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Can Anyone Apply For Business Credit Card

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Receive Your Card And Use It Wisely

How to Fill Out a Business Credit Card Application for American Express

Once approved, you should get your business credit card mailed to your business address within a couple of weeks. When you receive it, activate the card and commit to using it wisely, so you don’t run into trouble later on.

Review the terms and conditions carefully, plus the rewards program details if you get a rewards business credit card. This way, you can use the card correctly and maximize your benefits.

Now that you have a business credit card, only use it for business expenses and avoid mixing it with personal expenses. This will help you during tax time and keep your personal finances separate from the business.

Scotiabank Secured Credit Card

* No annual fee, no balance transfer fee* Interest: 16.99%* Minimum required deposit: $500

The no-fee Value Visa card is a great option if youre looking to transfer balances from other credit cards. Theres no fee for balance transfer, and the introductory APR is a low 3.99 percent for the first six months.

Who Can Apply For A Small

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A small-business credit card can help entrepreneurs or people with side hustles build business credit and keep their work and personal finances separate. Many come with seriously sweet benefits, too, such as higher sign-up bonuses and bonus rewards in common business spending categories like travel and internet access.

But many people who could benefit from a small-business credit card hesitate to apply because they’re unsure whether they would qualify. What counts as a business for the purposes of getting a small-business credit card? Are they only for incorporated businesses with a certain number of employees or minimum annual revenue, or can you qualify for one if you earn extra income walking dogs in your spare time?

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Employees Can Have Their Own Credit Cards

Most business card issuers allow cardholders to order credit cards for employees. Issuers may provide a few employee cards for free while other issuers may charge a fee per card.

Many cards allow the primary cardholder to oversee employee spending by setting spending limits, alerts for card activity and even card limits. Keep in mind that employee business cards may have joint and several liability, which means that the employee and business owner may be equally responsible for the cards debt.

What Are Secured Credit Cards Good For

Anyone Can Apply For a Business Credit Card

So why even get a secured card? If you have the cash-in-hand sufficient for a deposit, you could just use your cash, right? Well, maybe not. You cant use cash to purchase merchandise online, to make reservations, or even to pay some bills. Where a check or credit card is required, youll be out of luck if you dont have a bank account or a card.

If your poor credit prevents you from qualifying for a regular credit card, or if you dont yet have a credit history in Canada, you can still enjoy the convenience of paying for goods and services that require credit cards. You can also use that card to build that credit score so you qualify for bigger things in the future.

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Have A Positive Credit History

Good credit history will help you get approved for a credit card. The better your credit score, the more likely it is youll be approved.

Some credit card issuers only approve applicants who have spotless credit reports. Others will approve your application as long as your late payments arent in the past two years.

Having a negative credit history with a specific credit card issuer could keep you from getting approved by that same issuer. For example, if you had a charge-off with a prior Capital One credit card, you might not get approved for a new card from Capital One for at least one year.

How To Complete A Chase Small

All Chase business-card applications ask virtually the same questions, but if youre applying for an airline credit card have your loyalty account number on hand to put on the application. If you dont have a loyalty account before applying, you will be assigned one.

These screenshots are from an application for the Chase Ink Business Preferred.

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How To Get A Business Credit Card For Your Llc In 4 Steps

  • Check your credit score. Your personal credit score plays a big role in which business credit card you can get, but you dont need good credit to get a business credit card. You can check your latest credit score for free on WalletHub.
  • Determine which card would be best for you. The ideal business credit card will give you the best value in rewards and benefits, based on your business spending and your overall needs. Narrow down the choices based on rewards rates in your biggest spending categories and other card benefits, and then compare expected earnings after taking any fees into account.
  • Fill out the application. Youll need to provide details about the LLC on the application, such as its name, address, phone number, annual income, number of employees, years in business, and Employer Identification Number . Youll also need to provide some information about yourself, such as your Social Security number and personal income, among other things.
  • Wait for a response. You could get a decision instantly, or the card issuer may need a closer look at your application. Most credit card issuers make a decision on applications within 2 weeks, and if youre approved, your new card should get to you in 7-10 business days after approval. If you get denied for the card, consider calling the card issuers reconsideration line or looking into other credit card options.
  • How Long Does It Take To Get Approved For A Chase Business Card

    How To Apply For Business Credit Cards

    Sometimes an approval is immediate. Youll submit your application and within seconds, your approval will be confirmed.

