How do I get a business credit card?

The process of applying for a business credit card is similar to that of a personal credit card. Before applying, you’ll need to research and select the card offering benefits that most appeal to you, such as a competitive interest rate and a relevant rewards program. Then, you’ll need to gather the information that the lender requests about your business and complete an application online or in person. To qualify a business, many issuers consider factors such as the owner’s personal credit score, the amount of cash in the business’s bank account and the company’s profitability.

While the application and approval process is fairly simple, doing some prep work ahead of time can help speed up the process.

Who can qualify for a business credit card?

Many business owners are eligible for a business credit card. Those who may qualify include:

• Freelancers

• Sole proprietors

• Limited liability companies

• Corporations

How to find the right business credit card

If you’re shopping for a business credit card, look first at those offered by the institution where you have your business bank account. Fees may be lower if you keep credit cards and accounts at the same institution.

There are several types of business credit cards to choose from — for example, cards with cash-back rewards or cards with travel rewards — so make sure to consider a card’s rewards program when shopping. Critical additional features to look for include access to online banking and mobile banking, which include security, fraud and purchase protection, and easy access to customer service.

If you know you’ll carry balances on the card from month to month, consider the card’s interest rate, which may vary over time. Some cards offer a 0% APR for balance transfers or new purchases, which can make them attractive if you carry a balance on a higher-interest rate card or need to make a large purchase.

What information do I need to apply for a business credit card?

You’ll usually need this basic information when applying:

• Your legal business name

• The business name you’d like printed on the card

• The type of business you own 

• Your business address

• Your business’s federal tax ID number (or your Social Security number if you have a sole proprietorship)

• Documents showing the structure of your business, whether a sole proprietorship, LLC or corporation

• Your business email address and phone number 

• Your number of years in business

• Your number of employees

• Your monthly expenses

• Your annual revenue 

How important is my personal credit in applying for a business credit card?

Newer small business owners are in the early stages of building a business credit profile. If you are one of them, lenders may look at your personal credit score as an indicator of how you’ll handle a business credit card. A secured credit card may be a good option if you’re looking to establish your credit. Secured credit cards require a deposit that serves as collateral against purchases made on the card.

Most lenders require that the person opening the business credit card — usually the small business owner — pay back any balance if the business is unable to pay it. This is true even if the business closes so your business credit may affect your personal credit score.

Bottom line

A business credit card can be a powerful financial tool for your business. By using it wisely, you can keep personal and business transactions separate for accounting and tax purposes, stretch your cash flow and build your business credit.