There will be a lot of items on your to-do list when you start a new business, including getting a business bank account and a business credit card. Finding a card available for startups and qualifying can be confusing.
Here, we’ll explain how new entrepreneurs can get and take advantage of small business credit cards.
Benefits of Business Credit Cards for New Businesses
Business credit cards have many advantages. They can provide:
- Access to a line of credit that can be used for start-up financing
- Excellent record keeping for business expenses
- Separation of professional and personal finances
- Benefits such as cash back or travel rewards
- Superior protection against fraudulent use
How to choose the best credit card for your new business
When choosing a credit card for your business, you should consider two key factors:
How should I plan to use the card?
If you want to use your credit card as a line of credit and pay for your purchases over time, you’ll need to look for a low-interest card. An introductory offer of 0% APR for a year or more can be helpful in providing start-up capital. Low-rate balance transfers can also be useful if you need access to a line of credit for short-term cash flow financing.
On the other hand, if you want a card for business expenses, you can look for a card with a rewards program like cash back, travel points, or other perks. Many of these cards also offer sign-up bonuses that can be especially valuable for new businesses trying to make every dollar count.
What am I eligible for?
Unlike small business loans, most credit card issuers don’t require a lot of business time. Many cards will allow you to get a card just days after starting your business. But in this case, they will check your personal credit and probably require you to have a good to excellent personal credit score.
They’ll also want to make sure you can afford to pay off the balance by asking about your income. For most cards, revenue can come from a variety of sources, not just the company. Your income can affect your credit limit.
What credit score is needed to get a business credit card?
Most business credit cards check personal credit. Although many don’t specifically reveal their minimum credit score requirements, you can expect most cards to require good credit (650-680+) or excellent credit (700+).
There are a few business credit cards that don’t check personal credit, but they often require the business to generate fairly significant revenue. These can be called company cards.
8 Best Credit Cards for New Businesses
Every business is different, so there’s no one credit card that meets all needs. The cards shown here are available to new businesses that qualify.
This is a popular first business credit card for small businesses. it offersand the annual fee is .
For cardholders who want to pay for startup purchases over time, this card offers aas well as a solid welcome offer:
If you want a card with a generous welcome bonus, you can’t go wrong with this card:. And if your business takes you outside of the US (or you have overseas suppliers), you’ll save money with a foreign transaction fees.
If you’re planning on making business purchases on Amazon, you might want to check out this map.
If you want a card to pay for start-up expenses, you might consider this card.
Divvy is an expense management platform accessible with a business credit card. It’s a great way to manage business expenses. Get free employee cards with expense controls.
This Amex card is a popular cash back card and with a simple rewards structure, it does not require you to follow bonus cash back spending categories.
This card offers a healthy welcome offer:
How do new businesses get credit?
Most business credit cards report to commercial credit bureaus, making them a good choice for establishing business credit. If you maintain a good payment history, the card can help you establish good credit scores for your business.
However, the decision of whether or not you will qualify will likely depend on your personal credit scores. As long as you have a good personal credit history (and meet other requirements such as income), you should be eligible for a business credit card. There are only a few business credit cards for bad credit.
Can you use an Ein to get a credit card?
You may be asked for an Employer Identification Number (EIN) when you apply. An EIN is your business identification number used for tax purposes. (This is not required for all businesses.)
Again, however, most card issuers require a Social Security Number (SSN) to verify your personal credit history. A few cards don’t require a personal credit check, but these cards are generally not available to new businesses with no income.
Similarly, only a few cards do not require a personal guarantee.
How do I get a business credit card with a new LLC?
Many of these cards are available to new LLCs, as well as sole proprietors, provided you meet other criteria such as income and the issuer’s credit requirement.
Can I get a business credit card without business income?
Yes, many of these cards are available to small business owners as long as you meet minimum income requirements, which don’t always have to come from the business. Unless the application specifies business income, you may include personal income and/or other income.
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