This article contains general information and is not intended to provide information that is specific to American Express, or its products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Business credit cards can help business owners do more than cover costs. They also may help you build credit, streamline purchases, manage finances and cash flow, and even earn valuable rewards.
It’s not just established businesses that can benefit, either. Different types of business owners, including freelancers, self-employed individuals, and gig workers can also apply. Whether you’re a college student offering landscaping services, a solo parent running a drop shipping business from your home, or the owner of a startup employing 50 people, you can apply for a business credit card.
What Is a Business Credit Card?
If you’ve used a personal credit card, a business credit card can work in much the same way. It’s a way to fund purchases, and you may make a minimum payment each month on any financed charges or pay off the card in full to avoid interest charges. Depending on the card, there may be other fees, too, such as annual fees or late fees.
Consider your qualifications and how they may impact which cards you’re eligible for.
Business credit cards may come with added benefits. A business credit card can help streamline your accounting by keeping your personal and business finances separate. You may also issue business cards to employees so they may have an easy way to make purchases for your business, too. Some credit cards can allow you to place spending limits on employee cards. Business credit cards may also have higher spending limits than personal cards.
Who Can Apply for a Business Credit Card?
Many types of business owners can apply for a business credit card. Newer business owners may face challenges in separating their personal finances from their business finances, an important aspect of bookkeeping. Getting a business bank account and credit card could be an important first step for solopreneurs, freelancers, and anyone with a side hustle. You could also qualify for a business credit card if you’re operating as a sole proprietor.
Larger and more established business owners running limited liability corporations (LLCs), partnerships, and corporations may benefit from using business credit cards, too. Giving purchase authority to employees could help them keep your business running smoother, whether they need to refuel delivery vehicles, purchase supplies, pay for travel expenses, or restock inventory.
What Are the Requirements for a Business Credit Card?
Business owners learning how to apply for a business credit card for the first time may be surprised by how simple the process can be.
Each credit card issuer is different, but in general, here’s what you might expect some issuers to ask for if you apply for a business credit card:
Business details: Your business’s name, address, age, and annual revenue
Taxpayer ID number: Federal Employer Identification Number (EIN), or your own Social Security Number if you don’t have one
Credit score: Your credit score can affect the approval decision. Lenders may use different types of credit scores from multiple agencies.
Number of employees: If you plan to request business credit cards for your employees
What Are Some Business Credit Card Features?
You have many options to choose from when it comes to business credit cards. Some business credit cards may offer additional features and benefits for cardholders, such as:
0% intro APR: These cards don’t charge interest for a certain period of time after opening the card, followed by the standard interest rate.
Travel rewards: These cards may offer rewards points on your business spending that you can redeem for travel purchases. Some may even allow you to book directly with points in a designated portal.
Cash-back rewards: Similarly, these credit cards may offer cash back on your spending.
Steps to Apply for a Business Credit Card
Here's an overview of the steps to take when applying for a business credit card:
Choose a card: Consider which features are important to you in a business credit card. Consider your qualifications and how they may impact which cards you’re eligible for.
Fill out an application: Most issuers allow you to apply for a business credit card online. You may need to enter basic details for your business and its owners, such as their names, addresses, EIN or SSNs, as well as your business’s annual revenue and age.
Provide additional documents: Be prepared to provide copies of certain business documents, if requested, such as your business license, formation documents, bank statements, etc.
Get a decision: Depending on the issuer and your credentials, you may receive an instant decision or your application may go into pending status if the issuer requires further review.
Receive your card: If you’re approved, the credit card issuer will send you a new business credit card. Keep an eye out for it in the mail and follow the listed steps to activate your card so it’s ready to use.
The Bottom Line
Applying for a business credit card can be a relatively simple process, requiring information you may have readily in hand. If you are approved for and begin using your business credit card, making payments on time can help you manage operations more smoothly, build your credit, and help grow your business.
The material made available for you on this website is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.