How to apply for a business credit card (step-by-step)

How to apply for a business credit card

When you apply for a small business credit card, your application will go through several stages. 

Step 1: Gather required information

Collecting relevant details before you start your application will make future steps move more smoothly. This information can help you determine which cards may be suitable for your business as well as making it easier to complete the final application process.

Here’s a quick checklist of what you may need before starting:

• Personal information: Legal name and contact details.
• Tax identification: Business EIN (if you have one), though sole proprietors may use a Social Security number instead.
• Beneficial owner information: Personal details for anyone else who owns 25% or more of the business.
• Business information: Legal business name, address, phone number, industry, and business structure (sole proprietor, LLC, corporation, etc.)
• Business details: Time in business, number of employees, and estimated monthly spending.
• Revenue information: Annual business revenue (or projected revenue if you’re just starting).

Step 2: Compare and choose your card

Many business credit cards offer similar sets of features. Make sure you compare each card’s details side-by-side to ensure you’re not missing any fine print that could make one a better match for your business. We’ll walk through more detailed guidance on selecting the right business credit card later in this article. Narrowing things down based on credit requirements, rewards, fees, and other card benefits is an essential step in how to apply for a business credit card.

Step 3: Complete the application

Like personal credit cards, completing a business credit card application can be done online, by phone, or in-person. If you’ve gathered all your details in advance, the application should be straightforward (though tedious).

Usually, choosing to apply for a business credit card online is the most convenient option, since you can read through all the questions on the application form in advance or pause to collect other details you don’t know off the top of your head. Most applications can be completed in 10 minutes or less.

Step 4: Credit check and verification

Once you’ve submitted your application, the card issuer will run a credit check and consider your business details as provided. Although your personal credit report is a major factor in business credit decisions, most issuers also look at your reported or expected income, business debt, and other financial considerations.

Most business cards check your personal credit score through one or more of the three major consumer credit bureaus: Equifax, Experian, and TransUnion. This typically results in a hard inquiry on your report and may have a minor impact on your consumer credit score. 

Step 5: Receive your decision

You’ll likely receive an update on your application status quickly after submission, which could come back as an immediate approval, denial, or “pending review”. 

On pending applications, your card issuer will confirm whether you fit the business credit card requirements, which could take a week or two. In some cases, the card issuer may reach out to request clarification about your application.

You’ll be mailed a physical card if you’re approved. This may take another seven to 10 business days, though some banks expedite shipping. Some may provide an account number instantly for online transactions.

Step 6: What to do if you’re denied

Card denials can feel personal, but they aren’t always a final decision. In many cases, you can contact the card issuer and ask to have the application reconsidered. Expect to provide more details about your business finances, including documentation or other proof. This additional information and clarity may result in approval.

If after reconsideration, your application is still denied, you will receive a letter by mail explaining why. Common reasons for denial may include a credit score below the issuer’s requirements, high existing debt relative to your income, limited credit history, or inconsistent details within your application. The explanation can assist with your next application, either by helping you find a more suitable card or reapplying in the future when your business finances are more in line with requirements. 

Who can apply for a business credit card?

Anyone with a business intended to earn a profit can apply for a business credit card. The part that’s less obvious is how broadly-defined “business” can be. Sole proprietors, whether fresh entrepreneurs or established professionals, LLCs, and corporations are all potentially qualifying businesses.

A business credit card for sole proprietors can be available to freelancers, online sellers, and even side hustlers. You may qualify even as you’re just getting started, before you’ve earned a single penny.

When should you apply for a business credit card?

You can apply for a small business credit card as soon as you start your business, even if you’re not formally incorporated. This can be a smart way to organize your finances from the very beginning. You should especially consider applying if:

• You need an extra source of funding: Business credit cards offer access to working capital, which can help with paying for outside services, amplifying your business, building inventory stores, or simply smoothing out your cash flow. 
• You want to simplify bookkeeping: The first business finance rule is to keep your company and personal expenses separate. This may help protect your personal finances if there are any legal troubles with your business down the line. Keeping expenses separate can also simplify your bookkeeping and tax preparation.
• You want to build business credit history: Strong business credit can help you obtain financing when it comes time to scale your business. Since building credit doesn’t happen overnight, starting early is to your advantage. This can be as simple as charging purchases to your business credit card and paying your bill on time each month.
• You want to earn rewards on business spending. With business rewards credit cards, you’ll earn a return simply by using your card to pay for expenses you’d incur anyway. While 1% cash back doesn’t sound like a lot, it adds up with volume — and some cards offer returns well above 1%.

