Tuesday, March 21, 2023

How To Apply For Credit Card For Business

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Things To Be Aware Of

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

While business cards can be helpful, there are a few things to be aware of.;

First are the fees youll pay. In addition to interest on purchases, you may be charged foreign transaction fees, transfer fees, or late payment fees. Youll want to pay attention to when billing cycles fall so you always make your payments on time.

Keep an eye on your spending limits so you dont have your credit card declined when trying to make an important purchase that your business needs.

Its a good idea to separate your personal finances and business finances, so always pay your business credit card debt from your business bank account to keep accounting simple.Looking for the best card for your business needs? Navs credit card marketplace has the best business credit cards and reviews. Check it out!

You Can Reap The Rewards

The rewards for business credit cards go beyond just the sign-on bonus. Every credit card comes with a different assortment of perks and rewards.

For some cards, this means cash rewards, or waiving the annual fee for the first year; others won’t charge an APR until after 12 months.

For other cards, this means points toward hotels, restaurants, gas stations, cellphone providers, and airlines. Some have partnered with other brands that will match points earned on a spend, which incentivize you to spend more with the card on specific items.

When you’re considering which card is best for your business, you’ll want to think about which perks you’ll use most. Are there any that would be particularly helpful for your business? Some perks are nice-to-have but won’t make a dent in your savings.

For example, you could get points at hotels, but you know you aren’t planning on any business travel for at least a couple years. In this case, the credit card reward may not be worth much to you.

On the other hand, what if you’ve noticed more business opportunities in a neighboring town? That could mean that a reward with gas points goes further in your favor.

The Business Platinum Card From American Express

  • 5X Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • 1.5X Get 50% more Membership Rewards® points. That’s an extra half point per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.
  • 5X Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • 1.5X Get 50% more Membership Rewards® points. That’s an extra half point per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.

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Check Your Personal Credit

Your personal credit history matters when it comes to business credit cards because if your business cant afford to pay your credit card balance, youre typically on the hook for making payments from your personal accounts. This means its the responsibility of the business or the business owner to pay what is owed on the credit card, even if the business doesnt succeed.

Take a look at your credit report and your credit scores. You can get one personal credit report per year from each of the three main credit bureaus, Equifax, Experian and TransUnion, at annualcreditreport.com. You can also keep an eye on your credit score for free using the NerdWallet app.

As with personal credit cards, your options become more numerous once your credit score is in the good or excellent range, typically a FICO score of at least 690. If your score isnt quite where youd like it to be, like making all bill payments on time and charging a low percentage of your total overall credit limit each month can help over time.

If you need to finance a large purchase, look for a card with 0% introductory APR on new purchases.;The Blue Business® Plus Credit Card from American Express charges an intro 0% intro APR on Purchases for 12 months, and then the ongoing APR of 13.24% – 19.24% Variable APR. The $0 annual fee and ongoing rewards make it an easy card to keep carrying once the introductory interest rate period ends. Terms apply .

» MORE:NerdWallet’s best 0% credit cards for business

Earn $750 Bonus Cash Back After You Spend $7500 On Purchases In The First 3 Months From Account Opening

FREE 8+ Sample Credit Application Forms in PDF

For new businesses and first-time applicants, here are some things to know about getting approved.

  • It is dependent on your personal credit. Since you don’t have any business history yet, the banks will look at your personal credit history and score. The better your personal credit score is, the easier it is to qualify.

That won’t come into play as much for an established business, since you would have a separate business credit history built up.

Getting a business card with bad creditsecured credit cardprepaid card

  • You probably need to sign a personal guarantee. This is a clause that states that you, personally, will repay any business debt. Banks often need this insurance that someone will be responsible. If you stop making payments on the card because the business fails, the bank can come after you personally to recover the balance owed.
  • Do not lie on the application. Even if you need to put “0” as the revenue, it’s better to do that than lie. You may get a phone call asking for more information. Be prepared for questions about the nature of your business and how much you expect to make.
  • Just tell the truth that you’re in the startup phase. Explain why you want the business card now. For example, maybe the reward structure will really help you, and that you want to keep expenses separate.

    How do you obtain business credit?

