How to apply for and get a business credit card in 3 easy steps

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How to apply for and get a business credit card in 3 easy steps

A closeup view of a pile of different types of sample business cards.

Getting a business credit card as a small business owner or emerging startup is easier than you might think. You can qualify for most cards as long as you have good personal credit (a score of 700 or higher), even if you don’t have a business plan or any business revenue.

There are plenty of benefits to opening a business credit card. You can access working capital, finance large purchases, and track business expenses more easily. Plus, you’ll build business credit, which will come in handy when applying for loans.

Applying for a business credit card is a simple process as long as you’re prepared. In this article, Ramp explains how to get a card in three easy steps.

How do business credit cards work?

Business credit cards work just like personal credit cards, except they’re designed for business expenses. They come with business-specific rewards programs and higher credit limits than personal cards to accommodate larger purchases. 

Some business credit cards also include features to help you manage your expenses, like downloadable expense information and integrations with accounting software.

How to get a business credit card

Opening a business credit card is a straightforward process, but it requires a little research and preparation. Here’s how to get a credit card for your business in three steps:

1. Check your eligibility

To get approved for a business credit card, you’ll usually need a strong personal credit score–generally, the credit score needed for a business credit card is at least 690. The exception to this rule is corporate cards, which approve based on business revenue.

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

• Sole proprietorships
• Limited liability companies (LLCs)
• Partnerships
• Corporations

‍You’ll be eligible for a business credit card no matter your business’s age, size, or nature. With that said, qualifying for business credit cards usually depends on your personal credit score, and many of the best cards require good to excellent credit.

It can be tough to open a business credit card with a poor or limited history, so you’ll need to determine which cards you have a realistic chance of qualifying for. You might consider building credit on a personal credit card or a secured business credit card before applying for the card you really want.

Tip: Can you use just an EIN to get a business credit card?

Technically, yes, you can get a business credit card with EIN only. However, the eligibility requirements for EIN-only cards tend to be much stricter. These cards are geared towards larger companies and often aren’t attainable for most small businesses.

2. Compare different business credit cards

‍There are plenty of different types of business credit cards on the market, so try to find the best card for your business. Here’s what you should pay attention to as you compare:‍

• Fees: Consider annual fees and interest rate (APR) fees. If business travel is the norm for you, look for a card that doesn’t charge foreign transaction fees.

• Rewards and perks:  Look for a credit card rewards programs that earns points or cashback on the types of purchases you make the most. Card offers like a statement credit or welcome bonus add even more value. 
• Balance transfers: Some cards come with a 0% intro APR period and allow balance transfers. This lets you move debt from another credit card and avoid paying interest during the intro period.

• Card features: Some business credit cards offer extra features like employee cards and expense management tools, such as automated expense reporting and accounting integrations.

If you have poor personal credit but substantial revenue or funding:

Consider a corporate card program. Your business’s finances and cash flow will be considered during the application process, rather than your credit score. Note that these cards are only available to registered businesses, not freelancers or sole proprietors.‍

If you need to pay off credit card debt or finance a large purchase:

A credit card with a 0% intro APR period that allows balance transfers is your best option. During the intro period, you can move over existing debt or pay down a large purchase over several months without interest.‍

If you want a cashback card with extra rewards in your top spending categories:

Find a small business credit card that lets you choose your bonus rewards category. That way, you can earn extra on the purchases you make most often.

If you want to maximize business travel rewards:

Look for a travel rewards credit card that earns bonus points on travel purchases. These cards come with other perks, too, like airport lounge access or annual free nightly hotel stays. You can find flat-rate or tiered membership rewards, depending on your preference.

If you want a versatile, straightforward card:

Cashback business cards are some of the most versatile because your rewards typically get redeemed as a statement credit. If you don’t feel like dealing with the hassle of selecting rewards categories or getting locked into rewards you can only use on a particular brand or chain, a cashback card is a great choice.

Tip: Can you open a credit card in your LLC’s name?

Yes, you can open a business credit card in your LLC’s name, using your LLC’s information and your own as the owner. For larger LLCs, corporate cards are available, which rely on the company’s financials rather than your personal credit history.

3. Apply for your business credit card

You can typically apply for a business credit card through the credit card issuer’s or bank’s website.

To complete your business credit card application, you’ll need several pieces of personal and business information:

• Legal business name
• Business address and phone number
• Type of business, industry, and legal structure
• Approximate annual revenue, years in business, and number of employees
• Estimated monthly spending
• Employer Identification Number (EIN)
• Social Security number (SSN)

It’s worth noting that applying for a business credit card may affect your personal credit score temporarily if the issuer performs a hard inquiry. While this effect on your credit won’t last, it’s best not to apply for many cards at once to avoid multiple credit inquiries affecting your score.

This story was produced by Ramp and reviewed and distributed by Stacker Media.

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