How to Get A Business Credit Card
Every small business owner wants to know how to get a business credit card to afford every financial concern. It’s fast and easy to get, which gives business owners something to rely on when things get tough financially.
Based on a survey, 46% of 500 small business owners with a total sales or annual revenue below $1 million use business cards. The everyday expenses of these small businesses that use them are:
- business-related travel
- equipment and product costs
- gas for business vehicles
- office supplies
- phone and internet charges
And a whole lot more.
Every time a business needs to spend on this stuff, it’s more advantageous to use a business credit card. Most of these cards have low interest rates, significant rewards, and perks packages. It can have a greater return in the long run once the points earned get redeemed. Thus, not only small business owners can benefit from them but also freelancers and solo entrepreneurs.
Steps on How to Get A Business Credit Card
You need to follow only four steps to know how to get a business credit card.
1. Know your business
2. Check your credit
3. Review all your business credit card options
4. Provide your personal and business information
1. Know your business
You must understand the type of business you have to know how to get a business credit card. It’s not important if you don’t have an LLC or an S Corporation business structure yet, you can still apply. Aside from small business owners, freelancers, self-employed individuals, and sole proprietors can also apply as long as they have profitable activities or gigs.
2. Check your credit
The next step on how to get a business credit card is to know your credit history. If you still have existing debts, your approval odds will fall since it reflects you can’t manage to pay properly.
You are responsible for paying the business card debt if the business goes on a rough patch. Or can’t sustain itself anymore altogether. To qualify, make sure you have a 690 FICO score or higher. It’s an advantage if you have a good credit rating to get approval easily.
3. Review all your business credit card options
Consider the benefits and rewards will choose for your business’s needs. If you need to spend more money on a large purchase regularly, you can consider choosing one with a 0% introductory APR on every new purchase you will make.
If you’re after to earn more cashback, you have a lot options to choose from among the different banks. For frequent business-related travels, go for a card that offers travel benefits so you can maximize its usage.
As long as you know the essential things the business needs, it won’t be hard to understand how to get a business credit card that’s right for you.
4. Provide your personal and business information
As soon as you’re ready to apply, you may now fill out the form and supply the following information:
- Personal information: It includes your name, birthdate, home address, contact details like email and phone number, Social Security number, annual income, and monthly rent or mortgages if applicable.
- Business information: It includes the business name, legal structure, type of industry, contact details such as an address, phone number, email, annual revenue, date of business establishment, number of employees (if you have), employer’s identification number, and estimated monthly expense.
Right after you submit your application, wait for a response. It usually takes up to 30 days to process. Some may take only a week, depending on your application or the company.
Benefits of Owning a Business Credit Card
The sole purpose of applying for a business credit card and owning one is to help operate the business. After learning how to get a business credit card, here are the benefits you can receive:
Build Credit
New or small businesses can get higher approval odds if they have already established credit history. That’s why it’s beneficial for small companies to get one, use it regularly, and pay it on time. In this way, they can start to build a credit rating and grow it over time. It’s a great start, especially for those planning to get long-term loans in the future.
Sign-up bonus or Rewards
Every time you apply for a credit card, you can receive a sign-up or welcome bonus. But it depends on which card or the bank you choose to apply at. For small business owners, freelancers, and entrepreneurs, rewards like this help the business operate well.
Redeem the Rewards
The rewards you receive with every purchase can help you use them on other expenses needed for the business. You can use the points at hotels, gas stations, restaurants, airlines, cell phone providers, and other establishments.
Tax Deductions
It’s possible to deduct the expenses you purchase using your business credit card from your tax. However, it’s better to seek a tax expert or an accountant on this matter so they can guide you appropriately.
Secure the Business Financially
Having a business card can help you secure the business financially. Business credit cards are the best solution to cover some operational expenses. You can also use it if the business encounters some emergencies or difficulties. With all these benefits, you can see how these credit cards can help grow your business in the future.
Get A Higher Chance of Business Credit Card Approval
Now that you know how to get a business credit card, you are probably planning to get one now. As mentioned, your credit score plays a big part in the approval or denial for your application. If you need help fixing your credit score, you can contact 007 Credit Agent. We will help you in any way we can to get you approved for a business credit card. With healthy credit, you can grow your business successfully.