  • Form an LLC or incorporate to help separate your personal credit from that of your company.
  • Apply for an EIN number. .
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    Business Credit Card Application Requirements

    When applying for a business credit card, you’ll be asked for both personal and business information. Commonly requested business information includes:

    A tax ID number: If you don’t have a separate tax ID for your business , you can use your Social Security number.

    The business’s name:;If your business has a legal name, put it here. Freelancers, consultants or gig workers without a “named” business can just put down their own name instead.

    The legal structure :;This is where you identify how your business is organized. Most small businesses in the United States don’t actually have a formal legal structure like a partnership, corporation or LLC. They’re sole proprietorships, meaning they are owned by a single individual who essentially “is” the business. Sole proprietors can qualify for business credit cards just like any other businesses.

    Address and phone number: Provide the address and phone number for your business, if it’s separate from your own. If you don’t have a business location or a separate phone line for business, your home address and personal phone number will do.

    The date you started your business:;This one is pretty straightforward.

    Total annual revenue for the business:;Revenue is the money your business brings in. It’s not the same as profit, which is revenue minus expenses. It’s possible that you might not have any revenue as a new business. If that’s the case, you can put $0 on your application.

    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.

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    Signs You’re Ready For A Business Credit Card

    Maybe you’re just getting started. Or maybe you’ve been in business for some time. Whatever the case, when you’re deciding how to get a business card, “Am I ready?” is a logical question.

    When it comes down to it, no one can really tell you whether or not you’re ready for something as a business owner. Knowing when to take steps toward a business’s goals is up to each business owner personally.

    That said, there are some general indications that you may be prepared to apply.

    Does My Business Credit Card Report To The Business Credit Bureaus

    How To Apply For Business Credit Cards

    Most business credit cards available typically use your personal credit to approve you. If you’ve applied for a business or corporate card that requires your Social Security number, your card’s history will not be reported to the business credit bureaus. To build business credit, look for business cards that don’t ask for a personal guarantee.

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    Wait Before You Apply Again

    If you were denied for a card, dont start applying for other cards right away because this could negatively impact your credit score. Wait until you know why you were denied and start making positive changes to improve your chances of being approved for the next card. When youre ready to apply, go for a credit card that fits your credit profile.

    The Best Chase Business Credit Cards

    Chase is not only one of Americas largest national banks, it also has a plethora of business credit card options and can be an easy and simple solution for existing Chase business banking customers as well as small businesses looking for a bank with a large national presence. All Chase business credit cards are on the Visa network, which has one of the largest payment networks in the world and gives you plenty of flexibility when making purchases in the U.S. or abroad and Chase offers several co-branded credit cards with popular airlines like United and Southwest to round out its standard business credit card offerings.

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    Know Your Your Credit Score

    Whether or not you get approved for a business card can be widely based on your creditworthiness. So before you apply, its a good idea to conduct an audit of your personal credit score. Most issuers will require a good credit score , while others may even require an excellent score . Although there are a small number of cards that require fair credit , just like a personal card, you may increase your chances of getting approved for a business card with a higher credit score.

    Ink Business Preferred Credit Card: Best For Travel Insurance

    Free Printable Credit Card Application Form and How to ...

    Annual fee:;$95

    Current sign-up bonus:;Earn 100,000 bonus points after you spend $15,000 on purchases in the first three months of account opening. Based on;TPGs valuations, this bonus is worth $2,000.

    Why we like it:;If you spend a lot on business travel or social media advertising, youll be able to keep earning significant points with the;Ink Business Preferred card;after the sign-up bonus. The card earns 3x bonus for the first $150,000 in combined travel, shipping, internet, cable, phone services, and advertising purchases made on social media sites and search engines each account anniversary year.

    TPGs most recent;point valuations;peg the value of Chase Ultimate Rewards points at 2 cents apiece, so youll get a fantastic return of 6% on purchases in these categories. If you spend the full $150,000, youll take home 450,000 Ultimate Rewards points .

    You also get great value out of Chase Ultimate Rewards points by;transferring;them to;10 airline and three hotel loyalty programs. Plus the card gives you 25% more value for the points you earn when you redeem them for travel at a fixed value in the;Ultimate Rewards portal, a perk also available on other;Chase credit cards.

    Standout benefits:;

    Annual fee:;$295

    Current welcome offer: Earn 70,000 bonus points after you spend $10,000 on eligible purchases in the first three months of account opening. Based on TPGs valuations, this bonus is worth $1,400.