Applying early lets you take advantage of these benefits sooner, getting things started on the right foot and establishing good financial habits before your business gets even more complicated. Not all issuers report ongoing activity to business credit bureaus, so the impact on business credit can vary by card.

What do you need to apply for a business credit card?

Usually, you do not need to upload information or paperwork to apply for a business credit card. Instead, you’ll supply details to your card issuer through your application, with most information falling into one of three categories: 

1. Personal information.

• Legal name and contact details
• Total annual income
• Social Security number for credit evaluation
• This information may also be required for beneficial owners (anyone who owns 25% or more of the business)

2. Business information. 

• Legal business name and address
• Phone number and industry
• Business structure (sole proprietor, LLC, corporation)
• Time in business
• Number of employees

3. Revenue and tax information.

• Annual or projected business revenue
• Estimated monthly spending
• EIN, if applicable (sole proprietors may not need one)

Business credit card qualification requirements

Every card sets its own business credit card eligibility, but most provide only vague references to the specifics.

The best business credit cards require good to excellent credit for approval. 

• Excellent credit: 740+ on the FICO® scale
• Good credit: 670 to 739
• Fair credit: 580 to 669
• Poor: below ~580

This is because most business credit cards require a personal guarantee, meaning you’re personally responsible for repayment if the business can’t pay. Be aware that different issuers may have different criteria when it comes to what they consider good or better credit.

Cards, especially those with high limits or strong benefits and rewards, may also have stringent income requirements and debt-to-income considerations.

If you’re just starting out, or have fair personal credit, it can be strategic to apply for a midtier credit card that meets your business needs until your business is more established. Then, you can consider upgrading to or applying for a different credit card in the future. 

Someone actively working to rebuild bad credit may need to focus their efforts on secured business credit cards. These cards require you to fund your card with a cash security deposit, but still have many benefits: You can build business credit, easily account for your business expenses, and make payment transactions more convenient. 

How to choose the right business credit card

Consider fees and interest rates

• APR: Annual percentage rate (APR) refers to the interest charges on your balance if you don’t pay it off each month. Since rates can top 20% or more, this may be the most important factor in your decision if you plan to carry a balance. Applicants with excellent credit may qualify for lower APRs.
• Annual fees: Cards with annual fees often offer stronger rewards and perks. Calculate the potential dollar amount of what you’d earn through rewards or save via benefits and compare it to the annual fee to see if you’re money ahead.
• Foreign transaction fees: If you make international purchases or travel abroad, you’ll want to choose a card with no foreign transaction fees. It’s common for cards to tack on a 3% or more surcharge to all transactions made in foreign currencies, but there’s a growing number of cards that don’t.

Look for business-specific benefits

Business cards add value and convenience through perks like expense management tools, accounting integrations, free employee cards, purchase and other protections, and even luxury travel benefits. Though some benefits might be irrelevant, others could save you time, frustration, and dollars. 

Match rewards to your spending

Many business credit cards earn rewards on purchases. To make the most of this, you’ll first need to determine which type of rewards match your preferences best: points, miles, or cash back. 

Then, confirm which cards offer strong rewards in spending categories that align with your spending habits. Common bonus categories include advertising, office supplies, shipping, gas, dining, and travel, though some cards earn a flat rate across all purchases for ease. Review your business transactions over the past six months to identify your biggest spending areas and make sure you’re maximizing your returns.

Check for introductory offers

Business cards may offer a huge financing benefit to new cardholders through introductory 0% APR offers. This opens up cash flow for your business during the intro period, effectively letting you borrow money temporarily without interest. Introductory offers frequently last six to twelve months for qualifying cardholders. 

Once your introductory period is over, all new transactions will be subject to the standard APR — as well as any remaining card balance you didn’t pay in full before the end of the 0% APR period. That can make it important to determine a payoff plan before initiating charges.

Evaluate sign-up bonuses

Business cards may offer significant sign-up bonuses, either in addition to or instead of a 0% APR offer. These bonuses could easily be worth $500 or more as a new cardholder. 

While you may be inclined to pick the card with the biggest offer, remember that you’ll have to qualify the welcome offer by meeting the spending requirement. Some bonuses have high listed amounts that could stretch your finances and put you at risk of overspending. It may be better to choose a smaller listed bonus that you’ll reach through your normal spending levels. Or, time your application to coincide with when you have large transactions planned anyway for a fast and easy approach to earning a bonus.

The bottom line

Whether you own a large or a small business, having a dedicated card for your business is more than a convenience. With the right card, you’ll have access to capital when you need it, simplify bookkeeping, improve your credit, and earn rewards for expenses you had to cover anyway. By choosing the right business card and understanding the application process, you’ll open up access to one of the most valuable business tools available.

Frequently asked questions