How To Get A Business Credit Card (2024)

Credit Cards Writer

Updated: Aug 17, 2023, 8:00am

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Up to 4X Reward Rate

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• Welcome Offer: Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
• Earn 4X Membership Rewards® points on the 2 categories where your business spends the most each billing cycle from 6 eligible categories. While your top 2 categories may change, you will earn 4X points on the first $150,000 in combined purchases from these categories each calendar year (then 1X thereafter). Only the top 2 categories each billing cycle will count towards the $150,000 cap.
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• Get $12.95 back in statement credits each month when you pay for a monthly Walmart+ membership (subject to auto-renewal) with your Business Gold Card. $12.95 plus applicable taxes.
• Your Card – Your Choice. Choose from Gold or Rose Gold.
• *Terms Apply

Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Credit cards for businesses can be similar to personal credit cards in terms of perks and reward structures, but many offer higher spending limits and improved reward earnings for business-specific categories such as office supplies, advertising and shipping expenses. Business credit cards also provide business-focused features such as tools to help track spending across various categories or by employee cardholder. With most business cards, expense information is available for download to your business accounting software which makes record-keeping easier.

Your business does not need an employer identification number (EIN) to apply for a business credit card as the owner’s SSN will usually be required in the application process. In most cases, the owner is expected to provide a personal guarantee for the business credit card so their personal credit history is used to determine the creditworthiness of the business.

However, if your business has an EIN, it’s beneficial to provide it in addition to the owner’s SSN when applying for a business card as the EIN identifies your business to commercial credit bureaus and helps to establish your business credit history.

Higher Credit Limits

Business credit cards often have a higher credit limit than personal cards since both business and personal revenue are taken into account. As the business starts to demonstrate sales growth and builds its own credit history, it becomes easier to increase credit card spending limits and successfully apply for loans or lines of credit.

A higher credit limit also allows you to make more purchases in a single statement period without maxing out the card. This avoids a large increase to your credit utilization—the ratio of your credit card’s balance to its assigned spending limit. Credit utilization is a significant factor in determining your credit score—a lower utilization ratio is desirable.

Access to more credit funding helps with cash management, providing funds when incoming cash doesn’t match the timing of cash outflows. This is especially useful for small businesses with financial constraints.

Building Business Credit

Getting a business credit card and using it responsibly can help your company build a credit history which is important for future funding. Like individual consumers, businesses have credit histories, which reflect spending, payment and revenue patterns.

A strong credit history increases your businesses’ credibility and reliability in the eyes of credit card companies, banks, vendors and investors. A business, like any individual, will also benefit from lower interest rates when a business credit bureau reports a clean record and a steady payment history.

In order to establish business credit, you’ll need to add your company’s EIN to the credit card application as the EIN is used to track your company’s credit performance.

Better Business Financial Records

A business credit card enables more accurate and organized financial reporting by separating personal expenditures from business expenses. Better financial data means improved record-keeping and less headaches at tax time.

The balance on the credit card is ultimately your responsibility—as a business owner, you’ll usually be required to provide a personal guarantee for your business card. If the business does not pay off the entire card balance when due, the owner becomes personally responsible for the debt.

Any delinquencies or derogatory items occurring on the business card account would likely be reported to consumer credit bureaus, which negatively affects the owner’s personal credit score.

Since most cards have a preset credit limit, it may be more difficult to manage if your business’s monthly spending varies drastically. There are also charge cards which have no preset spending limit and instead adapt based on factors such as your spending and payment history.

It’s important to be aware that business credit cards are not covered under the CARD Act of 2009, which protects consumer credit card customers. So, for example, the CARD Act requires issuers to provide consumers with advance notice before increasing an account’s APR—but notice is not required for business cards.

Applying for a business credit card is simple, but like any financial decision, requires diligent research and preparation. Before you apply, be sure to do the following:

1. Determine Your Eligibility

All types of business structures are eligible to apply for a business credit card. That includes:

• sole proprietorships or freelance work
• partnerships
• limited liability companies
• corporations

The size, age or nature of your company does not matter for business card eligibility. You can apply for a business credit card even if you founded your company last week. As long as you have the intention to make a profit from selling goods or services, you have a business. So don’t count yourself out if you’re a part-time freelancer or an eBay seller—these are legitimate businesses.

