Everything You Need to Know About Getting a Business Credit Card

Everything You Need to Know About Getting a Business Credit Card

There are many reasons why small business owners apply for a small business credit card. It allows them to keep their business and personal finances separate. It helps them to build their business credit. In some cases, it also provides fast and easy access to working capital (especially for new businesses that have trouble qualifying elsewhere) and access to cash flow management tools. In short, getting a small business credit card can be a great way to legitimize your business.

If you are planning on applying for a business credit card, the following steps will help you get started:

Business Credit Card Requirements

Keep in mind business credit card requirements will differ depending on the specific card and application process. The following list includes some of the most common you will likely encounter when completing an application:

  • Your business’ legal name. Some of the requirements will be as simple as providing your business’ legal name and how your business is set up (C-corp, S-corp, LLC or limited partnership).
  • Business contact information. You will be asked to provide your business’ mailing address and phone number. (If you work from home, list your home address).
  • Industry type. You will be asked to provide your industry type. If given a drop-down menu option, choose the industry that most closely applies to your business.
  • Federal tax ID. Also known as an EIN (employer identification number), this nine-digit number is assigned by the IRS to registered businesses. The card issuer you choose will use this number to verify your business.
  • Personal credit history. One of the most important business credit card requirements is your personal credit history. The card issuer will use your information – name and social security number (SSN) – to perform a credit check. This helps them determine your reliability as a borrower.
  • Annual business revenue (and estimated monthly spend). The credit card issuer will want to know that your revenue can handle monthly credit card payments. This, coupled with an estimated monthly spend, is how they determine the size of your credit line.

How to Get the Application Process Started

The biggest task is to make sure you have all of the information listed above, and then research which business credit card is right for you. There are a variety of options for business credit cards on the market. Ultimately, the right credit card is one that you can qualify for and offers the features and rewards you are looking for.

If you are still unsure if this option is right for you and your financial goals, take some time to explore other options. If you run into trouble being approved because of bad credit, make sure you consider alternative funding like a bad credit merchant account. You can quickly secure the funds you need (in as little as 24 hours) regardless of poor or no credit. In fact, this option can help you rebuild your credit score, while also supplying the quick working capital you need.

Author Bio:Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their bad credit merchant account solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.


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