How to Get Business Credit Cards and Build Business Credit

Getting a business credit card can be a game-changer for entrepreneurs and small business owners, providing a way to separate personal and business expenses, earn rewards, and build business credit.

You'll need a business entity, such as a sole proprietorship, partnership, or corporation, to apply for a business credit card.

To qualify for a business credit card, you'll typically need a personal credit score of 650 or higher, and your business must have a minimum annual revenue of $5,000.

Applying for a business credit card is similar to applying for a personal credit card, and you'll need to provide personal and business financial information.

A business credit card is a relatively convenient way to cover your business expenses without finding an investor or shopping for a business loan.

Some business credit cards can even build up rewards and bonuses like a personal credit card.

You may qualify for a business credit card even if you don't run a thriving enterprise.

You may even be operating a small business in your life without ever having considered it as such.

Any sort of for-profit business activities count as a business — even on a very small scale — and can likely qualify you for a business credit card.

To get a business credit card, you'll need to meet certain eligibility requirements. You can qualify for a business credit card if you have a 1099 form for work like driving for Uber and Lyft or freelancing part-time, or if you own a rental property or sell stuff on eBay or Etsy.

You'll need a strong personal credit score, typically a FICO score of at least 690. This is because lenders will look at your personal credit report and credit score when you apply for a business credit card.

You can check your eligibility on the issuer's website before applying. You'll need to provide both personal and business information, including your name, date of birth, social security number, home address, phone number, annual income, and monthly housing payments.

Business credit cards are available to various business structures, including sole proprietorships, limited liability companies (LLCs), partnerships, corporations, and nonprofits. You'll also need to provide information about your business, such as your business name, business address, business type, monthly spending and annual income, number of employees, and tax identification number (EIN or SSN).

Here are the types of business structures eligible for business credit cards:

You can also use an EIN to apply for a small business credit card, but you'll likely need to provide your Social Security number as well.

To apply for a business credit card, you'll need to provide both personal and business information. You should be prepared to share your name, date of birth, Social Security number, home address, phone number, annual income, and monthly housing payments (mortgage or rent).

You'll also need to provide information about your business, such as the business name, business address, business type, monthly spending and annual income, number of employees, and tax identification number (EIN or SSN).

Applying for a business credit card will result in a hard inquiry on your personal credit report, which can temporarily affect your credit score.

Here's a list of the personal information you'll typically need to provide:

And here's a list of the business information you'll need to provide:

You can apply for most business credit cards through the credit card issuer's or bank's website, and the application process typically takes just a few hours to complete.

Business credit cards often come with rewards that can help you earn cash back or rewards points on your business expenses. You can earn rewards points that can be redeemed for free flights and hotel stays.

Rewards points can also be used to offset some of your spending, making them a great way to save money on your business expenses.

Rewards programs can be a great way to save money and get more value out of your business credit card. Many cards offer cash back or rewards points on eligible net purchases.

Some rewards programs include bonus points on an eligible purchase, cash rewards, and extended warranties. You might also get free or discounted car rentals, cell phone replacement, or replacement of lost luggage.

A rewards program might also include airport premium lounge access, concierge services, credit score monitoring, or access to VIP areas at events or museums. Some cards even offer membership rewards such as streaming services or premium-level accounts.

Here are some specific rewards you might find:

Some issuing institutions might offer their own branded reward points and benefits, or sometimes a gift card. Be sure to check if the banks, credit unions, or other institutions you patronize offer specific benefits for adding a business credit card to your existing account.

Low introductory APR can be a game-changer for businesses that need to make a large purchase, such as new equipment or merchandise. With a low APR, you'll pay no interest or low interest on new purchases for a limited time.

This can be especially helpful for businesses that don't have the cash on hand to make a big purchase upfront. Business credit cards sometimes provide a low introductory APR offer to help businesses make these types of purchases without breaking the bank.

Using a business credit card wisely is crucial to get the most out of it. You should only use it for large purchases that can be paid off in full before interest kicks in, as the interest rate on credit cards is typically much higher than for secured debt instruments.

It's also essential to consider the potential risks, such as maxing out your credit card and leaving you without a source of funds. This can happen if you're not careful with your expenses.

To avoid these pitfalls, you should plan your usage carefully and consider how many cards you'll need. This will help you choose the right card with the right features and limits for your business.

Here are some key benefits and drawbacks to consider:

By understanding these benefits and drawbacks, you can make informed decisions about how to use your business credit card effectively.

Business credit cards can offer numerous advantages, making them a valuable tool for business owners. Easier access to credit is one of the main benefits, especially for those with limited credit history.

Using a credit card can provide a financial cushion when accounts receivable are behind or sales are slow. This can be a lifesaver for businesses short on cash.

