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A small business credit card can be a valuable tool to help you start and grow your business. The good news is that applying for a card and getting approved is a relatively simple process as long as you follow the right steps.
We’ve created a step-by-step guide to help you find and apply for the right credit card for your business. Keep reading to learn how to apply, as well as a few best practices that will get you started on the right foot and make it easier to get approved.
How to apply for a business credit card
Step 1: Determine your eligibility
Before you apply for a business credit card, it’s important to understand the eligibility requirements and whether you’re likely to be approved.
First, the good news is that businesses of all kinds can qualify for business credit cards, including:
- Freelancers
- Sole proprietorships
- Partnerships
- Limited liability companies
- Corporations
A good starting point is checking your personal credit. When you apply for a small business credit card, the card issuer usually takes your personal credit score into account. Though some cards are available to borrowers with fair or poor credit, most require good or excellent credit.
You typically don’t need years of business history and a high revenue to qualify for a business credit card. Many entrepreneurs are able to qualify when they’re just getting started. However, with a limited business history, your application will depend more heavily on your personal income, assets, and credit.
Step 2: Compare the various card types
Once you’ve figured out whether you’re likely eligible for a business credit card, spend some time comparing your options. Just like personal credit cards, there are lots of different business cards on the market with different features and benefits. It’s important to find the one that best aligns with your business and your needs.
For instance, if you’re planning to make a large purchase or need to pay off an existing balance, you may want a card offering a 0% introductory APR on purchases and/or balance transfers for a certain amount of months after account opening. If you travel regularly, you may prefer a card that offers travel rewards and also travel benefits like no foreign transaction fees, annual travel credits, trip delay/cancellation coverage, or airport lounge access.
You might also want to consider your day-to-day business expenses. Many issuers offer free employee cards and the ability to easily manage limits for each, which can be helpful if you’ll have multiple employees with spending privileges.
Lastly, consider whether the card offers cashback rewards, bonus points, or bonus miles on your normal business spending. For instance, if your employees drive a lot and a certain card’s rewards program offers bonus points at gas stations, it could be a good fit for you. Or if you know you'll be spending a lot at office supply stores, then you'll want a card that rewards you for that.
Compare both earning and redemption options to see which product is the best fit for you and your business, and don't forget to evaluate any available welcome offers too.
Ultimately, no two businesses have the exact same situation and needs, so there’s no one credit card that’s right for everyone. I run a small, lean business online from my home. The right business card for me is very different from the brick-and-mortar small business down the street with multiple employees.
Step 3: Gather the required information
To apply for a business credit card, you’ll need lots of information about both yourself and your business. It’s easier to fill out your application if you gather this information ahead of time. You’ll need:
- Your legal business name
- Your business contact information
- Your business type
- Your business federal ID number
- Your Social Security number
- Your number of years in business
- Your business revenue and expenses
- Your number of employees
Step 4: Complete your application
Once you’ve gathered all the necessary information, you can go ahead and complete your application. This process really only takes about 10 minutes. Keep in mind the application will be a bit more in-depth than what you’re used to with personal credit card applications since you’re providing information about both you and your business.
Step 5: Wait for a response
Depending on the information you provide, your application for a business credit card may be approved instantly, but that’s not always the case. If you get a message like “We need more time to review your application,” don’t panic! This is very common, especially when you’re applying for a Chase card.
In most cases, you’ll still hear back pretty quickly about whether your application has been approved or not. You can always call to check on the status of your application in the meantime. But if you do this, be prepared to answer follow-up questions about your application.
Once your application is approved, you’ll usually receive your business card in the mail within a week or two.
Business credit card application best practices
1. Get started with your Social Security number
If your business is new and you don't yet have an EIN (an Employer Identification Number issued by the IRS), that's ok. Most card issuers are new business-friendly and want you as a client for the long haul. They recognize we all have to start somewhere! In that case, you’ll apply with just your Social Security Number (SSN) instead.
Most small business credit cards have separate spaces to enter your SSN and EIN on the application. Depending on the application, you may be given the option to provide one or the other, or you may indicate that you don’t have an EIN. You’ll still complete the rest of the application as normal.
It’s worth noting that some card issuers may only allow you to apply without an EIN if you have a certain business structure, such as a sole proprietorship or a single-member LLC.
2. Answer the revenue question conservatively
Don’t oversell your business income in the hopes of getting a higher credit limit or improving your chances of getting approved. The card issuer may verify this information, and you definitely don’t want to get caught in a lie.
The card issuer may tell you what number they want when you’re applying. For example, the Capital One business credit card application specifies that you should share your business revenue from the previous year. If the application doesn’t provide specific guidelines like this, provide either your previous year’s income or your average income.
3. Space out your applications
It's exciting to be able to apply for business credit cards, but pace yourself. Card issuers look at your credit report when reviewing your application so it's important to understand the issuer's rules for how often you can apply.
