What credit score is necessary for business credit cards?

If you own a small business, acquiring one or more small-business credit cards for your expenses could be a wise choice. Even if your business is modest, new, or not formally established, you might still qualify for a business credit card.

If you're prepared to apply for a new credit card for your small business, you may be curious about your approval chances. Here's what you need to understand regarding approval for a business credit card.

What credit score is required to obtain business credit cards?

Most lenders will check your credit with both consumer and business credit bureaus when you apply for a business credit card. However, if you don't have a formal business structure, like a corporation or Limited Liability Company (LLC), and lack a federal Employer Identification Number (EIN), you probably won't have any business credit history.

Typically, you'll require a good or excellent credit score to get approved for a business credit card. Nevertheless, some issuers might accept a lower credit score, particularly if your business is established or generates substantial annual revenue.

How to verify your credit score

You can check your personal credit score for free through several options. Some credit cards provide a complimentary FICO score just for being a cardholder. It's also feasible to check your business credit score, although this usually involves a fee.

How to enhance your credit score

If you aim to boost your personal or business credit score, focus on responsible credit management and adopt best practices.

For instance, make sure to pay your bills punctually, refrain from applying for multiple new credits in a brief timeframe, and lower your credit utilization. Setting up auto-pay for your accounts can help ensure you never miss a payment.

What is the most accessible business credit card to obtain?

The simplest business credit card to acquire is a secured credit card. These cards require a security deposit but offer a low-cost option for business owners with poor credit who need access to credit.

There are several secured credit cards for consumers, which may be a preferable choice if your primary goal is to enhance your credit score. If you're seeking a business credit card but have poor credit, you might consider options like the Wells Fargo Business Secured Credit Card (currently not accepting new applications) or the Capital One Platinum Secured Credit Card. However, as your credit improves, you’ll likely want to transition to a more conventional business credit card that offers lower fees, greater rewards, and enhanced benefits.

The information regarding the Wells Fargo Business Secured Credit Card has been independently gathered by Dinogo. The card details on this page have not been verified or provided by the issuer.

Is it possible to obtain a business credit card with bad credit?

You might be able to secure a business credit card even with bad credit by opting for a secured card. However, you will generally need to improve your credit prior to applying for traditional business credit cards that offer rewards.

Whether you opt for a consumer or a secured credit card designed for business use, your focus should be on paying your balance in full and on time every month, maintaining a credit limit below your threshold, and minimizing your credit utilization. Once your credit score improves, you may qualify for a business credit card.

What steps do I need to take to get approved for a small-business credit card?

You can usually apply for most business cards online, and the process is akin to applying for a personal credit card. However, instead of personal questions about monthly rent, mortgage, and annual income, you’ll typically encounter inquiries regarding your business. Common questions include the legal business name, business type, industry, number of employees, and annual revenue.

To ensure you complete the application accurately, refer to the following guides:

• How to obtain a business credit card
  
• Steps to apply for an Amex business card
  
• How to submit an application for a Capital One business credit card
  
• Guide to completing a Chase business credit card application
  

If you're applying as a sole proprietor, make sure to use your name as the business name unless you've registered a DBA name with your local or state authorities.

Can I use my EIN to apply for a credit card?

When you apply for a small-business credit card, you will typically need to provide your business's federal Employer Identification Number (EIN) and social security number. However, if you’re applying as a sole proprietor, you won’t need to supply an EIN.

Typically, you'll need to provide your social security number when applying for business credit cards, as the primary cardholder is often personally liable for debt incurred on the account. This is a key reason why some businesses opt to transition from a small-business credit card to a corporate card as they expand.

Are business credit cards difficult to obtain?

Business credit cards can be fairly easy to acquire if you have excellent credit and a legitimate business with strong revenue. However, if your credit isn't stellar or your business appears weak, you might face challenges getting approved for certain small business cards.

You might encounter difficulties obtaining a business credit card if you fabricate a name for your business or are unable to provide convincing business information during your conversation with the issuer. However, you can increase your chances of approval by referring to our guide on applying for a business credit card.

In summary

Many top-notch small business credit cards feature bonus categories related to business expenses. Most credit card issuers assess both personal credit and business credit (when applicable) to determine approval for an application. If you run a successful business and possess a high credit score, you may have a good chance of being approved for a small-business credit card.