Our guide on how to get a business credit card will walk you through the process, from checking your credit scores and researching options to choosing the card that best suits your needs and applying for the card. We also include some of the common business credit card requirements and our card recommendations.
Step 1: Check Your Credit Score
It is important to first check your business credit score and any outstanding loans Outstanding loans usually require a personal guarantee, especially when funding is not secured with any type of collateral. Your credit score will be impacted if you are unable to pay the agreed-upon payments on time. that you have before applying for a business credit card. Card issuers typically look for businesses with credit scores ranging from 300 to 850.
If you don’t have a solid business credit history, rest assured that most card issuers look into your personal credit history to determine whether you qualify for their business credit cards. They may also consider your company’s revenue, industry, and monthly expenses in judging your ability to repay.
The most favorable terms—low ongoing annual percentage rates (APRs) and large credit limits—are reserved for small business owners with excellent credit (at least 750). Owners with credit scores below 670 can apply for a business credit card for fair credit. However, those cards typically charge high APRs and don’t offer the best rewards.
Step 2: Research Your Credit Card Options
Once you know your credit score, research how business credit cards work and their existing rewards program to find the one that best fits your needs. There are three major things that you should consider when choosing a business credit card—-namely reward structure, financing offers, and fees and repayment terms.
While there is a lot to research, each factor plays a crucial role in helping you decide which card would benefit your business most. A solid mix of rewards and additional perks typically determines which card is the one for you.
If multiple cards are calling your name, compare business credit cards side-by-side to help understand which one checks the most boxes for your business.
Step 3: Choose a Type of Business Credit Card
There are several types of business credit cards that you should consider for your business. Below are the most common types of business credit cards available:
- Cash back rewards business credit cards: These enable the business owner to earn cash back rewards on most spending categories, and some cards offer a higher cash back reward on selected spending categories. You can redeem your earned cash back as a statement credit and on gift cards, among others.
- Points rewards business credit cards: Unlike cash back business credit cards, these cards let you earn points instead of cash back. You can use your points for rebates on both hotels and airline tickets.
- Miles rewards business credit cards: Some cards let you earn miles rewards, which is ideal if you travel for business frequently. You can use points to redeem airline tickets from any participating hotel and airline partners.
- 0% introductory period business credit cards: There are cards that offer a 0% introductory period on purchases and/or balance transfers for up to 18 months. While this can be helpful if you are looking to finance large purchases or make a significant transfer, these cards do not offer rewards.
- Fair business credit cards: Within the list of available business credit cards, there are very few unsecured business credit cards that can be availed with a fair credit standing. Note that these cards require you to pay in full each month.
- Secured business credit cards: These cards first require you to make a security deposit, which can be the same as, or higher than, your desired credit limit. While the majority of these cards do not offer rewards, there are very few that do.
Step 4: Apply for a Business Credit Card
Once you choose a business credit card type, it’s time to fill out an application. You can apply online or in-person at a branch. In some cases, introductory rewards may be different in branch than online.
The basic information you’ll need to fill out on your application includes:
- Business name and address
- Industry type
- Annual business revenue
- Monthly business expenses
- Business structure and description
- Federal tax identification number (FTIN)—Social Security number for sole proprietors; employer identification number (EIN) for limited liability corporations (LLCs), corporations, and partnerships
- Estimated monthly spending on your credit card
Note that when getting a business credit card, getting approved or disapproved could take anywhere from seconds to weeks. Once you’ve received approval, which can be instantly for online applications, you’ll have to wait for the issuer to send you the card. You can typically expect to receive your card within seven to 10 business days.
You may want to see our list of the best instant approval business credit cards, which has cards that provide an online application option and an approval decision within minutes.
Common Business Credit Card Requirements
While some people think you need a full-time business to qualify for a business credit card, that’s not always the case. Issuers may approve you even if you sell items on eBay or run a side business in addition to your full-time job. Learning this and other business credit card requirements, such as minimum personal credit score, will help you apply quickly and increase your approval odds:
- Personal credit history and score: Card issuers will evaluate your credit score, which is a snapshot of how you manage, use, and repay your credit or debt. Remember that the best business credit cards typically require a personal credit score of at least 670.