    But other times, the bank may need more time to review your application, after which they may request additional information or documentation. Because of this, it can take anywhere from 7-10 days, or even up to 30 days, for the bank to make a decision.

    Our best advice is to be patient, offer any supporting documentation that you can, and if youre initially declined, call in and ask for your application to be reconsidered.

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    Youre Our First Priorityevery Time

    We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

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    How To Get A Business Credit Card

    Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

  • 4. Gather the info you’ll need to apply
  • Business credit cards can offer some advantages over personal cards, including potentially higher credit limits and sign-up bonuses and more detailed bookkeeping features for tax time.

    Applying for a business credit card is similar to the process for a personal card, with a twist. Here are some tips on how to get a business credit card.

    » MORE:6 major differences between business and personal credit cards

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    Do I Qualify For A Small Business Credit Card

    Qualifying for a small business credit card isnt difficult and usually doesnt require lots of paperwork. But the big question is, how can you qualify as a small business?

    There are a few ways to qualify as a small business:

    • You own a legal business. If you already own a business, you can apply for a small business credit card. You will be required to submit your Employer Identification Number and your Social Security number. Your personal credit report will be used to determine approval for a new credit card, so you should have good credit.
    • Youre starting a new business. Its important to keep track of your finances, including keeping your personal and business expenses separate. Small business credit cards are a useful tool for new businesses separating business and personal finances. Plus, the extra capital can help your new business grow! Most start-ups dont last long, so banks may look at new business applications in more detail since they pose a higher risk.
    • Youre already in business . Even if your business doesnt have a legal structure, you may qualify as a business and be able to apply for a small business credit card. If youre earning income from performing a service, working as an independent contractor, or selling goods for a profit, then youre operating a business. You dont need to worry about creating a full business plan or even thinking of a business name, because you are the business and business name is your name.

    What If You Really Dont Have A Business

    Best Small Business Credit Cards

    This makes things a little more tricky but it doesnt mean you cant get a business card.

    The definition of a business includes the words An attempt to make a profit.

    This does not mean that you have to currently be making a profit.

    If you rack your brain and cant think of any way that you currently have a business, you can still qualify for a business card.

    Are you planning on starting up a business in the near future?

    If so, you may be able to qualify for a business card by applying for a card BEFORE youve actually made a profit as a start-up.

    The banks will be more hesitant to give cards to start-ups than they will to already established businesses . But if you go in with a well thought out and convincing plan, you can oftentimes still get approved.

    A few things to make sure to mention when going this route are:

    Congrats! Youre now ready to apply for a business card. But how exactly do you do that? Its not difficult, though there are a few additional steps compared to applying for a personal card. Read on to find out the differences.

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    What’s Different About Ein

    First, a little refresher on run-of-the-mill business credit cards.

    If you were to sign up for a Chase Ultimate Rewards card, for example, youd have to provide both your EIN and your social security number. Youd probably also have to sign a personal guarantee in which you agree to be personally liable for your business credit card debt if your business is unable to pay it. From there, the card issuer does a hard check on both your business credit score and your personal credit history.

    EIN-only cards are different because they dont require you to sign a personal guarantee. With an EIN-only card, your company assumes full responsibility for the debt. And since youre not personally liable, your personal credit doesnt play a role in the approval process, and late payments on the card will be reported to only business credit bureaus .

    Other than that, theres not a whole lot of difference between regular small-business credit cards and EIN-only cards. You still have to pay annual fees, foreign transaction fees, and interest rates and the rewards are pretty comparable as well. You just dont have to deal with personal liability.

    Business Cards May Have Different Payment Terms Than Personal Cards

    Card issuers recognize that businesses dont always have cash on hand to pay for large purchases. Some cards offer extended payment options that allow the cardholder to finance large purchases with special terms. Cardholders may be able to pay off the purchase over a longer period of time without accruing interest or without accruing the cards full interest.

