Is It Possible To Get a Business Credit Card with a Business

Many users have been asking, “Is It Possible To Get a Business Credit Card with a Business?” Yes, it is very possible for you to get it with a business. And I am going to show you how you can simply get a business credit card. All you just need to do is to read and follow all the instructions that have been given to you in this article.

Is It Possible To Get a Business Credit Card with a Business

Is It Possible To Get a Business Credit Card with a Business

Whether your business is simply a booming startup or even a booming institution, a business credit card can offer many benefits. Not only do these cards simply offer the opportunity for higher credit limits than you might get with a consumer card, but a separate card unrelated to personal accounts can then also help keep records organized for tax season. Here are a few helpful things to keep in mind while you are considering the best credit card for your business needs.

How Do Business Credit Cards Work?

Credit cards for businesses sometimes seem quite similar to personal credit cards in terms of the perks and reward structures, but many of them offer higher spending limits and also improved rewards for business-specific categories.

Business credit cards can even include business-focused features and tools to help track spending across various categories or simply by employee cardholders. With most business cards, expense information remains available for download and can also be imported to the accounting software your business uses.

Your business does not simply need an Employer Identification Number (EIN) for you to be able to apply for a business credit card. The EIN is also sometimes referred to as the tax ID number for a business; it’s comparable in some ways to a Social Security number (SSN) for a person. Especially for businesses without an established credit history, an owner’s SSN and also borrowing history is often used when determining creditworthiness. However, if your business has an EIN, you can then include it when applying for a business card.

The Benefits of Business Credit Cards

Here are some benefits of business credit cards below:

Higher Credit Limits

It makes sense because credit card issuers set credit limits based on a variety of factors, including your credit score and even your income because the same is taken into account for a business. The sooner your business simply starts building its own credit history, the easier it will be to increase spending limits and also request loans for higher sums.

This is especially very helpful for small businesses with more financial constraints. It is even much easier for you to then make large purchases such as bulk inventory and also material, shipments, or travel expenses with a business credit card.

A higher spending limit can also allow you to make more purchases in a single statement period even without maxing out the card. This avoids a large increase in your credit utilization—the ratio of your credit card’s balance to its assigned spending limit.

Building Business Credit

Why would a business itself need a credit score? Like individual consumers, businesses have financial profiles, which can over time naturally develop a history of spending and also revenue patterns.

Getting a business credit card and then using it responsibly can then simply help you establish and build a business credit score—increasing your business’s credibility and even reliability in the eyes of additional credit card companies, banks, and also investors. A business, like any individual, will then also benefit from lower interest rates when a business credit bureau simply reports a clean record and also a steady payment history.

How to Get a Business Credit Card

Now you can apply for a business credit card very easily and simply, but, like any financial decision, it requires diligent research. You should be able to then consider a few important points before filling out online applications for a business credit card.

Determine Your Eligibility

Your business is simply not required to be incorporated in any way to then qualify for a business credit card, and even the size of your company does not even matter for basic card eligibility. You may be able to apply for a business credit card even if the expenses you plan on paying with the card are for a side gig or if you are the sole proprietor of a small freelance business.

However, this does not guarantee that you will receive the benefits-packed, reward-earning business card of your dreams. The first step for you in applying for a business credit card is determining which card you have a realistic chance of qualifying for. Your personal credit may then make this determination if your business does not already have established credit.

The most important factor for you in applying for any credit card is your or your business’ credit history. As a business owner, credit card companies will nearly always want to verify your personal credit score, so you should then ensure you maintain healthy spending habits on existing personal accounts. This will then ultimately determine which cards you are likely to receive approval for.

Major assets and even commercial income can even help qualify your business for better cards. Do not expect approval for a high-end, benefit-heavy business credit card if you are only making a few dollars with a side hustle. You will then likely need to show substantial income to obtain the best business cards and also get the highest credit limits.

Gather the required information.

In addition to the personal information you would normally need to provide for any credit card application, a business credit card application will also ask for proof of your business’s existence. Details might then include your business name, registered address, annual revenue, number of employees, estimated spending needs, and also an employer ID number (your own SSN can usually be substituted in the event your business doesn’t have an EIN).

