Small Business Credit Cards

A business credit card is a credit card that only business owners or authorized representatives of businesses can apply for. Business credit cards are meant be used for business purposes, not personal expenses. And while it’s not illegal to put personal expenses on a business card, it does make bookkeeping and tax preparation much more complicated.

During the approval process for a business credit card, issuers will look at the credit history of the business and the money it makes. Business credit card issuers will also consider the personal credit and income of the person applying, because that person will almost always need to provide a personal guarantee. That means the applicant will need to personally commit to paying back the debt on the card if the business cannot.

There are a lot more features of business credit cards to know about before applying, too. They differ from personal cards in various ways, like lacking certain legal protections, being generally more expensive and offering higher credit limits.

What Defines a Business Credit Card:

• Only a business owner or representative of a business can apply for a business credit card.
• A business credit card should only be used for business. Putting personal expenses on the card isn’t illegal, but it is a bad idea.
• The CARD Act does not apply to business cards, so they have fewer protections than personal cards.
• People who apply for a business credit card must give a personal guarantee in most cases.
• Business credit cards offer “employee cards” to let employees share the account, often for free.
• Credit cards for business usually have higher credit limits than personal credit cards (since a business often has more money).
• Business credit cards are typically more expensive than personal credit cards.
• You may get rewards on purchases the business makes with a business credit card.
• Business cards may report to the big three consumer credit bureaus, but may also only report to business bureaus.
• It’s possible to build business credit by using a business credit card.

You can get a business credit card whether you have hundreds of employees or you’re a sole proprietor. There are tons of options, and you can see some of the best business credit card offers on WalletHub to start your search.

To get a business credit card, you must provide your Tax ID Number (TIN) or Employer ID Number (EIN) along with your Social Security number on the business credit card application. To qualify, a business credit card applicant must also be an owner, officer or partner of a business, which may include sole proprietorships, independent contractors and non-profits, in addition to corporations, partnerships and LLCs. Then, if you get approved for a business credit card, your card will list your company’s name in addition to your own.

Other than those things, the process of getting a business credit card is pretty much the same as applying and getting approved for a credit card for personal use. For instance, the issuer will still check your personal credit history when you apply for a business credit card, and you’ll be held personally liable for any unpaid balance. With that in mind, it’s also worth noting that there’s no rule against using a consumer credit card for business spending, so getting any credit card could count as getting a credit card for your business.

Below, we’ll you guide you through how to get a business credit card, step by step, then highlight the various requirements that small business owners typically have to meet in order to get a credit card in their business’s name.

How to Get a Business Credit Card

1. Own or operate a business. Most major credit card issuers have broad definitions of what constitutes a “business.” Owners of traditional businesses obviously count, like LLCs, non-profits, corporations, and so on. Independent contractors and freelancers can also qualify for business credit cards from some issuers. Even sellers on eBay, Airbnb hosts, etc., may be able to get one. Essentially, if you provide goods or services and make income from them, you could qualify for a business credit card. If you’re one of these non-traditional “business owners,” you’ll list “sole proprietorship” under business type on your application.
2. Check your personal credit score. Your personal credit standing is much more important to your business credit card approval odds than your business’s credit standing. Checking your credit score for free is an easy way to get a sense of what business credit cards you’re likely to qualify for, allowing you to focus on relevant offers.
3. Determine whether you need cards for employees. Business credit cards typically allow you to add more authorized users than consumer cards. You can also customize spending privileges for each employee.
4. Choose between rewards and 0% rates. Rewards are best when you always pay in full, and you can find great rewards deals from both business and consumer credit cards. But if you want a card for financing purposes, get a consumer card with a 0% rate, as consumer cards have more predictable regular APRs than business credit cards.
5. Compare cards based on your intended usage. Calculating how much each credit card offer will save or cost you in terms of your business’s spending and payment plans is the best way to find the right card.
6. Apply for the best credit card for your business. You can apply for a business credit card online and, in some cases, by phone, by mail or in person.

Those are the basic steps for finding and applying for the right business credit card. But it’s not always that easy to actually get approved. Below, we’ll cover the biggest requirements you’ll likely need to meet in order to get approved for whichever business credit card you decide to apply for.

Business Credit Card Requirements: What You Need to Qualify

The most important business credit card requirements are a good credit score and a low debt-to-income ratio. These are the requirements weighed most heavily by business credit card issuers. Your personal credit score lets them know how you’ve handled your finances in the past, and your personal debt-to-income ratio lets them know how able you’ll be to pay off what you borrow each month.

