What a business credit card requires and where to get one
A business credit card is issued in your business's name rather than your personal name, though you will still need to provide personal financial information to the card issuer. Most business credit cards come from the same banks and credit card companies that issue personal cards — Chase, American Express, Capital One, Discover, and others — but some are offered only through business-focused lenders or online banks.
To open a business credit card, you will need to provide your business structure (sole proprietorship, LLC, S-corp, or C-corp), your business tax ID or EIN, and personal information including your Social Security number. The card issuer will check your personal credit report and often your business credit history if one exists. Some issuers also ask for business revenue, time in business, or a business plan, depending on the card and your business stage.
The process typically takes one to two weeks from application to approval, though some online issuers can approve within days. You will receive the card in the mail at your business address or a personal address you provide.
Key Takeaways
- Business credit cards require your business tax ID (EIN) or Social Security number if you are a sole proprietor, plus personal financial information.
- Card issuers will review your personal credit score and may check your business credit history, so your personal credit matters even for a business card.
- You can apply online, by phone, or in person at a bank branch, and approval usually takes one to two weeks.
- Business credit cards report to business credit bureaus (Dun & Bradstreet, Experian Business, Equifax Business), which can help build your business credit separate from your personal credit.
What documents and information you will need to provide
Before you start an application, gather your business tax ID (EIN) or your Social Security number if you operate as a sole proprietor. You will also need your business address, the date your business started, and an estimate of your annual business revenue. Have your personal Social Security number, date of birth, and current address ready.
Some card issuers ask for additional documents depending on your business structure. If you are an LLC or corporation, you may need to provide articles of incorporation, an operating agreement, or a business license. If your business is very new (less than six months old), some issuers ask for a business plan or proof of business activity such as a business bank account statement or invoices.
Keep your personal credit report handy if you want to know your starting point. You can check it free once per year at annualcreditreport.com. Knowing your credit score before you apply helps you understand which card issuers are likely to approve you, since different cards target different credit ranges.
How to choose between different business credit card options
Business credit cards vary in annual fees, rewards structures, and credit requirements. Some cards charge no annual fee and offer cash back on all purchases. Others charge $95 to $550 per year but offer higher rewards rates, travel benefits, or purchase protections. A few cards are designed for businesses with lower credit scores and may have higher interest rates but lower barriers to approval.
Compare cards based on how you spend money. If you buy office supplies and fuel regularly, look for a card that rewards those categories. If you travel for business, a card with travel points or airline miles may save you more than cash back. If you carry a balance month to month, focus on the interest rate (APR) rather than rewards, since interest charges will outweigh any rewards you earn.
Check whether the card reports to business credit bureaus. Cards that report to Dun & Bradstreet, Experian Business, or Equifax Business help you build business credit separate from your personal credit. This matters if you plan to borrow money for your business later, since lenders will look at your business credit history.
Steps to apply for a business credit card
Start by choosing a card that matches your business needs and credit profile. Visit the card issuer's website or call their business line to begin the application. Most issuers offer online applications that take 10 to 15 minutes to complete.
Fill in your business information: legal business name, business structure, EIN or Social Security number, business address, and the date you started. Then provide your personal information: name, Social Security number, date of birth, and personal address. You will also enter your estimated annual business revenue and describe your business in a few words.
Review the terms before you submit. Check the annual fee, APR (interest rate), rewards structure, and any introductory offers. Once you submit, the issuer will review your application, usually within one to two weeks. You will receive a decision by email or mail, and if approved, the card will arrive within 7 to 14 business days.
What happens if you are denied, and alternatives to consider
If you are denied, the card issuer must send you a written notice explaining the reason. Common reasons include a low personal credit score, a short business history, or insufficient business revenue. The notice will also tell you how to request a copy of the credit report they used, which you can review for errors.
If your personal credit score is the barrier, you can work on improving it before reapplying. Pay down existing credit card balances, make all payments on time for several months, and dispute any errors on your credit report. This typically takes three to six months to show improvement.
If your business is too new or your revenue is too low, consider a secured business credit card, which requires a cash deposit as collateral. These cards are easier to obtain and can help you build business credit. Once you have used it responsibly for 12 to 18 months, you may be able to move to an unsecured card with better terms.
How business credit cards affect your personal and business credit
A business credit card can help you build business credit if the issuer reports to business credit bureaus. Over time, on-time payments and low balances will improve your business credit score, which lenders use when you borrow for business purposes. This is separate from your personal credit score, though both matter.
Your personal credit score may dip slightly when you first apply because the issuer will do a hard inquiry into your credit report. This dip is temporary and usually recovers within a few months. If you carry a high balance on the card, it can lower your personal credit score because credit scoring models look at your total credit utilization (the amount you owe across all cards divided by your total credit limits).
To protect both your personal and business credit, pay the card balance in full each month or keep the balance below 30 percent of your credit limit. Make all payments on time. If the card issuer reports to business credit bureaus, this payment history will build your business credit score, which can help you borrow at better rates later.
Frequently Asked Questions
Do I need an EIN to get a business credit card, or can I use my Social Security number?
If you operate as a sole proprietor with no employees, you can use your Social Security number instead of an EIN. However, some card issuers prefer an EIN because it keeps business and personal credit separate. You can obtain an EIN free from the IRS at irs.gov, and approval is usually immediate if you apply online.
Will applying for a business credit card hurt my personal credit score?
Yes, but only slightly and temporarily. The card issuer will do a hard inquiry on your personal credit report, which typically lowers your score by a few points. This dip usually recovers within three to six months. Applying for multiple cards in a short time will have a larger impact, so space out applications if you are considering more than one card.
Can I get a business credit card if my personal credit score is below 650?
Most mainstream business credit cards require a personal credit score of at least 650 to 700. If your score is lower, look for secured business credit cards, which require a cash deposit and are easier to obtain. Some online lenders and credit unions also offer business cards to borrowers with lower credit scores, though the terms may be less favorable.
How long does it take to receive the card after approval?
After approval, the card usually arrives within 7 to 14 business days by mail. Some issuers offer expedited shipping for an additional fee. A few online issuers provide a temporary digital card number you can use immediately while you wait for the physical card to arrive.
What is the difference between a business credit card and a personal credit card?
A business credit card is issued in your business's name and reports to business credit bureaus, helping you build business credit. Personal credit cards are issued in your name and report only to personal credit bureaus. Business cards often have higher credit limits and rewards tailored to business spending, but they also require you to provide business information during the application.