 0 % introductory period, find out when that period ends. If there are caps on rewards or limits on how rewards can be redeemed, you should be mindful of them before you apply. besides, be sure to check the wag ’ mho qualification criteria to make certain that you can qualify for the batting order you want .

3. Check your credit.

If you have been in business for three or more years, you may qualify for a business recognition card using your business citation seduce. More likely, though, you ’ ll be applying with your own Social Security count, and issuers will check your personal citation grade. In either event, it ’ second normally a well idea to check these scores on your own before you apply to make surely they ’ re in good form. The higher your scores, the better. If your personal credit score international relations and security network ’ thymine at least 650, you may want to consider holding off on applying raw. That will give you time to improve your credit grudge by doing things like paying down debt, bringing accounts stream or resolving past credit disputes. Tip Tip: If your personal credit score international relations and security network ’ metric ton at least 650, you might want to hold off on applying for a occupation credit card until it improves .

4. Gather your info.

once you feel that your credit is in full shape, you ’ re about cook to apply. The last matter to do is to gather all of the information you ’ ll want as contribution of your application :

  • Your business’s TIN (found on IRS Form W-7 or SS-4)
  • Your Social Security number
  • Social Security numbers for any business partners who own 20% or more of your company
  • Your incorporation documents to confirm the number of years you’ve been in business
  • Recent financials to check your revenue and monthly spend estimates
  • A list of employees who will need cards

5. Apply.

now that you ’ ve found t.he calling card you want, confirmed that your citation is in finely shape, and gathered all the relevant information that you ’ ll indigence to apply, it ’ sulfur time to actually complete an application. This process is normally completed on-line and only takes a few minutes. Depending on the datum you enter initially, the circuit board issuer may have extra questions for you or require other information. This may be completed in subsequent steps as part of your on-line application, or it may require disjoined follow-up via earphone or electronic mail.

6. Await the card issuer’s decision.

After you formally submit your circuit board application, the lone thing left to do is wait and see if you ’ re approved. blessing decisions can take a few minutes, or they may take a sidereal day or two if extra follow-up is necessary. If approved, you ’ ll get your wag ( s ) in the mail to activate and start using .

Factors that impact business credit card approval

Though applying for a business credit batting order only takes a few minutes, credit card issuers gather a good softwood of information about both you and your business in that brief application. With all of this information going into an application, it ’ second easy to see that many items that can make or break your approval :

  • Your business type (some issuers don’t support nonprofits or sole proprietorships)
  • Your revenue or revenue expectations
  • Your time in business
  • Your personal credit score
  • The availability of personal guarantees from you and any partners in your business
  • Your industry

Of course, this list international relations and security network ’ t comprehensive. Credit card applications can be denied for any numeral of reasons. Just having a wyrd business savoir-faire – one that isn ’ thyroxine easily found in a postal code search – can be a disabling factor. The most common disqualify factor, however, is your credit grade. Most little commercial enterprise owners who apply for commercial enterprise credit rating cards apply using their personal credit, not their business citation. Because of this, if a business owner ’ s credit report isn ’ t in good shape – with a seduce of at least 640 to 700, depending on the card they ’ re applying for – they may be denied. What ’ s more, the relationship between a small commercial enterprise credit card and the owner ’ s credit batting order is a two-way street. The business owner ’ s personal credit rating score may cause the business ’ s batting order application to be denied, and any misuse of the ship’s company tease may come back on the company owner ’ s personal accredit .

Impacts on personal credit

When you apply for a business credit tease – particularly if it ’ s a belittled clientele poster – your lotion will likely hinge on your personal credit. This means that when you apply, the card issuer will run a hard check on your accredit. This arduous question will count against your credit and take several months to drop off your credit rating report. additionally, if you ’ re approved, sometimes ( depending on the issuer and card ) any balances you carry on your clientele credit may besides appear on your personal credit report – the lapp direction balances on your personal accredit cards do. This will further impact your credit if you apply for early commercial enterprise financing or even a personal loan. last but not least, applying for a commercial enterprise credit menu normally requires a personal guarantee from anyone who owns 20 % or more of the commercial enterprise, and sometimes from each cardholder. If your clientele fails to make on-time payments or defaults on a balance, those items will hurt your personal credit score .

When not to apply for a business credit card

Getting a business credit rating card can be a quick and easy way to access credit for your business, but sometimes, it ’ s not your best option, like in these situations :

  • Your personal credit isn’t in good shape.
  • You already have a lot of business debt outstanding.
  • Your business is just getting started and doesn’t yet have reliable income.

In these cases, you may not want to apply for a business credit card, because you ’ re less likely to qualify. just ampere much, though, a business credit tease simply may not be the ideal type of finance for your occupation. If you need financing for a long-run plan, for example, you may be able to secure better finance with a long-run, fixed-rate loanword. If you have seasonal worker finance needs that last four to six months, you may be better off with a term loanword or a line of credit. [Read related article:  How to Apply (and Get Approved) for a Business Loan ]

Bottom line

The process of applying for a business recognition circuit board is relatively quick and easy – it ’ randomness normally equally dim-witted as completing an application on-line. Before you do that, though, make surely that a business accredit calling card is the right finance option for your clientele. then, you need to research cards, pick the best one for you, gather your relevant information and confirm that you ’ ll likely qualify based on your citation score before  you submit an application. That way, you can ensure not only that you ’ ll be approved – and thus not waste a intemperate inquiry on your credit – but besides that you ’ ll find the best poster for your business.

Business Credit Card FAQs

How do business credit cards work?

A business recognition tease is intended rigorously for purchases related to an administration – it is not intended for personal use. There are two extra differences between a clientele credit circuit board and a personal recognition card. First, according to NerdWallet, business recognition cards are monitored and reported in a different manner than personal recognition cards. Personal recognition card accounts are reported on a monthly basis to the major consumer credit chest of drawers : Experian, Equifax, and TransUnion. however, depending on who the credit rating card issuer is for your business credit wag, the issuer may provide reporting to commercial recognition bureaus and possibly consumer recognition agency, excessively. The second extra difference between commercial enterprise recognition cards and personal cards is that business recognition cards typically have higher spending limits. This is due to the likelihood that purchases are probable to be for possible big-ticket items related to the business. Any type of bonuses offered are probable to be geared for commercial consumption, excessively. For example, clientele recognition cards may advertise bonuses such as airline miles or travel discounts .

What are the benefits of business credit cards?

There are four benefits a business credit wag provides. First, business credit cards can be helpful for tax-deduction purposes. Credit card statements can make it easy to track business expenditures. Second, you ’ ra keeping your personal credit freestanding from your business credit. If for some argue, your occupation citation score decreases, it should not adversely affect your consumer credit score and frailty versa. Third, typically with a business credit card, the spend limit is likely to be higher than the spending specify set by poster issuers on consumer credit card accounts. fourth, money management is a benefit of having a commercial enterprise credit card. Cash stream is important for any business, but specially for startups. commercial enterprise owners can better manage their cash flow using a business credit card to make and pay off expenses, such as newly equipment and inventory .

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