When it comes to determining whether or not to approve you for a business credit card, issuers want to feel confident that you’ll be able to pay your bill each month. Personal financial records are the best way to judge that because they usually go back much further than business records, and business credit card owners are personally liable for balances, anyway. That helps to explain some of the boxes you’ll need to check in order to qualify for business credit card approval.

Business Credit Card Requirements:

• Owner, officer or partner of a business, which may include sole proprietorships, independent contractors and non-profits, in addition to corporations, partnerships and LLCs.
• Employer Identification Number (EIN) - assigned by the IRS when you register your business. If you’re a sole proprietor who doesn’t have an EIN, you’ll just fill in your SSN.
• U.S. resident
• 18+ years old
• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Ability to make monthly bill payments

In addition to these requirements, there’ll be other information you should have on hand. You’ll need to provide your annual income, which will help the issuer determine your debt-to-income ratio. On top of that, you’ll need to list business information such as the number of employees you have, how long you’ve been in business, your annual business revenue, and your business contact information. Even if you’re a one-man startup operation that hasn’t opened yet, you’ll still need to provide all of that information.

If you haven’t made any business revenue, be honest about it. Trying to stretch the truth on any kind of credit card application is not a good idea. There are plenty of business credit card options out there for new businesses, so don’t worry.

Once you’ve covered the above requirements, you’re just about ready to apply for a business credit card. Just remember that each issuer has its own specific standards. So make sure to read your chosen card’s terms and conditions before submitting an application.

Yes, you can apply for a business credit card with an EIN only, but it’s rare. Most business credit cards require an Employer Identification Number (EIN), which the IRS assigns every U.S. company that applies for one, but most business cards also require a Social Security number or Individual Taxpayer Identification Number.

The EIN shows that you’re legitimately a business owner. The SSN, or ITIN, allows the credit card company to review your personal credit history when evaluating your application and hold you personally accountable for paying the bill if you’re approved. Almost all business credit cards require personal liability. But there are a few exceptions.

Business Credit Cards You Can Apply for With an EIN Only

• Office Depot Business Credit Card: You can apply with without an SSN if your company makes over $5 million per year and has been in business for at least three years. Or, if you are a government entity (including schools) or a nonprofit, you can apply without personal liability also. This card only works for OfficeMax and Office Depot purchases. This card requires fair business or personal credit.
• Sam's Club® Business Credit Card: You can apply without an SSN if your company makes $5+ million per year, is more than 2 years old and has more than 10 employees. You can only get this card if you’re a Sam’s Club member, and you need good business or personal credit to be approved. You can use the card anywhere that accepts Mastercard.
• SuperAmerica Fleet Credit Cards: You can apply for these cards without an SSN if you’ve been in business for at least three years. You can use it at all SuperAmerica gas stations and 45,000 partner stations nationwide. Both cards require good business or personal credit.
• Shell Small Business Credit Card: You can get this card without any personal liability if you’re applying on behalf of a government entity or non-profit, or if your business has been open for at least three years and does $1+ million in yearly sales. This card requires fair business or personal credit, and you can use it at any of the 12,000 Shell gas stations nationwide.

If you want to apply for a business card with only an EIN, the choices are slim. But your options become far greater when you consider the full range of cards that require personal liability.

If you’re worried that your personal credit isn’t good enough to qualify for a business credit card, remember that you can apply for a secured business card, or even consider applying for a secured personal card and use it for business expenses. So, consider personal options such as the Discover it® Secured Credit Card as well as the likes of the Wells Fargo Business Secured Credit Card. Both are available to people with bad credit.

To get a business credit card with bad personal credit, shop around for either secured business credit cards or unsecured personal cards for people with bad credit, and apply for the offer with the lowest fees. Lenders hold business cardholders personally liable for any unpaid business debt, so when you apply, the lender will review your personal credit history. This is done to project your ability to pay back any business debt. If you are approved, the lender will also require a signed personal guarantee. This assures the lender that the business owner will personally repay any business credit card debt when the business is unable to do so.

Unfortunately, there aren’t really any unsecured cards marketed to small business owners with bad credit. You could get a personal credit card for poor credit and put business purchases on it, but unsecured cards for bad credit have expensive annual, monthly and one-time fees. This leaves secured credit cards as the better option.

Secured credit cards and unsecured personal cards for bad credit both allow you to establish or rebuild credit as you make business purchases. But with a secured card, there is a required security deposit. It serves as collateral and increases your approval odds since the lender takes on less risk. The card’s credit limit will be equal to the amount of the deposit. Deposits typically start at $200 and are fully refundable when you close your account in good standing.

