Business credit card pre-approval: What to know

Applying for a new business credit card can be an exciting way to find out which offers you are eligible for. But you may be wondering what the approval process will entail. And what if you’re not approved? In some cases, you may be able to seek pre-approval. Business credit card pre-approval can help you understand whether your business may be eligible for a new credit card. It can also accelerate the application process.

Read on to learn more about business credit card pre-approval and how it could benefit your organization.

What you’ll learn:

• Getting pre-approved for a business credit card can help you compare different types of credit cards for your company before formally applying.
• You’ll often need to provide some information, like your business name and address, to get pre-approved for a business credit card.
• Pre-approval for business credit cards doesn’t impact your personal credit score as it doesn’t involve a hard credit inquiry.

To be pre-approved for a business credit card means the credit card issuer has reviewed your information and determined whether you meet the eligibility requirements for an offer or set of offers. Each card issuer has different criteria for pre-approval. So, it could be worthwhile to compare cards and use the pre-approval process to see which your business could be eligible for.

If you’re in the market for a business credit card, getting pre-approved can help save valuable time and effort before starting the formal application process. But not all business credit card issuers offer pre-approval, so you’ll want to find out which ones do before you apply.

To get pre-approved for a business credit card, first identify the card type that meets your organization’s needs. Maybe it’s no annual fee, the ability to give employee cards, cash back or travel rewards. Then, you can start the pre-approval process if the card issuer offers it.

In some cases, you’ll be able to get pre-approved for a business credit card directly on the card issuer’s website. However, pre-approvals aren’t as common for business credit cards as they are for personal credit cards, and the process can be more complex.

To get pre-approved for a business credit card, you’ll generally need to provide the following information:

• Business identifiable information (business name, address, phone number)
• Business details (annual revenue, industry, ownership structure)
• Your personal information

The lender will review details of your business and financial well-being to determine which offers you’re pre-approved for. 

So, why should your business get pre-approval for a business card? First, you can get a head start on understanding what you may be eligible for prior to submitting a formal application. Plus, the pre-approval process is typically quicker and can help you narrow down your business credit card options prior to applying.

Pre-approval also allows you to get a sense of your initial eligibility without involving a hard personal credit inquiry. So you can explore your options without putting your personal credit at risk. 

Just like pre-approval for a consumer credit card, as a business owner, you can do a few things to help increase your chances of getting pre-approved for a business credit card, including:

Your personal credit scores reflect your personal creditworthiness, while your business credit scores help determine your company’s financial health and credit risk. And while they’re separate scores, there could be some overlap in which scores get disclosed to the credit bureaus when you’re applying for a business credit card. This is especially true if you’re just beginning to build business credit.

That’s why working to improve both your personal and business credit scores by doing things like making timely payments and keeping your credit utilization low could factor into your pre-approval chances. 

Before you start the pre-approval or application process, make sure your financial records are in good shape. Along with basic information about your company, like its name, contact information, industry, years in business, etc., you’ll need to provide information about your business income. Some credit card issuers may also need additional documentation like your employer identification number (EIN) or tax ID number.

Since pre-approval doesn’t typically result in a hard inquiry, if possible consider getting pre-approved for several different cards before you apply. Look for credit cards that align with your credit history and your organization’s needs. Then, once you’re pre-approved, you can select the best business credit card offer for your company.

Once you’ve been pre-approved for a business credit card, make sure you understand the fine print by reviewing the offer details carefully. Then, you’ll still need to submit your application and wait for the credit card issuer to officially review and approve it. This might take just a few minutes, but in some cases, you may have to wait a few days for approval. Your physical card should arrive shortly thereafter.

Here are answers to a few frequently asked questions about the business credit card pre-approval process.

The ability to get pre-approved for a business credit card is a little less common than getting pre-approved for a consumer card. But if the option is available, pre-approval lets you know which business credit card offers you are approved for without harming your credit. And you can compare different options before selecting the right card for your organization and its goals.

If you’re looking for a credit card that offers your company rewards like cash back or bonus miles, compare Capital One business credit cards and start your application today.