    Payment terms vary depending on the issuer and card. A business cardholder should call his or her card issuer to discuss payment options.

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    Business Credit Cards With No Annual Fee

    Youll also have to determine whether youre willing to pay an annual fee for extra rewards. While most business credit cards do come with an annual fee thats often waived during the first year, there are a few . These credit cards offer a lower rewards rate, such as 1% cash back on purchases, but you dont run the risk of spending more on fees than youre earning in rewards.

    Annual Business Revenue And Estimated Monthly Spend

    Who Can Apply for Business Credit Cards?

    With these basic business credit requirements out of the way, youll be ready to prepare some of the more involved information youll need to complete an application. This being said, then, youll need to report your annual business revenue and estimated monthly spend on the card.

    Essentially, the card issuer wants to know that youâll spend responsibly and that your revenue can handle monthly credit card payments. Additionally, a card issuer will likely use your revenue, as well as estimated monthly spend to determine the size of your credit line.

    Generally, the larger your annual business revenue, the more likely you are to have your business credit card application approvedâthe card issuer figures that the more money you have coming in, the less likely you are to fall behind on your bills, and therefore, you pose less of a risk.

    If youre looking for a business credit card for your startup, and dont have any revenue to report, the card issuer will consider your personal annual income instead.

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    Your Businesss Legal Name

    When youre applying for a business credit card, some of the requirements will be as simple as providing basic information about you and your companyâwhich includes your businesss legal name.

    If your business is set up as a C-corp, S-corp, LLC, or limited partnership, then youâll provide the name under which you registered your business with the state. If youâre a general partnership or sole proprietorship, on the other hand, then you can just provide your own legal name.

    Rule #: Take Advantage Of Welcome Offers

    Depending on the size of your business, you may put more spending on your business credit card than you would on your personal credit card. A number of business credit cards require some hefty spending requirements to earn big rewards. If your business spends thousands of dollars a month, take advantage.

    You could:

    • Earn 120,000 Membership Rewards points when you open the Business Platinum card after spending $15,000 on eligible purchases within your first three months of card membership. TPG values the full welcome bonus at $2,000.
    • Earn 100,000 Ultimate Rewards points when you open the Ink Business Preferred Credit Card and spend $15,000 on qualifying purchases within the first three months of card ownership. TPG values this bonus at $2,000.

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    Determine Which Rewards You Want: Cash Back Or Travel Points

    You can typically categorize credit card rewards in one of two categories: cash back or travel. Youll need to decide which will be more rewarding for your business. If youre looking for simplicity, a cash back card is probably your best bet. You can redeem your cash back as a statement credit or have it deposited into a bank account without having to worry about how to use rewards points. If you travel often, a points or miles card will likely be more advantageous. For a full list of pros and cons for each type of reward, read our comparison of cash back and points.

    Why Should I Learn How To Establish Business Credit

    Chase Credit Card

    If youre reading this, you already know that good credit is important for the future of your venture, but lets explore the benefits a bit more.

    A strong business credit score can help you secure better interest rates on loans, decrease instances where you need to prepay for a specific product or service, and secure better trade terms with important suppliers in your industry. In the long run, this will help you save money, keep cash flow liquid, and access the funds or assets you need to help your business grow. Adversely, having bad business credit can limit your ability to secure financing.

    Navs Small Business American Dream Gap Report found that nearly one in four businesses dont know why their loan applications are denied, yet businesses that understand their business credit scores are 41% more likely to get approved for a small business loan.

    Additionally, a big issue with financing a business is dealing with personal guarantees. A personal guarantee is a promise from a business owner that they are responsible for their businesss debt should the business be unable to pay the debt. 86% of businesses use their owners personal credit to fund their entrepreneurial dreams, and establishing business credit can help you draw a clear and important line between your personal and business finances and mitigate the need to sign a personal guarantee for business funds.

    This article was originally written on December 6, 2019 and updated on July 21, 2021.

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