Once you’ve found your desired credit card for business with bad personal credit, the steps to getting one are fairly straightforward.

How to get a business credit card with bad personal credit:

1. Submit an application. Depending on the card, you can apply online, by phone or in response to a targeted mail offer. If your bank or credit union offers a business credit card for bad credit, you may be able to apply in-person. Applying online will usually get you the quickest decision.
2. Put up the security deposit. This is required either when you apply or once you’re approved. You can write a check or authorize a one-time electronic bank draft for the amount of your deposit. The security deposit will be returned if your application is denied.
3. Wait for approval. Unless you have an unresolved bankruptcy or charge offs on your credit report, you stand a very good chance of getting approved for a secured credit card. A decision on your application can take a few seconds or a few weeks.
4. Wait for your card to arrive. Once you’re approved, your card should arrive by mail within 7-10 business days. Some issuers may expedite shipping of your card upon request. Expedited shipping may cost a fee, but could speed the delivery up to as little as 1-2 business days.
5. Activate your card. Once you receive your card, call the number/visit the URL printed on the decal affixed to it. If you activate by phone, you may have to place the call from the number listed on your application for security purposes.

Some of the best secured business credit cards for bad personal credit include the Wells Fargo Business Secured Credit Card and the BBVA Compass Secured Visa® Business Credit Card. Or, you could go with a personal secured card such as Discover it® Secured Credit Card. Just stay away from putting business and personal purchases on the same card.

A business credit card with no personal credit check is hard to come by. Secured business credit cards are much easier to get than regular unsecured business credit cards, but there’s still a personal credit check involved, and you’ll have to pay a security deposit. A personal credit check allows lenders to measure a business owner’s ability to pay back any debts when there’s little or no business credit history to review.

In addition to the personal credit check, lenders require business owners to provide a personal guarantee. This states that the business owner is personally responsible for paying off any balance if the business is unable to do so. Very few business cards don’t require a personal guarantee.

If you don’t have good credit, there are personal credit cards that do not require a credit check at all. You can use them for business purposes, but they usually require a security deposit and don’t let you borrow money.

If you decide that you’re comfortable applying for a business credit card despite the personal credit check, check out our editors' top picks for the best business credit cards for each credit level. You might also be interested in WalletHub's credit building guide. This will help you on your road to excellent credit.

To get a business credit card for your LLC, first check your personal credit score to get a sense of which offers you may qualify for and then compare those offers to find the best deal. Most small business credit card issuers will judge your application based on your personal creditworthiness.

Keep in mind that if you aren’t the owner of the LLC, you must at least be an authorized officer of the LLC – in other words, legally able to sign for the company – in order to apply for a credit card in the LLC’s name. Authorized officers will be named on the LLC’s operating agreement, and can be the LLC’s owner, president, managing member, member, or treasurer, for instance.

How to Get a Business Credit Card for Your LLC in 4 Steps

1. Check your credit score. Your personal credit score plays a big role in which business credit card you can get, but you don’t need good credit to get a business credit card. You can check your latest credit score for free on WalletHub.
2. Determine which card would be best for you. The ideal business credit card will give you the best value in rewards and benefits, based on your business spending and your overall needs. Narrow down the choices based on rewards rates in your biggest spending categories and other card benefits, and then compare expected earnings after taking any fees into account.
3. Fill out the application. You’ll need to provide details about the LLC on the application, such as its name, address, phone number, annual income, number of employees, years in business, and Employer Identification Number (EIN). You’ll also need to provide some information about yourself, such as your Social Security number and personal income, among other things.
4. Wait for a response. You could get a decision instantly, or the card issuer may need a closer look at your application. Most credit card issuers make a decision on applications within 2 weeks, and if you’re approved, your new card should get to you in 7-10 business days after approval. If you get denied for the card, consider calling the card issuer’s reconsideration line or looking into other credit card options.

Business credit cards can be assets for LLC owners, as they tend to offer more business-focused benefits and rewards, with the potential for higher credit limits than personal cards. That said, many LLC owners use a personal credit card for business purposes – and that’s perfectly fine, if you aren’t interested in building business credit and you keep your business and personal expenses separate.

