Not all businesses are cash positive, and getting a business loan isn’t always easy. Still, if you’re approved for a business credit card, it can provide a lifeline by allowing you to make purchases and pay for services. Whether you’re an established business or just starting out, knowing how to get a business credit card can help you prepare for the application process. Here are the steps to you should take to get a business credit card: When you apply for a business credit card, you will be asked to define your business type, so be prepared with the answer before filling out the application. If you want to incorporate or need to apply for an employee identification number (EIN) – your business’s social security number – you should complete these processes beforehand.
Business nameBusiness address and phone numberEINBusiness type (sole proprietorship, LLC, corporation, partnership, etc.)Age of the businessIndustryYour role in the businessNumber of employeesExpenses and annual revenueBank statementsPersonal credit information
Whether you plan to apply online or in person at the bank, having these documents and information available can make the application process quicker and easier. The better your credit score and the longer you have established an excellent credit history, the more likely you are to be approved with the best terms and benefits. You can get a free credit report with the three main credit bureaus – Equifax, Experian, and TransUnion – at annualcreditreport.com. If you frequently travel for business, you can get business credit cards that offer specific perks, like airline rewards. Other cards may offer a sign-up bonus, tiered cashback rewards for purchases , and more. Whatever your needs, weighing your options can help you find the best business credit card. Some creditors may ask for more information, which you should already have readily available to provide. You may be required to provide your personal information to guarantee repayment, even if the business fails. Once all relevant information is provided, the bank will make a final decision. If you’re approved, move on to the next step. If not, then you may need to work on your personal credit or establish business credit before trying again. Review the terms and conditions carefully, plus the rewards program details if you get a rewards business credit card. This way, you can use the card correctly and maximize your benefits. Now that you have a business credit card, only use it for business expenses and avoid mixing it with personal expenses. This will help you during tax time and keep your personal finances separate from the business. Having a business credit card allows you to separate your personal finances from your business finances, making record keeping easier and protecting your personal finances if you default or the business fails.