    Standout benefits:

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    Wait For Your Business Credit Card In The Mail And Use It Wisely

    If youve been approved, all you need to do is wait for your card to arrive in the mail. If you applied online, most credit card companies will mail your card within seven to 14 business days. Once you receive your business card, activate it and start using it wisely.

    • Carefully review the terms of any related rewards program so you can reap the maximum benefits of your business card.
    • Avoid mixing personal and business-related expenses on your business credit card. Doing so will help you when its time to sort out your accounting information during tax season.

    What Information Do I Need To Apply

    Applying for a credit card with us is easy, but youll need to provide some important details first:

    • Full legal name and date of birth
    • Home address, phone number and email address
    • Current and previous employers
    • Social Insurance Number
    • Information on other credit cards you hold

    Missing these details could delay the approval process or result in a denial. If youre unsure of how to answer a question on your application, call us at .

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    How To Build Your Business Credit In 5 Simple Steps

    Good business credit is essential to help your company weather financially challenging times. Here’s how to build business credit in five steps.

    | Topic: Finance

    Businesses need cash to run and grow. Unfortunately, cash is often hard to come by, making it necessary for business owners to find funding solutions. More than one-third of small businesses sought financing in 2020. Based on the statistic, it’s likely you’ll need to borrow at some point to keep your business running. As with personal credit, a business needs to establish good credit.

    Building business credit is essential to show creditors that a company is capable of paying its bills and debts. However, many business owners struggle with how to build credit. Last year, 30% of small businesses that applied for credit were denied.;

    Similar to personal credit, your business credit score can affect whether you’re approved for a loan or business credit card. Three business credit bureaus score companies between 0 and 100. You may be familiar with Equifax and Experian — they also measure personal credit scores. The higher the business credit score, the more likely your company will qualify for a line of credit or financing.;

    Who Is Eligible For A Business Credit Card

    How to apply for a business credit card

    Even if you don’t run a business full time, you still may be eligible to apply for a business credit card. If you have a side hustle delivering pizzas or ride sharing, do some freelance work on the side of your main job, or own and manage rental properties, you qualify as a business and can apply for a business credit card.

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    Decide Which Business Credit Card Is Right For You

    There are a variety of options for business credit cards on the market, so before you can actually apply for a business credit card, youll need to explore your different options to determine which card is best for your business.

    How do you know which business credit card is right for you?

    Ultimately, the right credit card for your business will be one that you think youll qualify for, that has the features and rewards youre looking for, and that will help you achieve your financial goals.

    With this in mind, here are some features to keep in mind as you sort through your choices:

    The Best Business Credit Cards For Travel

    If youre traveling often for your business and have a good personal credit score, it makes sense to consider a travel rewards credit card to earn points and perks or cashback that make life on the road that much easier. Popular travel rewards include:

    • Points or miles that can be redeemed for flights and/or hotel rooms
    • Bonus points for purchases in specific spending categories
    • Free checked bags on flights
    • Priority boarding
    • Collision damage waiver when you rent a car

    In recent years, travel perks from major co-branded credit cards have lost some of their luster as mergers and rewards program rebrands and restructurings have eliminated some of the perks road warriors know and love. For example, across most major travel cards the fares and room options available for free or at a discounted rate when using points have become fewer and fewer and the points dont go as far anymore. However, business travelers can still benefit greatly from the rewards of a travel card, especially if other business rewards cards dont offer cash back or rewards points for purchases in categories where you spend often.

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    There Are Business Credit Cards For Different Types Of Credit

    There are all types of businesses with all types of credit profiles, and theres a credit card for each one. For example, the Petal® 2 Cash Back, No Fees Visa® Credit Card is ideal for those looking to build their credit. If your credit is good or excellent, consider the CitiBusiness® / AAdvantage® Platinum Select® Mastercard®.

    Youre 3x More Likely To Get Approved For A Business Credit Card With Matchfactor

    How to Apply for the Lowes Business Rewards Credit Card

    Instantly see your top options for business loans and credit cards based on your business needs using Nav’s MatchFactor.

    Business and personal credit cards may look similar, swipe the same, and may even offer similar terms and rewards as personal credit cards, but business credit cards have a few distinct differences that can trip up a new business owner looking for a credit card.

    Lets look at a few important things to consider when looking for the right business card.

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