How do I get a business credit card? Getting a good business credit card can be a valuable asset for any entrepreneur or small business owner. Not only does it allow you to separate business and personal expenses, but it can also help build your company's credit history and provide rewards and perks. However, getting approved for a business credit card is different from getting a personal card.
In this article, we'll explore how to get a business credit card and provide tips for choosing the right business credit card for your needs.
Establish Your Business's Credit History
Before applying for a
business credit card, it's essential to establish your business's credit
history. Lenders will review your company's credit report to assess the risk of
extending credit. If you're just starting, you may need to build your business credit
from scratch.
Determine Your Business's Eligibility
When you ask how to get a business credit card, it is important to note that most credit card issuers have specific requirements for business credit card applicants. Generally, you'll need:
●
An
established business entity (LLC, corporation, etc.)
● Employer Identification Number (EIN) or Tax ID
● Business name, address, and phone number
● Annual business revenue and expenses
● Personal information and credit history (for the business owner)
Compare Business Credit Card Options
Not all business credit cards are created equal. Take the time to compare various options based on factors like:
●
Annual
fees and interest rates
● Rewards programs (cash back, travel, etc.)
● Welcome bonuses or 0% introductory APR periods
● Credit limits and spending limits
● Additional employee cards
● Business-specific benefits (expense tracking, accounting integrations, etc.)
Look for a card that aligns with your business's spending patterns and provides valuable rewards or perks.
When comparing options, consider cards from issuers like Chase, American Express, Capital One, and Bank of America, as well as options like NinjaCard.com, which offers a full suite of online banking services tailored for small businesses and entrepreneurs.
Gather Required Documentation
Most credit card issuers will require documentation to verify your business's legitimacy and financial standing. Common documents needed include:
●
Business
license or registration
● Recent business tax returns
● Financial statements (profit and loss, balance sheet)
● Business bank account statements
● Articles of incorporation or partnership agreements
Submit Your Application
Once you've identified the right business credit card for your needs, it's time to apply. Most issuers allow you to apply online, but you may need to print and mail in supporting documentation.
Be prepared to provide
your credit score and details about any existing business debt or credit lines.
Conclusion
Securing a business credit card involves building your company's credit history, meeting issuer requirements, and selecting the right card for your business needs. With proper preparation and a strong application, you can take advantage of the benefits a business credit card provides.
