How to Get a Business Credit Card: Step-By-Step Guide

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Business Credit Card?
Reasons to Get a Business Credit Card
Access to working capital A business’s income and expenses don’t always align. A business credit card can cover expenses while you’re waiting to receive income, either through sales or invoices. Building your business credit score As you make on-time payments on your card, you will be building a business credit history that is separate from your personal credit history. This could help you qualify for more business financing opportunities in the future. Earning rewards Some business credit cards offer perks, such as points, miles, cash back, gift cards, extended warranties on purchases, and travel accident insurance. Some even offer a welcome bonus for signing up. Keeping business and personal finances separate Having a dedicated business credit card for your business expenses maintains an important separation between your business’s financials and your personal finances. This makes things easier come tax season and, if you are able to open a card using just your business’s Employer Identification Number (EIN), can help protect your personal finances from any potential financial or legal trouble that arises with your business. Emergency financing Having a business credit card in your back pocket can serve as a financial safety net in the event that you need to cover unexpected business expenses.
How to Get a Business Credit Card
1. Do Your Research
2. Select the Right Card for Your Business
3. Check Your Credit Scores
4. Get All Necessary Documents
Business name and contact information Tax ID number or EIN Social security number for yourself and any business partners who own 20% or more of your company Your incorporation documents (to confirm the number of years you’ve been in business) Recent financial statements that show your revenue and monthly spending estimates A list of employees who will need cards
5. Apply for Your Business Credit Card
Factors That Affect the Approval of Your Business Cards
Business Type and Size
Duration in Business
Business Revenue and Expenses
Availability of Personal Guarantee
Personal Credit Score
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Frequently Asked Questions
About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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