How to apply for and get a business credit card
As you start your business journey, it can be hard to draw a line between your personal and business finances. As your business grows, you’ll likely see a growing need to keep these expenses separate. That’s where a business credit card can help.
When it comes to business credit cards, there are many options. To get a business credit card, it’s helpful to research different card options and determine your eligibility first. From there, you can apply for a business credit card by providing necessary personal information and financial details about your business.
What you’ll learn:
- A business credit card can help you grow and manage your business while increasing your purchasing power.
- The application process for a business credit card typically involves reviewing card options, determining your eligibility and gathering the information needed to complete your application.
- If you don’t have an established business credit score, the credit card issuer will likely check your personal credit scores to determine eligibility.
- You may consider seeking pre-approval for a business credit card to better determine which offers you’re eligible for before applying.
How to get a business credit card in 6 steps
It’s relatively straightforward to apply for a business credit card. In fact, much of the process is similar to applying for a personal credit card. Let’s take a closer look at the different steps involved in applying for a business credit card.
Step 1: Research business credit cards
There is a wide range of business credit cards that suit a variety of business needs. It’s just a matter of matching card offerings with your needs. For example, if you travel often, you may want a business credit card—like the Venture X Business from Capital One—that offers travel points and miles incentives. If you plan on using your credit card for big expenses, no preset spending limit (NPSL) may be your top priority. Consider your business’s current needs and how they might evolve.
Step 2: Determine your eligibility
Most issuers of small business credit cards will check both your personal and business credit scores. Each business credit card will indicate its recommended credit score ranges for qualification. But in general, the higher your scores, the more likely it is you’ll be approved for a business credit card and the better the terms you could receive.
Before applying, it’s a good idea to open a business bank account. Having one can demonstrate your business’s legitimacy and help credit card issuers assess your financial stability.
Step 3: Consider seeking pre-approval
Certain business card issuers allow you to get pre-approved for a business card to determine which offers you may be eligible for. For example, with Capital One, you can provide basic information about your business and answer some preliminary questions. In many cases, you can expect to receive card offers tailored to your business within seconds. Learn more about Capital One Business credit card pre-approval.
Step 4: Gather what you need to apply for a business credit card
To save time, gather everything you need for your business card application. Typically, this includes:
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Contact information (business mailing address and phone number)
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Legal name of your business
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Your Social Security number (SSN) and legal name (if you’re a sole proprietor)
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How long your business has been in operation
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Your role in the business
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Federal tax ID number (TIN)
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Industry type (the North American Industry Classification System [NAICS] code)
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Legal structure (corporation, partnership, nonprofit, LLC or cooperative)
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Annual revenue
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Total monthly expenses
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List of beneficial owners or business controllers (for corporations and partnerships)
Step 5: Apply for a business credit card
When you’re ready to apply, you can fill out an online application for a business credit card. It usually takes less than 10 minutes to complete. You may be asked to verify certain information or provide additional details as your application is reviewed.
Step 6: Wait for the approval decision
Once you submit your application, the card issuer will review it. You may be approved within a few minutes or a few days. Once approved, you’ll receive your business credit card by mail in about seven to 14 business days.
Getting a business credit card FAQ
Here’s more information about applying for a business credit card.
What are the benefits of a business credit card?
Business credit cards can help you better manage your business finances by separating your business and personal expenses. They can also deliver other important benefits, including:
- Helping you build credit history
- Ensuring smooth cash flow
- Making recordkeeping easier
- Delivering attractive rewards and incentives for using the card
How should I choose a business credit card for my business?
Here are some practical tips to keep in mind to help you make the most informed choice when researching your business credit card options.
- Review your business expenses. Consider your current spending patterns to decide which rewards programs—like travel miles and cash back—would benefit your business most.
- Compare fees and interest rates. If you carry a card balance each month, a low interest rate will be important. Keep in mind that some business cards may have annual fees, so it’s helpful to review this information beforehand.
- Understand the qualifications necessary for approval. Depending on the business credit card, certain eligibility requirements, like a personal guarantee and personal credit score thresholds, may impact approval.
- Look into special sign-up or welcome bonus offers. Certain business credit cards offer incentives to new cardholders. When researching card options, it’s helpful to understand the spending requirements to qualify for the offer.
When is the right time to apply for a business credit card?
The right time to apply for a business credit card will vary depending on unique aspects of your company, including things like where you are in your seasonal business cycle. That’s why it’s important to consider your business needs, goals and requirements and credit preferences as a business owner.
Learn more about when you may need a business credit card with this guide.
Does applying for a business credit card affect personal credit?
Applying for a business credit card can affect your personal credit if the credit card issuer conducts a personal credit inquiry as part of the application review process. Each credit inquiry may lower your credit score and show up on your personal credit report.
Key takeaways: Applying for a business credit card
A business credit card can be an important management tool that helps your business maintain ample cash flow, establish a business credit history and take advantage of important perks and rewards. The best business credit card for your company depends on how you want to use that credit and what rewards will work best for your enterprise.
Ready to find a card that will evolve alongside your business needs? Compare Capital One Business credit cards today.