You can get business credit cards without a Social Security number, but it’s not easy and will limit your options. Approval for nearly all business credit cards is heavily reliant on the state of a small business owner’s personal finances, which is why your SSN is important for card approval. It’s also important because you are personally liable for all business card balances. If you don’t have a Social Security number and aren’t able to get one, you could apply for a business credit card with an Employer Identification Number (EIN) instead of an SSN. But there are some steps you must take first.

First, if you don’t already have an Individual Taxpayer Identification Number (ITIN), you must apply for one. You can then use your ITIN to apply for an EIN. Then, compare offers from credit card companies that will accept an EIN in place of a Social Security number. Some credit card issuers – like American Express, Bank of America, and Citibank – will accept ITINs, foreign passports, or other government-issued IDs in place of a Social Security number. Wells Fargo and U.S. Bank will allow you to apply with an ITIN in place of an SSN, but only for their secured cards.

Still, there are only certain cards you can apply for without an SSN, and issuers usually exclude business cards.

Easiest Business Credit Cards to Get Without a Social Security Number:

• Shell Small Business Credit Card: $0 annual fee. No rewards. Can apply with an EIN in place of an SSN.
• Office Depot Business Credit Card: $0 annual fee. $50 statement credit after making your first purchase of $150 within 60 days. 2% back in rewards on Office Depot purchases. Can apply with an EIN in place of an SSN.
• Sam's Club® Business Credit Card: $0 annual fee. 5% cash back on gas (up to $6,000 spent per year), 3% cash back on dining, and 1% cash back on all other purchases. Must be a Sam’s Club member to apply. Can apply with an EIN in place of an SSN.

Finding a suitable business credit card that will let you apply with an EIN and not an SSN is difficult. This is largely because applying with an EIN means the issuer isn’t able to run a personal credit check on you. For the best chances of approval without an SSN, you’ll want your business finances to be in excellent shape and very established.

Another business credit card option that doesn’t require an SSN is a corporate card. Corporate cards are business credit cards that are issued to a corporation as opposed to an individual. Corporations generally need at least $10 million in annual revenue to qualify for a corporate card, however. Issuers will review the company’s financial track record and use company assets like CDs and bank accounts as collateral.

You can check your business credit via three main business credit reporting agencies: Experian, Equifax and Dun & Bradstreet. They track essentially the same information which they get from banks, credit unions and other lenders (even retailers that offer financing), as well as public court documents and business registries.

Practically speaking, there are two different types of business credit scores: business-specific scores and personal credit scores that are used for business lending purposes. The two most popular business credit scores come from Experian and Dun & Bradstreet – Equifax offers business credit reports, but not scores. You can obtain your business credit report and score from these bureaus online, in exchange for payment.

On the other hand, personal credit scores can also be used for business lending purposes. WalletHub can be of help in this aspect, since you can check your personal credit score for free by signing up for an account.

You can also learn more about business credit reports and find some tips on how to build business credit right here on WalletHub. Hope this helps!

One way to check for business credit card pre-approval is to visit a local branch and ask a banker to help you with this matter. Just note that not all issuers provide this service, so best to call them before heading down to your local branch.

Aside from checking for pre-approval by visiting a local branch another option is to sit back and wait for a pre-approved business credit card offer in the mail. To respond to a mail offer after it arrives, visit the website or call the number listed in your pre-approval letter. You’ll have to provide details such as your name, address and possibly, your Social Security number (SSN). You will also need to enter the promo code included in the mailing.

None of the major credit card issuers currently provide any online tools for business credit card pre-approval, but you could always contact an issuer before applying directly or checking for in-branch pre-approval offers.

When possible, business credit card pre-approval has a lot of benefits. For example, pre-approvals typically use a soft inquiry that does not affect your credit score. When you submit a full application for a card, on the other hand, there’s a hard inquiry into your credit history that causes a temporary dip in your score.

But it’s important to note that pre-approval is never a guarantee of actual approval. It only means that your preliminary information indicates you’re a likely candidate for approval if you actually apply. In most cases, applications for pre-approved offers are ultimately approved.

Also, bear in mind that an issuer will review your personal credit history when you apply for a business card. That’s because, in almost all cases, you will be held personally responsible for repaying the balance if the business cannot.

There are currently no business credit cards that have 0% APR for 24 months.

One of the best offers is U.S. Bank Business Platinum that comes with an intro APR of 0% for 18 billing cycles on purchases and 0% for 18 billing cycles on balance transfers. This card has a 3% (min $5) balance transfer fee and its regular APR is 11.99% - 20.99% (V).

There are several good 0% APR business credit cards, though, so you might want to check out our editor’s latest picks for the best among them and see which one better suits your needs.