Payment history and the amount you owe make up 65% of your personal credit score. You can improve your credit score by paying your bills on time and managing the amount of available credit you use. Your credit utilization ratio, which is how much credit you use about your credit limit, should be below 30%. If you have a card with a $1,000 limit, that means keeping balances below $300. - Personal guarantee: Most business credit cards require a personal guarantee, which means you—the business owner—will become personally liable for the business’ debt if the company fails to repay. If your card requires a personal guarantee, staying on top of business payments is crucial to ensuring you don’t jeopardize your finances.
- Business name: Issuing banks require you to provide your business legal name when applying for a business credit card. While sole proprietors only need to provide their legal first and last names, corporations, LLCs, and partnerships are required to use the business name registered with the state.
- Business phone number and mailing address: If you work from home and don’t have an official office, you can use your home phone number and address.
- Industry type: Some business credit card applications will require you to indicate the industry your business operates within. Choose the one that most closely applies to your business, like banking, finance, health, or TV production.
- Legal entity or business structure: All applications and issuers will ask you to provide your business structure, such as a corporation, partnership, nonprofit, LLC, government organization, or sole proprietorship. Some issuers will also require you to indicate if your business has beneficial owners Beneficial owners are those other than yourself who own at least 25% of your company. If there are any, you’ll likely be required to provide their name, home address, date of birth, Social Security number, and percent of ownership. if you own a corporation or partnership.
- FTIN: Your EIN is also known as your FTIN, which is a nine-digit number assigned by the IRS. You’ll typically use your EIN when you apply for a business credit card, allowing the issuer to verify your business. However, if you don’t have an EIN, which typically applies to sole proprietors and freelancers, you can use your Social Security number.
- Annual business revenue and monthly business expenses: Issuers typically use your business’s annual revenue and monthly expenses as a way to gauge your ability to repay your credit card bill every month. Additionally, these figures may help determine your credit limit.
If your business has little to no revenue, you may still qualify by using your personal income information to evaluate your application. The key is always to tell the truth on your application and be prepared to provide documentation about your business if asked.
Other information that may be considered optional but may be asked by some card issuers include the length of time your business has been in operation and personal income information.
Using Your Card
When you activate your card, you can begin using the card to fund your business and to earn both introductory and ongoing rewards.
- If your card includes a 0% introductory period, you can avoid interest charges during this time after making a large purchase. Some cards may even offer this interest-free financing period on balance transfers, too.
- If your card doesn’t have a 0% introductory period, it’s a good idea to pay your balance in full each month. If you carry a balance, the interest you will pay will quickly overtake the value of any ongoing rewards you receive.
Following business credit card tips, like managing your balance wisely, will also help you maintain or improve your credit score. This is because your payment history and credit use are major factors in determining your score.
Best Business Credit Cards
Once you are ready to apply, consider our recommended business credit cards.
Business Card Type | Card Name | Features | It Is Our | |
|---|---|---|---|---|
Cash back | American Express Blue Business CashTM |
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Points rewards | American Express Business Platinum Card® |
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Miles rewards | Capital One® Spark® Miles for Business |
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0% introductory period | U.S. Bank Business Platinum Card |
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Fair | Capital One Spark Classic for Business |
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Secured | Valley Visa® Secured Business Credit Card |
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Frequently Asked Questions (FAQs)
Yes, business credit cards can be a great source of funding for your business, especially if you are not yet qualified to secure a business loan. These can be used as immediate working capital when needed, and most of the cards offer rewards on your business purchases. Read our guide to learn more about using credit cards to fund your business.
Although sole proprietors won’t have an EIN, they can apply for a business credit card using their Social Security number. The application process is no different than if your business was registered as a corporation, partnership, or LLC. You can typically apply online and receive a decision immediately.
To obtain business credit, form an LLC or incorporate your business and apply for an EIN. Next, open a business bank account and business credit card to separate your business and personal finances. This will also establish business credit with the main credit bureaus. Be sure to pay all your bills on time to build your credit history and maintain a good business credit score.
When getting denied, consider taking the following actions:
- Understand your credit report
- Ask the issuing bank to reconsider your application
- Dispute any inaccurate credit information
Our guide on the most common reasons you may be denied a business credit card contain actionable steps you can take that can help improve your chances of getting your desired business credit card.
Bottom Line
Learning how to apply for a business credit card isn’t a difficult process and knowing how to navigate the application process can help improve your approval odds or chances of increasing your credit limit. Your industry type, card usage, your credit score, and your business’s annual revenue typically determine which card is best for you.
