Chip Lupo, Credit Card Writer
Yes, you can get a business credit card if you are self-employed. Your personal credit history, income and debt are the most important factors a credit card issuer will consider when deciding whether someone who’s self-employed will be approved for a business credit card.
Business credit cards are available to self-employed individuals of all credit levels, so make sure you check your credit score before you apply to see which business credit cards give you the highest odds of approval. If you are approved for a business credit card, your personal credit profile will also determine your initial credit limit and the interest rate.
Key Things to Know About Getting a Business Credit Card When Self-Employed
The application has business-specific requirements.
Self-employed applicants must provide their name, Social Security number or Tax ID number, and other personal info, just like with a personal credit card application.
You’ll also need to state your role in the business, along with the business name and type and annual business-related revenue. Enter $0 in revenue on the application if you’re newly self-employed and don’t have any annual revenue to report.
The number of years you’ve been in business matters.
Business credit card issuers will want to know how long you’ve been self-employed. Some issuers may be less likely to extend credit to self-employed applicants than to the owner of an established business, particularly if you’ve been self-employed for a short period of time.
Business credit cards require a personal guarantee.
It’s important to note that before you can get a business credit card, an issuer will require a personal guarantee. This means you personally agree to pay back any credit card debt your business is unable to pay back.
How Business Credit Cards Can Help Sole Proprietors
A business credit card isn’t required if you’re in business for yourself, although having one can be helpful in managing your business expenses by keeping them separate from your personal spending. Business credit cards also offer more business-specific rewards and perks. And if you use your business credit card responsibly, it may also increase your chances of getting approved for favorable interest rates on business loans that could help your business expand.
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