How To Apply For Business Credit Card – Getting a small business credit card approval is not as difficult as many people think. As long as you have a decent credit score and some form of business, you can apply for the best business credit card. In this article, we discuss some tips and tricks on how to get a business credit card and give you some of the best recommendations.
One of the biggest reasons people look for business credit cards is to separate business and personal expenses. This is often needed for accounting and tax purposes and is also good for general record keeping.
How To Apply For Business Credit Card
However, business credit cards often have special bonus categories that are ideal for small businesses and startups. Bonus categories such as advertising, travel, shipping, gas and telecom. Choosing the perfect business credit card can give you cash back or valuable rewards that you can use to travel more often (or more comfortably like Qatar First Class).
Double Hyatt Elite Nights With New Woh Business Credit Card
Getting a business credit card is much easier than you think. The application process generally works in much the same way as applying for a personal credit card. The only difference is that you need to provide additional details about your business.
What additional details are required depends on the bank you are applying for. Some banks only ask for a few additional details, while others ask for much more in-depth information about the nature of your business.
Again, different banks ask different questions, so it’s a good idea to organize all the details related to your business before you apply. Alternatively, you can find the application online and see what fields you need to fill out.
Different banks have different methods of approving business credit card applicants, but there are a few things you can do to increase your chances of approval.
How To Qualify And Get Your First Business Credit Card
Many people don’t know this, but there are separate credit scores for your business and personal profile. However, it is usually your personal credit score that determines whether or not a business card is accepted (especially for the first business card). Please remember that you are personally liable for any debt you accrue from these business credit cards. Therefore, banks want to make sure you are financially responsible.
A good credit score for a business credit card is usually around 720+, but a business card with a low score (even 600) may be accepted. In my personal experience, an Amex business credit card can be any of the following: Getting approval is easiest, but things can be different.
If you are unsure about your credit score, there are a few things you can do to increase your chances of getting approved.
You can open a business bank account with a prospective credit card issuer. This shows that you are serious about your business and can give you confidence in your revenue figures.
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You may need documentation for your LLC, d/b/a, etc. to open a business bank account. D/b/a documents are usually easy and inexpensive, and you can check your requirements with your local state or county courthouse. .
You can also establish a relationship with them by opening a personal credit card with that bank. For example, if you want the Chase Ink Business Preferred, you can apply for the Chase Sapphire Preferred or Chase Freedom and then wait a few months to receive your ink.
This is especially important if you plan to apply for an ink-like chase business card. If your business credit card isn’t approved immediately, you’ll most likely need to request a “review”.
This is a call that gets a lot of very specific questions about your business, such as your revenue, size, profit, etc. That’s why it’s good to have a cheat sheet with all the important details. The information on your application will be correct.
How To Get A Business Credit Card: Tips And Tricks
This should be obvious, but you need a business to apply for a business credit card. Traditional LLCs, corporations, partnerships, etc. are not always required. Even if you don’t currently have a business (or no business at all) making money, there is still hope.
If you are just starting a new business or have a non-profit business, you may still be eligible for a business credit card authorization. Some people have been approved for non-profit business credit cards, but sometimes they can be rejected for lack of revenue.
If you have an accurate way to forecast your revenue for the next year, you can always provide a good estimate of your revenue. Occasionally, these applications may end up with a financial review, so always have a reasonable basis for your expected returns.
And if that’s your first business card, it’s a good idea to combine personal income and business earnings, as personal credit reports are purely the basis for approval.
How To Get A Business Credit Card
If you don’t have a business at all, you need to start a business. The good news is that starting a business is incredibly easy. If you sell or resell on eBay, Amazon, Craig’s List, etc., you can definitely qualify for a business.
Or are you doing some kind of consulting or tutoring next door? It can also serve a business role. Again, I don’t want to be the untruthful person about applying for a credit card. Especially when you need a little initiative to start a side job.
When starting something like your own resale business, the business name is usually something like “First Name Last Name, Consulting” or “First Last Name, Contract”.
If you are creating your own small business through item resale or consulting, you can do so without creating an Employer Identification Number (“EIN”).
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In this case, select “Sole Proprietorship” as the company structure in the credit card application. If only fields appear on your EIN or tax ID number application, you can enter your social security number in that field.
If you don’t want to use your social security number, you can easily create an EIN in minutes. You can generate an EIN very quickly by simply navigating to the official IRS website.
Many business credit cards, such as Chase, Amex, and Citi, do not report on personal credit reports. This means you won’t see any new accounts that help mitigate the damage to your credit report.
Additionally, unreported credit card balances will not appear on your personal credit report. This is why some business credit cards, such as American Express Blue Business Plus, are ideal for balance transfers. Basically, you can quickly lower your utilization and increase your credit score.
How Is A Visa Infinite Business Credit Card Different From Other Credit Cards?
There are tons of great business credit cards on offer today. But below are some of my favorites. I like this because of the great bonus category perfect for many small businesses, especially if they spend money on advertising and travel. They also get some solid rewards.
Ink Preferred comes with one of the best signup bonuses at 80,000 Ultimate Rewards after spending $5,000 in the first 3 months! At 2 cents per point, that’s $1,600 worth of rewards. Even if you only used this as a statement credit, it’s still a $800 rebate!
The American Express Blue Business Plus credit card is one of my best business credit cards because you earn a whopping 2x on all purchases up to $50,000 per year. I value membership rewards close to 2 cents per point, so I give you 3.5-4% back on all purchases (up to $50,000 per year) in the form of membership rewards!
And this card includes a 0% annual interest period. So, if you need to make a bulk purchase, you can buy and pay off over time without reporting it on your personal credit report. It’s a great way to process bulk purchases if you don’t want to affect your personal credit score.
Can You Get A Business Credit Card Without A Business?
American Express OPEN’s Business Gold Rewards card is great in that you can earn 3x points by selecting one category. You can earn 3x by choosing one of the following categories:
The card also comes with a high welcome offer of 50,000 Membership Rewards points after spending $5,000 in the first 3 months. This was my first business credit card and I remember getting a lot of membership rewards with this card over the course of a year with a great bonus spend category.
The Capital One Spark Cash Visa is a very simple cashback credit card with 2% back on all purchases. this little
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