The first step in applying for a business credit card is determining which cards you have a realistic chance of qualifying for. Generally speaking, a credit card issuer will evaluate your personal credit history to determine whether your business qualifies for a credit card. That means it‘s important to maintain healthy spending habits and regular payments on your existing personal accounts to maintain a strong credit score and improve your chances of getting a business card.

Major business assets and revenue can also help your odds of approval as well as qualify your business for a higher credit limit. But if your business is newly created, the approval decision will depend almost entirely on your personal credit history.

2. Gather Required Information

A business credit card application will usually ask for information such as:

• Business name
• Business address
• Annual business revenue
• Number of employees
• Estimated monthly spending on the credit card
• Employer Identification Number (EIN) and/or owner’s SSN
• Business structure
• Business description

Note that if your business does not have an EIN, you can submit your SSN in its place.

Most business card applications will also require the personal information of the owner, since generally, the owner will be expected to give a personal guarantee. The credit card issuer may have follow-up questions about the business during the application process. Be honest and provide any documentation requested. Even if your new business’ current income is low or nonexistent, it is better to disclose this. Be ready to discuss your business and plans for its growth.

It may help to seek out business credit cards offered by banks you already have a relationship with—this can make the application process more comfortable, efficient and successful.

How To Get a Business Credit Card With Bad Personal Credit

Since business card approval usually hinges on your personal credit history, getting a business credit with a less-than-stellar personal credit report can be a challenge. It’s likely your options will be limited to secured business credit cards which require a security deposit.

If you’re launching a new business, getting a business credit card can help you manage startup costs and track expenses. Plus, earning a welcome bonus and rewards on your business spending can be a good way to offset some of your costs.

However, if your business isn’t established, you may be wondering how to best prepare so your application for a new card isn’t rejected. Here are three steps to set you up for success when getting a business credit card for your startup.

1. Research Your Options

Start with your current bank and see what options it offers. If you already have a business checking account, getting approval for a business credit card from the same institution may be more likely due to your pre-existing relationship.

However, if your bank does not offer what you need, shop around to find a more suitable credit card. When choosing a card, look into benefits such as welcome bonuses, rewards and credit limits. Consider annual fees, foreign transaction fees and interest rates. Understand fully how each card works and read through the terms and conditions carefully before submitting an application

2. Check Your Credit Before Applying

Credit card issuers will likely require your personal SSN in order to check your credit history. When you provide a personal guarantee, you become personally liable for your business credit card’s balances, including all employee transactions.

Credit card issuers naturally seek to reduce risk. They want to ensure you’ll pay your bills in a timely manner and won’t default on what you owe. The higher your credit score, the higher likelihood you’ll be eligible for better cards, higher credit limits and lower interest rates.

3. Apply for Your Business Credit Card

You will need to collect several pieces of personal and business information to complete your business credit card application:

• Legal business name, address and phone number
• Type of business and industry designations
• Legal business structure
• Federal tax identification number (business EIN and/or your SSN)
• Number of employees
• Approximate annual business revenue
• Estimated revenue
• Estimated monthly expenses on the credit card

We don’t advise that you apply for more than one credit card at a time. It is generally better to apply for the credit card that best fits your business’s needs and that you’ll be most likely to qualify for rather than trying to apply for multiple cards at one time. Applications generate hard inquiries on your personal credit reports, which temporarily lower your credit score—and multiple inquiries in a short span of time can make you seem desperate for credit, leading to rejections.

There’s no way to guarantee approval on any credit card application, but there are some things you can do prior to applying that should increase your chances of success:

• Avoid maxing out any personal or business cards you already have.
• Apply for new credit sparingly, to minimize hard inquiries on your reports.
• Identify the correct business structure to list—for example, if you’re selling handicrafts on Etsy or writing freelance articles online, you might be operating as a sole proprietor.

Responding to a credit card preapproval offer, if you have one, may also improve your odds.

Once you submit a business card application online or over the phone, the issuer will check your credit. After the credit check is complete, cardholders deemed creditworthy by the lender may see an approval.

The right card for your business will depend largely on how you operate your business, what types of purchases you make and what benefits you want to earn. Do you travel often for business? Do you take clients out for frequent meals? Does the business have significant expenses in specific categories, such as office supplies, gas or advertising? Do you need access to 0% APR funding?

The answers to these types of questions will help you identify the best business card for your needs.