For example, if you are applying for a Chase business card because you want to earn the valuable Chase Ultimate Rewards, you must fall under 5/24 (you cannot have opened more than five applicable credit cards in the last 24 months) and 1/30 (you cannot have been issued any Chase credit card in the last 30 days.) To be extra safe, I suggest waiting at least 60 days between Chase applications.
Applying for a credit card can also temporarily lower your credit score. If you’ve recently applied for a different card and your credit score took a hit, it may be worth waiting to apply for a new card until your credit bounces back.
4. Understand the personal guarantee
When you apply for a small business credit card, especially when you’re just getting started, you’ll also have to personally guarantee the card. In other words, if your business can’t repay the credit card, you, as an individual, will have to do so.
Unfortunately, if you can’t repay the card, you could face some severe penalties. You could face late fees, a major hit to your credit score, having the debt sent to collections, or even being the subject of a lawsuit.
We don’t say this to scare you but to make sure you understand that any debt your business takes on is your responsibility — it’s not a decision to make lightly.
You're now ready to apply for a business card
Browse our list of the best business credit cards and select the one that makes the best sense for you. Whether your business is a startup or you've been up and running for a while, you'll be able to find the right card for you in this list of credit card offers. Good luck with your business!
FAQs
What is the easiest business credit card to get?
There are many factors that go into applying — and getting approved — for a business credit card. Your personal creditworthiness and company history may both influence that decision, for instance, making it easier or harder to get the business card you want.
With that said, you might want to check out the Capital One Spark Classic for Business. This rewards credit card requires only a fair credit score rating, which means you can still get approved even if you’ve defaulted on a loan in the past five years or if you have a limited credit history.
This card is a business card with no annual fee, and it offers employee cards at no additional cost. It also earns you 1% unlimited cash back on every purchase for your business, plus 5% cash back on hotels and rental cars booked through Capital One Travel.
How do I pick the best business credit card?
If you’re looking for the best business credit card, you’ll want to find the one that most adequately fits your business’ needs. To do that, you’ll need to look at how and where your business spends money and determine which card perks would be the most lucrative to have.
The best way to pick the best business credit card is to identify your business spending habits and needs and choose a card that most closely aligns with them. That could mean choosing between a cash back versus travel card, one with bonus categories versus flat-rate rewards, one with or without a 0% introductory APR, and more.
Can I get a business credit card with bad credit?
Although having a good credit score will open the door to more credit card products, you may still be able to get a business credit card even if you have bad credit.
Each credit card issuer is different: some may require you to have a healthy business credit history. Some allow you to apply with only your personal credit history. That means that the responsible usage of personal credit cards could help you eventually get a business credit card. Other card issuers may pull your personal credit score in order to approve your application, but then only report to business credit bureaus moving forward.
Depending on your personal and business credit scores, it can be important to find a card with requirements that match your credit history. For instance, some card products require only a fair credit score in order to be considered; others require excellent credit.
Typically, the better your credit, the easier it is to get a new card. And you may find you are only offered a low credit limit if you have a low credit score. However, this doesn’t mean qualifying for a business credit card is totally out of reach just because you have bad credit.
If your credit score is too low to qualify for any traditional business credit cards, consider applying for a secured credit card — either business or personal. Secured credit cards generally have lower credit requirements since you pay a security deposit when you sign up for the card. The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card is one example of a secured business card.
How do I build credit for my LLC?
The first step in building credit for your LLC is obtaining a business tax ID, or EIN (employer identification number), from the IRS. You will also want to obtain a DUNS number by registering through Dun & Bradstreet. Having both is helpful, as some lenders will use your EIN to identify your business when pulling a credit history, whereas others will pull using your DUNS.
In order to build business credit, you’ll also want to open and utilize a dedicated business bank account. Getting a good business credit card and managing it responsibly is a great next step, as is regularly checking and monitoring your score through the three business reporting bureaus (Experian, Equifax, and Dun & Bradstreet).
Lastly, you may want to work with vendors that report your payment history to these three agencies. By making payments on time (or even early), you can grow your business’ Paydex score and, in doing so, open the door to a new lender or trade line of credit.
As with a personal credit history, it can take both time and dedicated effort to build credit for your business. Luckily, you may be able to rely upon your personal credit until your business has had the chance to grow a healthy credit history.
Can I get business credit cards for my employees?
Most business credit products allow cardholders to request cards for authorized employees, who can then use the card to make business purchases according to set spending limits. Depending on the credit card, these additional cards may be free or you may be charged an additional annual fee for each.
These business credit card accounts treat employees as authorized users. Although employees spend individually, the company is responsible for charges at the end of the day.
Up to 5% Cash Back
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Current Offer
Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening
Annual Fee
$0
Rewards Rate
5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; and 1% cash back on all other purchases