How To Obtain a Business Credit Card – Everyday people keep asking how to obtain a business credit card. Relax it’s quite easy and once you apply and get one, you are in for extra rewards and perks.
These cards, come with bigger bonuses and more rewards all at a lower rate. They also help you separate your finances, and you do not need to own a big business to get one.
What are Business Credit Cards
These are credit cards that are specially designed for business owners and people who have business expenses. It designed mostly for business purposes rather than for personal use, which can range from anything small expenses for a side business to financing a startup idea.
Benefits of Business Credit Cards
Business credit cards, offer bigger sign up bonuses which are the same or significantly higher than those offered by their personal counterparts.
You enjoy lower annual fees and get higher sign up bonus as well as better rewards rate for the same annual fee. The annual fee are often waived for the first year.
There’s new bonus spending categories which are not offered on personal credit cards. They include internet and phone bills, advertising expenses, and office supplies.
Enjoy double rewards by applying higher rewards if they have different bonus spending categories.
They acts as a great way of separating purchases and making budgeting and tax season a lot easier.
Does not appear on your personal credit report. This is because most credit card issuers do not report business credit card activity to consumer credit bureaus, which keeps the activity separate from your personal credit report. This comes in handy, when you find your business in a rough spot and end up running up a balance.
It helps in building your business credit score, since most business credit cards are not reported to commercial credit bureaus.
How to Obtain a Business Credit Card – Apply For Business credit card
For those who have a corporation or a registered LLC, application can be started using that information. But if you do not have one you can also apply as a sole proprietor making use of your social security number.
If you are going for the option of applying as a registered corporation or LLC, you can proceed by adding your legal business name and Employer Identification Number or EIN. But if you are applying as a sole proprietor, you can provide your legal name under the business’s legal name field.
But here, rather than provide an EIN, in the tax identification number field, you will be providing your social security number. You can also make use of your home address and personal phone number for the business contact information.
You will also be required to explain the type of business you are starting or currently running, what industry it is, and your role in it. You will state how long you’ve been in business as well as estimate your annual revenue.
If your business is a new one, you can put “O” for your annual revenue field, and note also that your anticipated spending will also be estimated.
On the whole, you don’t need to generate a lot of income to be approved for a business credit card.
Best Business Credit Cards
- Flat-rate rewards or bonus categories
- Travel vs. Cash-back business credit cards
- Business credit cards without an annual fee
- Business credit cards with big sign-up bonuses.