Getting a business credit card can be a smart move for your company.
These cards offer perks and rewards tailored to business needs.
To sign up for a business credit card, you’ll need to provide information about your company and personal finances.
Many cards don’t require you to have a registered business – even freelancers can apply.
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Before you start the application process, check your credit score.
A good score helps you qualify for better cards.
Think about what rewards would benefit your business most.
Some cards offer cash back on office supplies, while others give travel points.
Once you’ve picked a card, gather your business and personal details.
You’ll need things like your company’s name, tax ID, and annual revenue.
Be ready to share your personal income too.
Most issuers look at both business and personal finances when deciding to approve you.
Key Takeaways
- Business credit cards offer unique perks for companies of all sizes
- Good personal credit helps secure better card options
- Applicants need both business and personal financial information
Preparing to Apply
Getting ready to apply for a business credit card takes some planning.
You’ll need to check your credit, research card options, and pick the right card for your company’s needs.
Assessing Your Business & Personal Credit
Before applying, it’s smart to look at your credit reports.
Your personal credit score matters a lot for business cards.
Many card companies check it when you apply.
A good score is usually 690 or higher.
For new businesses, your personal credit is key.
Older companies might have a business credit history too.
Either way, it’s good to know where you stand.
You can get free credit reports from the big credit bureaus.
Check them for mistakes.
If you find any, fix them before you apply.
This can help your chances of approval.
Understanding Different Card Features
Business credit cards come with lots of perks.
Some offer cash back on purchases.
Others give travel rewards or points.
Many have sign-up bonuses too.
Annual fees can range from zero to hundreds of dollars.
Higher fee cards often have more perks.
Think about if the benefits are worth the cost for your business.
Look at interest rates too.
Some cards have a 0% intro APR.
This can help if you need to make big purchases.
But watch out for high rates after the intro period ends.
Other features to check:
- Foreign transaction fees
- Employee cards
- Spending reports
- Travel insurance
Choosing the Right Card for Your Business
Pick a card that fits your spending habits.
If you travel a lot, a card with airline miles might be best.
For everyday expenses, look at cash back cards.
Think about your business type too.
A sole proprietor might want a different card than a big company.
Some cards are made for startups, while others suit established firms better.
Compare several cards before you choose.
Look at the Chase Ink cards or American Express Business cards.
Capital One has good options too.
Don’t forget about smaller banks – they might have deals that fit you well.
Consider your credit limit needs.
Growing businesses might want higher limits.
But be careful not to overspend.
Pick a card that helps your business grow responsibly.
Maximizing Card Benefits
Business credit cards offer many perks.
Smart use of these cards can boost your bottom line and make travel easier.
Let’s look at how to get the most from your card.
Utilizing Rewards and Offers
Welcome bonuses can jumpstart your rewards.
Many cards offer big points or cash back when you spend a set amount in the first few months.
For example, some cards give 90,000 bonus points after spending $4,000.
Pick a card that matches your spending.
Travel cards are great for frequent flyers.
Cash back cards work well for everyday expenses.
Use your card for all business costs to rack up points fast.
But always pay the full balance to avoid interest charges.
Managing Business Expenses
Business credit cards help track spending.
Many offer detailed reports and can sync with accounting software.
This makes tax time much easier.
Give employees their own cards with spending limits.
It’s easier to manage than expense reports and reimbursements.
Some cards offer higher rewards on common business costs.
A card might give 3% back on office supplies or 4x points on advertising.
Use your card’s tools to set budgets and get alerts.
This helps control spending and spot unusual charges quickly.
Leveraging Additional Card Perks
Many business cards come with extra benefits beyond points.
Airport lounge access can make travel more comfortable.
Some cards offer free Clear or TSA PreCheck.
Look for cards with travel insurance.
It can cover trip delays, lost luggage, or rental car damage.
Purchase protection is another valuable perk.
It can replace items that are damaged or stolen soon after buying them.
Some cards offer statement credits for specific purchases.
A card might give $200 back on airline fees or $100 for Global Entry.
Frequently Asked Questions
Applying for a business credit card involves several key steps and considerations.
Here are some common questions about eligibility, application processes, and timelines for different business types.
What’s the process for applying for a business credit card online?
To apply for a business credit card online, start by comparing different cards.
Choose one that fits your needs.
Fill out the online application with your business and personal info.
Submit required documents like tax returns or business licenses.
Can I get a business credit card if I’ve got a sketchy personal credit history?
Getting a business credit card with bad personal credit is tough.
Many card issuers look at personal credit scores.
Some may approve you with a score as low as 600.
But your options will be limited.
Try secured business credit cards if your credit is poor.
These require a cash deposit as collateral.
Is it possible to snag a business credit card without actually having a business?
It’s not recommended to apply for a business credit card without a real business.
Card issuers usually require proof of business operations.
This could be a tax ID, business license, or financial statements.
Some people use business cards for side hustles or freelance work.
But you should have some kind of business activity to report.
How do I hook up my LLC with a business credit card?
To get a business credit card for your LLC, gather your company’s legal docs.
You’ll need your LLC’s EIN (Employer Identification Number) and formation documents.
Fill out the application with your LLC’s info.
You might need to provide personal details as a guarantor.
Some cards let you put the LLC name on the card.
What steps do I need to take to apply for a business credit card as a solo entrepreneur?
Solo entrepreneurs can apply for business credit cards too.
Use your Social Security number if you don’t have an EIN.
Provide details about your business income and expenses.
Be prepared to use your personal credit history.
Many card issuers will check it for sole proprietors.
How soon can I start swiping with my new business credit card after I apply?
After you apply, approval times vary.
Some cards offer instant approval.
Others might take a few days to review your application.
If they approve you, you’ll usually get your card in 7-10 business days.
Some issuers offer expedited shipping for a fee.
You can often start using your card for online purchases as soon as you activate it.