How to apply for a business credit card

As you start your business journey, it can be hard to draw a line between your personal and business finances. But as your business grows, you’ll likely see a growing need to keep these expenses separate. That’s where a business credit card can help.

When it comes to business credit cards, there are many different options. This guide will explain how to apply for one and what to expect during the application process.

Key takeaways

• A business credit card can help you grow and manage your business while increasing your purchasing power.
• The process of applying for a business credit card typically involves reviewing card options, determining your eligibility and gathering the information needed to complete your application.
• If you don’t have an established business credit score, the credit card issuer will likely check your personal credit scores to determine eligibility.

It’s relatively simple to apply for a business credit card. In fact, much of the process is similar to applying for a personal credit card. Let’s take a closer look at the different steps involved in applying for a business credit card.

There is a wide range of business credit cards that suit a variety of business needs. It’s just a matter of matching card offerings with your needs. For example, if you travel often, you may want a business credit card that offers travel points and miles incentives. If you plan on using your credit card for big expenses, no preset spending limits may be your top priority. Consider your business’s current needs and how they might evolve.

Here are some practical tips to keep in mind to help you make the most informed choice as you research your business credit card options.

• Review your business expenses. Consider your current spending patterns to decide which rewards programs—like travel miles and cash back—would benefit your business most.
• Compare fees and interest rates. If you carry a card balance each month, a low interest rate will be important. Keep in mind that some business cards may have annual fees, so it’s helpful to review this information beforehand.
• Understand the qualifications necessary for approval. Depending on the business credit card, there may be certain eligibility requirements, like a personal guarantee and personal credit score thresholds, that impact approval.
• Look into special sign-up or welcome bonus offers. Certain business credit cards offer incentives to new cardholders. When researching card options, it’s helpful to understand the spending requirements to qualify for the offer.

If you don’t have a business credit score, business credit card issuers will likely check your personal credit scores. Each business credit card will indicate its recommended credit score ranges for qualification. But in general, the higher your scores, the more likely it is you’ll be approved for a business credit card and the better the terms you could receive.

Before applying, it's a good idea to open a business bank account. Having one can demonstrate your business’s legitimacy and help credit card issuers assess your financial stability.

To save time, gather everything you need for your business card application. Typically, this includes: 

• Contact information (business mailing address and phone number)
• Legal name of your business
• Your Social Security number (SSN) and legal name (if you’re a sole proprietor)
• How long your business has been in operation
• Your role in the business
• Federal tax ID
• Industry type (NAICS code)
• Legal structure (corporation, partnership, nonprofit, LLC or cooperative)
• Annual revenue
• Total monthly expenses
• List of beneficial owners or business controllers (for corporations and partnerships)

When you’re ready to apply, you can fill out an online application for a business credit card. It usually takes less than 10 minutes to complete. You may be asked to verify certain information or provide additional details as your application is reviewed.

Once you submit your application, it will be reviewed by the card issuer. You may be approved within a few minutes or a few days. Once approved, you’ll receive your business credit card by mail in about seven to 14 business days.

Here’s more information about applying for a business credit card.

A business credit card can be an important management tool that helps your business maintain ample cash flow, establish a business credit history, and take advantage of important perks and rewards. The best business credit card for your company depends on how you want to use that credit and what rewards will work best for your enterprise.
Ready to find a card that will evolve alongside your business needs? Compare Capital One Business credit cards today.