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How to Apply for a Business Credit Card

Dec. 22, 2014
Business Credit Cards, Credit Cards
How to Apply for a Business Credit Card
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Individuals aren’t the only ones who need credit cards. Oftentimes, businesses do, too. If you’re a small business owner in need of credit, but not sure how to get it, here’s everything you need to know about applying for a small business credit card.

What is a business credit card?

A small business credit card is designed specifically for use by a business. As with any other type of credit card, potential cardholders must apply for and be approved for these cards. Once an account is opened, the cards can be used to build the business’s credit, in much the same way that an individual builds her own personal credit history.

If you’re a business owner, opening a small business credit card can be a smart move. Business credit cards can offer a wide variety of business-related perks, including a break on interest rates, rewards on office purchases, travel rewards and bonus points. Furthermore, business cards often have higher credit limits than do traditional credit cards.

How can you apply?

If you’re considering acquiring a business credit card, here’s what you need to know:

  • Before applying for a small business credit card, research to determine which card is the right fit for your specific needs.
  • When you find the ideal card and are ready to apply, fill out an online application form or visit your local bank.
  • You’ll need to input a variety of information on your business credit card application. This may include your business name, contact information, industry type, number of years in business, annual revenue, number of employees and federal tax identification number.
  • Even if you don’t have an established business, you may still be able to apply for a business credit card. Sole proprietorship applicants can simply use their Social Security numbers, rather than a federal tax ID.

It’s important to remember that having a business credit card doesn’t necessarily keep your business and personal finances separate. Some business credit cards will hold you (and your credit score) responsible for debts. Applying as a sole proprietor of the business, for example, will involve your own personal credit with your business. In general, if the card is in your name, you can expect to be held personally liable for the debts. However, your credit score may not always be impacted as much as it would with a personal credit card. Specific card issuers may report business cards differently, so you’ll want to research this aspect before applying.

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