Business Credit Cards 101: How to Get A Business Credit Line

One of the best things you can do as a small business owner is opening a credit card account for your financial needs. You’ll get the advantage of having a highest purchasing power, while also enjoying additional benefits depending on the card you choose.


Common Benefits


Each business credit card will have its own incentives and rewards so checking through your options is important. In addition, you have a way to easily keep your business and personal expenses apart from each other. It also provides you with a way to get your business credit history going so you can ask for further financing in the future. Most businesses have a credit card. Simply qualifying for one shows that you are an authentic business and able to pay for your expenses.


Card Application


If you have a personal credit card, the process for applying for a credit card is similar. You’ll give your company name, the structure of the business, the location and data when the business was launched, and the tax identification number for your business. If you don’t have a tax ID number, you will give the issuer your social security number instead. The issuer will also want to know the net profit of your company, as well as your gross annual sales.


Qualifying for a Card


When a credit card company determines whether you are approved for a card, they will look at your credit history and income, just like a personal card approval process. The only reason your personal history would be used is if your business is new and has no history to draw from. Most businesses with an excellent track record are approved without an issue, but those with a spottier history may have more difficulty.


Things to Remember


While your business credit card is connected to your business and will only be used for the needs of that business, you are liable for any charges if your name is on the card. Some companies report all business credit card activity to your personal credit report, others only do so if the activity is negative, and some don’t report it at all.


It’s important to be truthful when applying for a small business credit card. If you lie about your numbers, you can end up in a sticky situation. Some issuers may need additional documentation or do regular audits to ensure you are being honest. Keep that in mind and be honest when applying. If you aren’t approved, you can always work to improve your chances next time.