How to Get a Business Credit Card

Check your credit score

You will, in all likelihood, need to provide your Social Security number when you apply for a business card. In this case, you can expect the credit card provider to check your personal credit score. Going through your credit reports before applying for a business credit card gives you the means to spot possible errors that you can then get fixed. You need to do this because you want the best possible credit score when you apply for any new form of credit.

Your creditworthiness has an effect on the business credit cards for which you may qualify, as many are made available only for people with good to excellent credit scores. In addition, the better your credit score, the lower the interest you may expect on your new card.

If your business has been operational for two to three years, you might be able to get a business credit card by using your business credit score. In this case, you should go through your business credit reports before applying.

Explore different alternatives

You can look for and compare business credit cards based on different factors.

• Your credit score. Your credit score should give you an indication of the cards for which you might qualify. For instance, if you have an excellent credit score, you might get a business credit card with no annual fees and rewards. On the other hand, if you have poor or average creditworthiness, your options might be limited to secured credit cards.
• Rewards and perks. If you wish to capitalize on your business spending by earning rewards or cash back, look for options that offer higher reward rates across categories in which your business spends the most. These could be office supplies, gas or travel. If you and/or your employees travel frequently, you might benefit by getting a card that offers travel benefits such as priority boarding, credits toward TSA PreCheck and airport lounge access.
• Building credit. If you wish to get a business credit card with the aim of building business credit, make sure the option you’re considering reports payments to business credit bureaus such as Experian, Equifax and Dun & Bradstreet. If you cannot find this information easily, contact the credit card provider in question.
• Fees. Finding business credit cards with no annual fees is fairly easy, although ones that provide extensive perks tend to charge annual fees. If your business takes you overseas, you might benefit from getting a card with no foreign transaction fees.
• APR. You’ll want to pay attention to the annual percentage rate (APR) that applies to your card, especially if you plan to maintain revolving balances from one month to the next. If you plan to make an expensive purchase that you wish to repay over time, you may want to consider getting a business credit card with an introductory 0% APR offer.

MoneyGeek Expert Tip

Understand the personal guarantee

Just about every business credit card in the U.S. comes with the requirement of a personal guarantee. This means that you are liable to repay the debt incurred on the card if your business is unable to keep up with its obligation. Credit card providers require this guarantee to safeguard their interests.

Complete and submit your application

After determining which business card you would like to get, start the application process. Depending on the card and its issuer, you might be able to apply online, in person or over the phone. The application process requires that you provide different types of personal and business-related information.

Personal information

• Your complete name, date of birth and Social Security number
• Your phone number, mailing address and email address
• Your annual income and monthly expenses

Business information

• Name of the business and the industry to which it belongs
• Type of business (corporation, limited liability company (LLC), partnership, sole proprietorship, contractor or freelancer)
• Physical and mailing address
• Phone number
• Employer identification number (EIN), if available, or your tax identification number
• Age of the business
• Revenue and expenses (monthly or annual)

Based on the data you provide through the application, the card provider might request additional information. In such a scenario, you may be notified via mail, email or phone.

Wait for a reply

Depending on the credit card issuer's policies, you may expect a decision within minutes or in up to 10 business days. If the card provider requires additional information such as proof of revenue or estimated monthly spending, the process may stretch by a few more days.

Receive your card

Even if you receive instant online approval, it might take up to 14 business days for the card to actually get to you. Many credit card providers offer expedited delivery, and while some charge a fee for this service, others don’t. If you ask, many issuers will waive this delivery fee.

• Bank of America. Delivery within 72 hours at no extra cost.
• Chase Bank. Free expedited delivery in one to two business days upon request at no extra cost.
• Barclays. Delivery in one to two business days for a $15 fee.
• Capital One. Delivery in two to three business days for a $16 fee.