How to get a Business Credit Card

Wednesday, June 13, 2012 at 3:26pm by Site Administrator

The Process of Getting a Business Credit Card

Many business owners may benefit from a business credit card account. With proper management, a business card is an asset to a business. The business credit card allows proprietors to track business expenses and keep business expenses separate from personal charges. The business card generally allows the business owner to obtain additional cards for employee use. Finally, a business credit line will provide a business with additional cash flow at crucial points in time.

The process of getting a business credit card is not much different from applying for a personal credit card. First, you need to get your personal credit rating in shape. Whether you will qualify for a business credit card is generally based on your personal credit rating. Ensure your FICO score is good to excellent in order to qualify for a business card with an attractive interest rate.

The steps for obtaining a business credit card include:

  1. Review your personal and business credit reports for negative information. Take action to repair any negative information on your credit reports prior to applying for a business credit card.
  2. Shop around for the best business credit card for your needs.There is no substitute for shopping around for the best credit card for your business. If you travel frequently for business, a business card that offers travel rewards might be the best card for you. Compare interest rates and benefits, such as rewards, for several different business cards offered by reputable card issuing banks.
  3. Choose a credit card company that is trustworthy. If you have personal credit cards with a trustworthy card issuing bank, you may want to seek out business card deals that this company offers. However, shop around to compare other business card offers from competing credit card companies. Select only a reputable and trustworthy company. Many “fly-by-night” business cards are available. Ensure that the company you choose is a reputable one.
  4. Obtain a Federal EIN if you do not already have one. The Federal EIN is the business tax identification number. The IRS issues the FEINs over the phone and online. You will need the FEIN when you apply for the business credit card.
  5. Apply for your chosen card online, over the phone or via fax application. Most business cards will allow you to apply online. However, if you have reservations about sending your personal and business information over the internet, you may also apply over the phone or via a faxed application.
  6. Enter your business information on the application. Business information that will be required is your company’s estimated annual revenue, the number of employees and type of business.
  7. Review all information on the application for accuracy. Take the time to review the information thoroughly before submitting.
  8. Sign and submit the application.

The application will be reviewed by the credit card company. Your credit information will be evaluated and the information you provided will be checked. If you qualify and are approved for the business credit card, the credit card company will notify you and send your card and contract to you via U.S. Mail. If you are denied, the credit card company is required to provide you with the opportunity to request your credit report for review.

Business credit cards may be an asset for businesses of all types. However, business cards may present opportunities for the business to get into credit trouble. Make sure to always pay the bill by the due date, never make any purchases that will take the card over the credit limit and read all of the documentation provided with the card. Pay particular attention to the conditions under which the rates may change for the card. Protect your business credit card account just as you would protect your personal credit card.

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