The bank or card issuer will also ask you to fill out the above information regarding the nature of your business and may even have follow-up questions for you during the verification process. But you should be honest and also be able to provide any documentation requested. Even if your new business’ current income is still low or nonexistent, it is good or better to disclose this and provide a business plan showing projected revenue.

It might even help to seek out cards offered by banks with that you already have a relationship—this can then make the application process more comfortable, efficient, and successful.

How to Get a Business Credit Card for a Startup

If you are launching a new business, getting a business credit card can be of help to assist you to manage startup costs and also track expenses. Plus, earning a welcome bonus and also rewards on your business spending can then be a good way to offset some of your costs.

However, if your business is not well established, you might be wondering how to best prepare so your application for a new card is not rejected. Here are some steps to set you up for success when getting a business credit card for your startup.

Research your options.

Start with your current bank and then see what options it offers. If you already have a business checking account, then getting a business credit card from the same institution can also be convenient.

However, if your bank does not offer what you need, shop around. When choosing a card, you should then look into benefits such as welcome bonuses, rewards, and even credit limits. Consider the annual fees, foreign transaction fees, and also interest rates. You should fully understand how each card works and also read through the terms and conditions carefully before submitting an application.

Before applying, check your credit.

Lenders still require your personal SSN in order to simply check your credit history. When you then provide a personal guarantee, you should remain personally liable for your business credit card balances and also employee transactions that could be fraudulent unless your lender provides a fraud protection benefit.

Credit card issuers will even naturally want to reduce risk. They will want to ensure you have to pay your bills in a timely manner and won’t even default on what you owe. The higher your credit score, the greater the likelihood you will remain eligible for better cards, higher credit limits, and also lower interest rates.

Apply Now For Your Business Credit Card

You will then need to collect several pieces of personal and business information to complete your business credit card application:

  • Legal business name, address, and phone number
  • Type of business and industry designations.
  • Legal business structure.
  • Federal tax identification number (your EIN and/or SSN).
  • Number of employees on payroll
  • Approximate annual business revenue.
  • Estimated revenue, as well as monthly expenses on the credit card.

We do not advise that you apply for more than one credit card at a time. It is then generally preferable to apply for the credit card that you want the most and are most likely to qualify for rather than applying for multiple cards at once.

Applications generate hard inquiries on your personal credit reports, which then temporarily lower your credit score—and also, multiple inquiries in a short span of time can even make you seem desperate for credit, leading to rejections.

How to Get Approved for a Business Credit Card

There is no way for you to guarantee approval on any credit card application, but there are some things that you can simply do prior to applying that should increase your chances of success:

  • Avoid maxing out any personal or business cards you already have.
  • Apply for new credit sparingly, to minimize hard inquiries on your reports.
  • Identify the correct business structure to list—for example, if you are selling handcrafts on Etsy or writing freelance articles online, you might be operating as a sole proprietor.

Responding to a preapproval offer, if you have one, may also help improve your odds. Once you submit a business card application online or over the phone, the issuer will then check your credit. After the credit check is now complete, cardholders deemed creditworthy by the lender might then see an approval.

FAQs

Can I Increase My Business’s Credit Limit?

Yes, it is very possible for you to request a higher credit limit on your card simply by calling your issuer. Some of the issuers also make it easy to request a higher limit through your online account. You might then also be able to request a temporary increase for a predetermined amount of time.

What Is a Credit Limit?

A credit limit is simply the maximum amount of money the credit card company will allow the cardholder to spend before paying down the card’s balance. The exception is if you get a business charge card, which can simply offer flexibility in the form of no preset spending limit.

How Do I Get A Business Credit Card If I Have Bad Personal Credit?

Options can simply exist for business credit cards even if you have bad credit. Just know that these are typically secured cards, meaning you will then have to put up a security deposit.

How long have you been in business to be eligible for a business credit card?

If you have been in business for three or more years, you might also qualify for a business credit card using your business credit score. More likely, though, you will be applying with your own Social Security number, and the issuers will also check your personal credit score.

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