Rewards programs, such as airline miles and shopping discounts, are also a perk of many business credit cards. Some cards even offer cash-back incentives, repaying cardholders a percentage of their purchases.

A business credit card can also be a tool to build credit, as long as it's used responsibly. This can boost your chances of qualifying for a loan or line of credit in the future.

Here are some key advantages of business credit cards:

Using a business credit card can be a game-changer for small business owners. It can be easier to access credit, even if you don't have a well-established credit history, by qualifying for a revolving line of credit with a credit card.

A credit card provides a convenient way to access funds for purchases or cash withdrawal, making it easier to manage your business finances. This can be especially helpful when accounts receivable are behind or sales are slow and the business is short on cash.

A credit card can provide a much-needed financial cushion, giving you peace of mind and helping you stay afloat during tough times. This can be especially useful when you're waiting for accounts receivable to be paid or when sales are slow.

Online transactions are becoming increasingly common, and using a credit card makes them easier to manage. You can make purchases and do business online with vendors, contractors, and suppliers without having to worry about cash or checks.

Most business credit cards come with online record-keeping tools to help you manage your accounts. This can simplify bookkeeping, making it easier to track, categorize, and manage expenses. You can also use these tools to monitor employee spending and stay on top of your finances.

Many business credit cards offer rewards programs, including airline miles and shopping discounts, for using the card. Some cards also provide cash-back incentives, repaying cardholders a percentage of their purchases.

Responsibly using a small business credit card can be an easy way to build up a positive credit report for your business. This can boost your chances of qualifying for a loan or line of credit in the future, and at a potentially lower interest rate.

Business credit cards can be a convenient way to manage expenses, but it's essential to consider the potential downsides.

More expensive than other borrowing options, business credit cards can lead to high interest rates if not paid in full each month. This can add up quickly, making it crucial to monitor card usage and avoid late fees.

Personal liability agreements can put your personal credit at risk, making it harder to borrow money in the future. This is a serious consideration, especially if you're not careful with your card usage.

Security issues are a significant concern, as business credit cards can be vulnerable to theft or hacking. Make sure to implement robust security measures, such as monitoring card activity and educating employees on safe online transactions.

Small business credit cards often lack the same level of protection as consumer credit cards. Be aware of the services and protection offered by your card issuer before applying.

Fluctuating interest rates can be unpredictable, and it's essential to stay on top of communications from your issuer to understand how rates work and can change.

First, take some time to understand what sets business credit cards apart from personal credit cards. 70% of Americans use at least one credit card, but many individuals don't understand the fundamental distinctions of a business credit card.

To begin, consider your business lifestyle and general needs to help you narrow the scope of your research. This will make it easier to find a card that meets your company's needs.

Business credit cards offer a range of benefits, including introductory 0% APR, which is great for making up-front purchases you won't be able to pay off right away.

Think about your business size and what features are most important to you. A small business with ten or fewer people might look for a card that cuts intro APR or provides useful tools like analytics.

Here are some key features to consider when searching for a business credit card:

By considering these features, you can begin your search by targeting business credit cards that offer those features.

To get a business credit card, you'll need to establish a legitimate business structure. Many limited liability companies (LLCs) have business credit cards.

As an LLC owner, officer, or authorized representative, you can apply for and get a credit card. This means you'll need to be a decision-maker within the company to get approved.

You can then get additional cards for employees, but only after you've been approved yourself.

As a business owner, you can form a limited liability company (LLC) to protect your personal assets.

To apply for a credit card with an LLC, you must be an owner, officer, or authorized representative of the LLC.

You can then, if you wish, get additional cards for employees.

A corporation is a type of business structure that issues corporate credit cards to employees for business-related expenses. This structure allows for expenses to be made without requiring employees to pay out-of-pocket and wait for reimbursement, as seen in corporate credit cards.

A corporation is a separate entity from its owners, known as shareholders, who are not personally responsible for the business's debts or liabilities. This separation is similar to how a corporate credit card is only meant to be used for business-related expenses.

Corporations can be owned by individuals, other businesses, or even the government, and are often used for large-scale businesses or those with multiple owners.

You'll need your business's legal name, address, and contact details to apply for a business credit card. You'll also need to provide details about your business type, structure, and federal tax ID number (EIN or SSN).

Business credit cards are accessible to individuals with independent income streams, including CEOs, rideshare drivers, and Facebook Marketplace resellers. You can qualify for a business credit card regardless of your business venture, as long as you meet the minimum credit score and other eligibility criteria.

Qualifying for a business credit card is relatively easy if you have good credit to excellent credit and aim to separate personal and business expenses. You don't need to own a physical storefront or have numerous employees to qualify.

Some business credit cards may require proof of income to access premium benefits. You'll need to be prepared to share your employee count, annual business revenue, estimated revenue, and expected monthly card expenses when applying for a business credit card.