Signing up for credit cards through some partner links gives us a commission. Terms and conditions apply to the offers on the page. Here is our full Advertising Policy. We've done research on requirements to get a small-business credit card. It is less intimidating than people think. You don't need a full-time business or six-figure revenue. It is possible to get a small-business credit card through a part-time side hustle or a freelance job. Most of the credit cards for travel are also small-business cards like Ink Business Preferred Credit Card that top business owners use. Earning bonuses on business cards is an excellent way to boost your point balance and get closer to your dream vacation. What is a small-business credit card? A business firm uses a business credit card for business expenses. In contrast to it, a personal credit card is used for personal use. Who can apply for a small-business credit card? Business owners and firms can apply for business credit cards. For small businesses, a business credit card is an efficient way to separate business and personal expenses. This is because bonuses are tailored to small-business expenses; it is an excellent alternative to a personal card. What counts as a small business? To qualify as a small business firm, your business must be a for-profit enterprise and be eligible even if your businesses haven’t made any profit. The work of an independent contractor also counts. It is easier than you think to earn points on a business card. How to qualify for a small-business credit card Here are some steps to consider if you’re considering applying for a small business credit card:
Benefits of small-business credit cards I have convinced my friends and colleagues to start using small-business credit cards for their businesses. If you don't do it, then it's like leaving money on the table. One of my friends owns a roofing company. Materials for new jobs costs about $1,000 to $6,000. He used to buy these materials from a supply distributor based on a 30-day term. Once the customer pays for the complete job, he would pay down his line of credit. Now he uses a small business credit card to pay for such materials in place of using distributor's payment terms and earns thousands of dollars. He also gets a business card welcome gift of free travel rewards from his 12 to 15 roofing jobs every month. He used his good credit score with the roofing distributor as a reference to get his card approved for a higher limit on a small-business credit card. Small-business credit card revenue and income requirements Be truthful while filling out small-business credit card applications. It's okay if you're starting your business and not earning thousands of dollars revenue in a year. If one has a business credit card, he/she can help to grow your operation. This is much important factor in the application. That's why don't lie while filling the application for a small-business credit card. If your company is a startup, and haven't earned any income yet, put that on the application. Banks want to grow your business, so you can also estimate anticipated income. The bank also gets benefits when you use your card; it's mutually rewarding. The bank's decision on your small-business credit card depends on your personal credit score. Banks look at your total income and credit score while evaluating your application. So if you're qualifying for a personal credit card, you can also get approval for the business credit card. Banks usually don't require your credit card to approve small-business cards. When you apply for a small-business credit card for the first time, you should include your business revenue with your personal income, as you'll be personally backing the credit for your business. This is a straightforward method used by most business credit card applications that ha separate sections for your annual business revenue and your gross yearly income. Other considerations when applying for small-business credit cards When you own a small business all by yourself, it's considered a sole proprietorship. You don't require any EIN (Employee Identification Number) to apply for a small-business credit card. You can apply through Social Security Number (SSN). Though it is not required, it helps maintain an account relationship with the bank, like other credit card or checking account, before applying. If you open a small-business checking account in the bank, it can help you keep your expenses separate. Even if you don't make any deposits for your business at the bank, you're still eligible to apply for a small-business credit card. The Bottom Line
If you have little or no revenue for your small business, but you want to apply for a small-business credit card, banks will consider your form based on your credit score and history. However, you should be truthful in the application. You'll be responsible for the charges on the card, and it will help you to get approval if you already have a banking relationship like a checking account or credit card. The best part of applying for a small-business credit card is that you'll get bonus miles and points to help you grow your travel reward balances, and there are also other benefits of this card. If you want to add a credit card to your wallet, check out our list of best credit cards for travel. In detail, we have mentioned the most used credit cards for personal use and business firms. A small-business credit card is one of them. These are mostly preferred by businesses to carry on their business transactions smoothly.
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