Getting a business credit card can provide many benefits for your small business or side hustle. From higher credit limits to separating business and personal expenses, a dedicated business card offers conveniences that personal cards lack. However, the application process requires meeting certain criteria. Here’s what you need to successfully apply for a business credit card.
Personal Credit Score Requirements
Despite applying for a business credit product, your personal credit score is one of the primary factors issuers use to evaluate your application. Most require a good to excellent FICO score, generally 690 or above.
Your credit score indicates your creditworthiness and ability to repay debts based on your personal credit history. Card issuers will perform a hard inquiry on your personal credit reports during the application process. Approvals are more challenging with poor credit, though there are some secured card options for borrowers rebuilding credit.
Personal Information Requirements
In addition to your credit score, you’ll need to provide personal details to verify your identity, such as:
- Full legal name
- Date of birth
- Social Security number or Individual Taxpayer Identification Number
- Home address
- Personal annual income (from all sources, not just your business)
Most applications also require a personal guarantee. This legally binding contract states that if your business cannot pay its credit card bill, you’ll be personally responsible for the balance.
While not always required upfront, be prepared to share documentation like your driver’s license, Social Security card, utility bills, etc. to confirm your identity.
READ ALSO: Can You Get a Business Credit Card Without a Business?
Business Information Requirements
You don’t necessarily need an official registered business, revenue, or employees to qualify for a business card. However, issuers want to verify you have a legitimate business purpose beyond just personal expenses.
Typical business details requested include:
- Legal business name and contact information (sole proprietors can use their name/home address)
- Number of years in operation
- Number of employees (not including yourself)
- Business type or industry
- Business structure (sole proprietorship, LLC, corporation, etc.)
- Federal tax ID number (Employer ID Number or just your SSN for sole props)
- Annual business revenue and estimated monthly expenses on the card
Having an Employer Identification Number (EIN) from the IRS can help establish your business creditworthiness over time. However, many sole proprietors successfully get business cards just using their SSN.
Benefits of Using a Business Credit Card
While the application process is similar to personal cards, using a dedicated business credit card offers key advantages, including:
Higher Credit Limits: Credit limits for business cards are often higher than personal cards since issuers can factor your business income and revenue. Higher limits are especially beneficial for companies with large periodic expenses.
Separating Personal & Business Expenses: Using a business card exclusively for business purchases maintains a clear division between personal and professional finances for simplified accounting and tax prep.
Building Business Credit: Making on-time payments on a business credit card helps build your company’s credit profile, which can improve access to loans, vendor credit, and other financing as you grow.
Employee Cards: Many business card accounts allow you to get supplemental cards for employees, with the ability to set individual spending limits and receive consolidated statements.
Business-Friendly Rewards & Perks: Cards like the Chase Ink Business Cash earn bonus cash back on common business categories like office supplies, internet/cable services, shipping costs, and advertising on select media. Other cards offer travel rewards more suited for businesses.
Expense Management Tools: Popular business credit cards provide account tools to categorize and download transactions, create expense reports, and integrate with accounting software to streamline recordkeeping and reimbursements.
Establishing Business Credit History: While you leverage your personal credit for initial approval, using a business credit card is essential for building your company’s business credit history. Over time, maintaining a positive payment history on your business card accounts creates a commercial credit profile.
Having an established business credit record increases your company’s credibility and qualifies you for more business financing options. It also shows potential lenders, vendors, and investors that your business is financially responsible.
To begin building business credit, be sure to include your EIN (if you have one) on credit applications, as this identifier links the account to your company. Issuers typically report business credit activity to commercial bureaus like Dun & Bradstreet, Experian, and Equifax.
READ ALSO: Ink Business Unlimited vs Chase Freedom Unlimited – Which Cash Back Card Reigns Supreme?
Common Business Credit Card Application Requirements
Let’s take a closer look at typical requirements across personal and business details when applying for a business credit card:
Personal Requirements
- Good to excellent personal credit scores (FICO 690+)
- Full legal name as it appears on your credit reports
- Social Security number or Individual Taxpayer ID Number
- Date of birth
- Home address
- Annual personal income (from all sources)
- Personal guarantee holding you liable for the debt if the business cannot pay
Business Requirements
- Legal business name, address, and contact information
- Number of years in business (even brand new businesses qualify)
- Number of current employees (not counting yourself)
- Business type (retail, service, manufacturing, etc.)
- Business structure (sole prop, LLC, partnership, corporation, etc.)
- Federal tax ID number (EIN or your SSN if a sole proprietor)
- Annual business revenue
- Estimated monthly expenses to be charged to the card
Best Business Credit Cards for Startups and Side Gigs
Newer businesses often face a “chicken and egg” scenario—it’s hard to get approved for financing with little to no business credit history or revenue. Thankfully, leading issuers offer several excellent business credit card options suitable for startups and side hustles:
Capital One Spark Cash Plus: This card is geared towards bigger businesses with good credit, but Capital One frequently approves business owners with just a sole proprietorship and no EIN. With the Spark Cash Plus, earn unlimited 2% cash back on all purchases with no minimum to redeem.
American Express Blue Business Cash™ Card: Though an EIN isn’t required, Amex does typically want to see $3,000+ in annual business revenue for new customers. But the Blue Business Cash is a great no-annual-fee card earning 2% back on the first $50,000 in eligible purchases each year (1% thereafter).
Chase Ink Business Cash® Credit Card: For those with good credit, Chase’s Ink Business Cash card earns 5% back at office supply stores and on internet/cable/phone services. Plus, it has a 0% intro APR offer for over a year.
Conclusion
Getting approved for a business credit card requires meeting certain criteria around your personal creditworthiness and having a legitimate business purpose. While major revenue or an official business entity aren’t always mandatory, you’ll need to provide details like:
- Your Social Security number for a personal credit check
- Basic information about your business structure, type, and expenses
- Personal guarantee of responsibility for the debt
With a good personal credit score and showing you’re truly operating a for-profit enterprise, even small side gigs and newly launched startups can get approved for great business credit cards.
Taking the time to apply for a business card allows you to leverage higher credit limits, build business credit history, and access beneficial tools and bonus categories tailored for entrepreneurial spending. Whether you’re just starting your first hustle or operating an established company, a business credit card is well worth pursuing.
Frequently Asked Questions About Applying for Business Credit Cards
What Credit Score Do I Need for a Business Credit Card?
Most business card issuers look for good to excellent personal credit scores in the 690 to 850 FICO range. While business revenue factors in too, your personal credit is prioritized for approval odds if your business is new.
Can I Get a Business Credit Card With No Business?
You don’t necessarily need an official registered business, business license, or any revenue to get approved for a business credit card. However, you must have a for-profit business purpose of selling goods/services (even if it’s just a small side-gig).
What Documents Do I Need to Apply for a Business Credit Card?
Required documents often include your driver’s license and Social Security card/documentation. But beyond that, most details for your business credit card application can be provided online.
Do I Need an EIN to Get a Business Credit Card?
An Employer Identification Number (EIN) isn’t strictly required for many business card applications from major issuers. As a sole proprietor, you can simply use your Social Security number instead.
However, having an EIN allows issuers to track your business credit history more easily and helps build your company’s commercial credit profile.
Is It Hard to Get a Business Credit Card?
Getting approved for a business credit card can be easier for established businesses due to revenue history. But it’s also possible for new businesses and side gigs.
In another related article, Is it Illegal to Use a Business Credit Card for Personal Expenses?
