Business Credit Cards That Do Soft Pulls

Distinguishing Credit Inquiry Types

Understanding credit inquiry types is important for managing financial profiles when seeking business credit. A “soft pull,” or soft inquiry, occurs when a credit report is checked without a formal application for new credit. These inquiries are typically used for pre-approvals, background checks, or existing account reviews for credit limit increases. Soft pulls are generally not visible to other lenders and do not impact credit scores.

In contrast, a “hard pull,” or hard inquiry, occurs when a lender accesses a credit report after a formal application for new credit, such as a loan or credit card. This type of inquiry indicates to other potential lenders that the individual is actively seeking additional credit. Hard pulls can cause a temporary, slight dip in credit scores, usually lasting for a few months, and they remain on a credit report for up to two years. The distinction between these inquiry types is significant for those concerned about maintaining their personal credit score while exploring business financing.

Identifying Business Credit Cards Using Soft Pulls

Not all business credit cards use soft pulls for initial applications; policies depend on the card issuer’s underwriting guidelines. Certain financial technology companies and some major banks may use soft pulls for pre-qualification processes or specific business card products. These cards might focus more on the business’s revenue and operational history, though a personal guarantee from the applicant is a common requirement. A soft pull can be a preliminary step before a full application that may involve a hard pull.

To identify business credit cards that might use a soft pull, researching issuer websites directly is a practical approach. Many financial institutions provide details about their application processes, including the type of credit inquiry, in their frequently asked questions or terms and conditions sections. Reputable financial news and analysis platforms specializing in credit products can also be valuable resources, as they often compile and update information on issuer policies.

It is important to verify the current inquiry policy, as policies can change over time. An initial soft pull for pre-qualification does not guarantee the final application will also be a soft pull; a hard pull often occurs at the full application stage, especially with a personal guarantee. Factors like credit product type, pre-qualification status, and issuer risk assessment models influence the inquiry type.

Preparing for and Submitting Applications

Before submitting a business credit card application, gathering all necessary information and documentation is an important preparatory step. Applicants will typically need to provide the business’s legal name and its organizational structure, such as a sole proprietorship, limited liability company (LLC), or corporation. An Employer Identification Number (EIN) is usually required for most business structures, while sole proprietors may use their Social Security Number (SSN) if they do not have an EIN. The business’s physical address, phone number, and industry type are also standard requirements.

Further financial details for the business, including its annual revenue or sales figures and the number of years it has been operating, are consistently requested. Since most business credit cards require a personal guarantee, the applicant’s personal information is also necessary. This includes their full name, home address, Social Security Number, and personal annual income. This personal information helps the issuer assess the applicant’s individual creditworthiness and financial stability.

Once all the required information is meticulously prepared, the application process typically involves navigating an online portal on the issuer’s website. The applicant will input the gathered business and personal data into the designated fields. Before finalizing the submission, it is important to carefully review the card agreement, terms, and conditions to understand interest rates, fees, and other obligations. After clicking the “submit” button, applicants usually receive a confirmation message, and the issuer may follow up with requests for additional documentation or provide a decision within a few business days to a few weeks.