What Is Needed to Get a Business Credit Card?

Business credit cards are a useful financial tool, allowing businesses to manage expenses, track spending, and build a credit history separate from personal finances. They can also offer rewards tailored to business needs, such as points on office supplies or travel. Obtaining a business credit card requires understanding what information is needed and how financial institutions assess eligibility.

Understanding Eligibility Requirements

Lenders consider various aspects of both the business and the applicant when evaluating a business credit card application. The legal structure of a business (e.g., sole proprietorship, LLC, or corporation), operating history, and annual revenue are key factors. Established businesses with longer histories often demonstrate greater stability.

An applicant’s personal credit score holds substantial weight, particularly for small or newer businesses. Most issuers review the owner’s personal credit history, often requiring a good or excellent score, typically a FICO score of 690 or higher. This is because most business credit cards involve a personal guarantee, meaning the individual applying for the card is personally responsible for the debt if the business cannot repay it.

Gathering Necessary Information and Documents

Before applying, a business owner should compile specific information and documentation. This includes the full legal business name and address. Businesses generally need an Employer Identification Number (EIN), a unique nine-digit tax ID assigned by the IRS. Sole proprietors, however, may use their Social Security Number (SSN) instead.

The business’s legal structure, whether it is a sole proprietorship, partnership, LLC, or corporation, must be identified. Annual business revenue is another crucial data point, which can typically be estimated from recent financial statements or tax returns. Providing an accurate figure helps lenders assess the business’s financial health and repayment ability.

Industry type, often categorized by a North American Industry Classification System (NAICS) code or a Standard Industrial Classification (SIC) code, is also frequently requested. These codes help lenders evaluate the risk associated with lending to businesses in particular sectors.

For the applicant or guarantor, full name, personal address, and Social Security Number (SSN) are required. Personal annual income is also requested, even with business revenue, to further assess repayment capacity, especially given the personal guarantee. Other common data points requested include a business phone number, email address, and the number of employees.

The Application Process

Once necessary information is prepared, the application process can begin. Business credit card applications are commonly submitted online, though some financial institutions may offer in-person options at a bank branch or via mail. Applying online often provides a streamlined experience and may lead to quicker decisions.

For online applications, the process typically involves navigating to the issuer’s secure application portal. Applicants will then input the gathered business and personal information into the designated fields. It is important to carefully review all entered data for accuracy before finalizing and submitting the application.

After submission, the timeframe for approval can vary. Some applications may receive an instant approval or denial within minutes, particularly if the system can quickly verify all information. However, many applications go into a pending review status, which can take several days or up to a few weeks for a manual evaluation. During this period, the issuer might request additional documentation or verification, and prompt responses to these requests can help expedite the decision. If approved, the physical card typically arrives in the mail within approximately 7 to 10 business days, although some issuers may provide a virtual card for immediate use.