Startups may face hurdles in getting approval for a small business credit card without robust personal credit. Here’s what you need to know about how to get small business credit cards:
- Most cards require a personal guarantee, which means the business owner is liable for any business debt incurred on the card.
- Healthy personal credit and verifiable income can facilitate a smoother application process for new businesses.
- Application for small business credit cards can often be made via the issuer’s website.
- Options to apply without a personal guarantee or Social Security number are rare and potentially require alternative assurances like deposits or collateral.
How Can You Get a Startup Business Credit Card With No Credit?
If you have no credit or bad credit, your business credit card options will be limited since most small business credit cards use the owner’s personal credit history to decide whether to extend credit. But you’re not without options. Secured business cards may be a possibility, as are business cards for fair credit like the Capital One® Spark® Classic for Business*.
How Can You Get a Business Credit Card for a New Business?
New businesses often lack business credit and strong revenue, but this won’t necessarily disqualify you for a new credit card. Generally small business card applications are evaluated on the strength of the owner’s personal credit history. The business owner is then personally responsible for any outstanding debts of the company. Depending on the issuer, the personal guarantee may be enough to get an approval. In some cases, you may be required to augment your application with a business plan, bank statements or other evidence of expected or future revenue.
Before applying, be aware of the liability and impact to your personal credit that a business credit can have. If you’re new to business credit cards, talking to a representative over the phone or in person at a bank branch may improve your understanding of the process.
How to Apply for a Small Business Credit Card
You can apply for a small business credit card online or in person by visiting your business banker.
Applying for a small business card requires basic information such as:
- Business structure (e.g. sole proprietorship, partnership)
- Employer Identification Number (EIN), if applicable
- Legal business name
- Year business was founded
- Business address
- Business gross revenue
- Industry type
- Estimated monthly spending
You’ll also be asked for personal information such as the following:
- Name
- Birthdate
- Address
- Annual income
- Monthly rent or mortgage payment
- Social Security number
How Long Does It Take to Get Approved For a Business Card
The approval process varies by card issuer and applicant. In some cases, you may get instant approval for a business credit card. In others, more information about your business may be required to evaluate your application. This could range from general identity to revenue verification, depending on the circumstances.