What a business credit card requires and who can get one
A business credit card is issued in your business's name rather than your personal name, though most issuers still run a personal credit check on the owner or applicant. You will need to provide your business's legal structure (sole proprietorship, LLC, corporation, or partnership), your business tax ID or EIN, and proof that the business exists — usually a business license, articles of incorporation, or a recent business tax return.
Most card issuers require that you have been in business for at least six months to two years, though some will issue to newer businesses if you have strong personal credit or put down a cash deposit. Sole proprietors can apply using their Social Security number instead of an EIN, but you will still need to show that you operate a business — a business license, a DBA registration, or even a business bank account statement can serve as proof.
Your personal credit score matters more than your business credit score when you first apply, because most businesses do not yet have an established business credit history. If your personal credit is below 650, most mainstream issuers will decline you, though some business credit cards are designed for people rebuilding credit and may accept scores in the 550–650 range.
Key Takeaways
- You will need your business's tax ID or EIN, proof the business exists (license or tax return), and your personal credit information, because issuers check your personal credit even for a business card.
- Most issuers require six months to two years of business history, though newer businesses can sometimes get approved if they have strong personal credit or offer a cash deposit.
- The application process takes one to three business days for a decision, and the card usually arrives within five to ten business days if you are approved.
- Business credit cards report to business credit bureaus (Dun & Bradstreet, Equifax Business, Experian Business) separately from your personal credit report, so on-time payments build your business credit profile.
Documents you will need to have ready
Before you start an application, gather these items so you do not have to stop halfway through. Most online applications will ask for them in this order: your business's legal name and structure, your business tax ID or EIN, your personal Social Security number, and your personal date of birth.
You will also need to provide your business address and phone number, the date your business started, and your estimated monthly business revenue or spending. Some issuers ask for a recent business tax return (Schedule C if you are a sole proprietor, or a corporate return if you are incorporated) or a business bank statement as proof of income. If your business is very new or you do not have tax returns yet, a business license or DBA certificate can substitute, though the issuer may ask follow-up questions.
Have your personal identification ready as well — a driver's license or passport. If you are applying as a business owner but not the sole decision-maker, you may need to provide information about other owners or authorized users, depending on the card issuer's requirements.
How the application and approval process works
Most business credit card applications are submitted online and take five to fifteen minutes to complete. The issuer will pull your personal credit report immediately and may also check business credit bureaus if your business has an established history. You will usually get a decision within one to three business days — some issuers give you an answer on the same day.
If you are approved, the card issuer will send you a welcome packet with your card, a PIN, and information about your credit limit and terms. The physical card usually arrives within five to ten business days. If you are declined, the issuer will send you a notice explaining the reason — most commonly insufficient credit history, a low credit score, or a business that is too new. You can ask the issuer to reconsider if circumstances have changed, or you can apply with a co-applicant who has stronger credit.
Some issuers offer instant card numbers for online purchases while you wait for the physical card to arrive. Check your welcome email or log into your online account to see if this option is available to you.
Differences between business cards and personal credit cards
A business credit card builds your business credit profile separately from your personal credit, which means on-time payments and low balances help establish credit in your business's name. This matters if you later want to borrow money for the business, because lenders will look at your business credit history as well as your personal history.
Business cards often come with higher credit limits than personal cards — sometimes $10,000 to $50,000 or more — because they are meant for business spending. However, you are personally liable for the balance, meaning the issuer can pursue you personally if the business cannot pay. This is true even if the card is in the business's name.
Business cards typically do not offer the same consumer protections as personal credit cards. For example, the Fair Credit Billing Act, which gives you the right to dispute charges and limits your liability for unauthorized use, applies to personal cards but not to business cards in most cases. Read the terms carefully before you apply.
Building and maintaining business credit with your card
Once you have the card, use it for regular business expenses — supplies, software subscriptions, travel, or equipment — and pay the full balance or at least the minimum payment on time every month. Payment history is the most important factor in business credit scores, so consistent on-time payments will raise your business credit rating faster than anything else.
Keep your balance well below your credit limit, ideally below 30 percent of the limit. A high balance-to-limit ratio signals financial stress to lenders and credit bureaus, even if you pay on time. If your credit limit is $25,000, try to keep your balance under $7,500.
After six to twelve months of responsible use, your business credit profile will be established enough that you can apply for other business credit products — a business line of credit, a business loan, or additional cards. Some issuers will also increase your credit limit automatically if you maintain good payment history.
What to do if you are declined
If an issuer declines your application, ask them in writing for the specific reason. Common reasons include a credit score below their minimum threshold, insufficient business history, or a recent bankruptcy or collection account on your personal credit report. The issuer must provide this information if you request it within 60 days of the decline.
If your credit score is the issue, you can work on raising it before applying again — pay down existing balances, dispute any errors on your credit report, and make all payments on time for at least three to six months. If your business is too new, wait until you have been operating for the issuer's minimum time requirement, usually six months to two years.
Some issuers offer secured business credit cards, which require a cash deposit equal to your credit limit. If you have been declined by mainstream issuers, a secured card can help you build business credit while you work on improving your personal credit score. After twelve to eighteen months of on-time payments, you can often graduate to an unsecured card.
Frequently Asked Questions
Do I need an EIN to get a business credit card?
No. Sole proprietors can use their Social Security number instead of an EIN. However, you will still need to show that you operate a business — a business license, DBA registration, or business bank account statement will work. If you do have an EIN, most issuers prefer it because it separates your business finances from your personal finances.
Will getting a business credit card hurt my personal credit score?
The application will trigger a hard inquiry on your personal credit report, which may lower your score by a few points for a few months. However, once the card is open, it does not directly affect your personal credit score because business credit cards report to business credit bureaus, not personal ones. If you carry a balance and miss payments, that can hurt your personal credit only if the issuer pursues you personally for the debt.
Can I use a business credit card for personal expenses?
Legally, yes — the card is yours to use. However, mixing personal and business expenses makes accounting and tax filing harder, and it can create problems if you are audited. Most accountants recommend keeping business and personal spending separate. If you need a personal card, open a personal credit card instead.
How long does it take to build business credit with a business card?
Most business credit bureaus will have enough information to generate a business credit score after six to twelve months of activity. However, the score will be stronger after two to three years of consistent on-time payments and low balances. Lenders typically want to see at least one to two years of business credit history before they will approve you for a business loan.
What happens if my business closes but I still have a balance?
You remain personally liable for the balance, even if the business is closed. The issuer can pursue you for payment and report the debt to personal credit bureaus if you do not pay. Contact the issuer and explain your situation — some will work out a payment plan or settlement, especially if you have a history of on-time payments.