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5 Ways To Help You Qualify For A Small Business Credit Card

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Published by GreenSprout Experts | 1/12/23

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A small business credit card is a great way to keep your business purchases separate from your personal purchases. Not only does this help you keep a clear financial record, but the rewards associated with small business credit cards are usually quite attractive for small business owners.

Keep in mind that to apply for a small business credit card you must be the owner of the business, and it must be a "for-profit" business. Independent contractors and freelancers might also be able to qualify, so be sure to check the qualifications of the specific card you want to apply for.

Here are some helpful tips to give you the best chance of qualifying for your card:

Know your credit score:

Generally speaking, most small business card lenders want to see a score of 670 or higher. That does not mean you cannot get approved with a lower score, but you'll end up with higher rates or fewer rewards.

Have all your details prepared:

Most of the information needed during the application process is the same as for any other credit card application, such as your name and income. In addition to these standard items, you will need to provide further details, such as your business name (which is simply your own name if you are an independent contractor or freelancer), business address, business category, Social Security or EIN, years of operation, annual revenue, and number of employees.

Do not apply for too many cards at once:

Applying for too many different cards at once can hurt your chance of approval, so you should devaluate all your options carefully and only select a few cards that best suit your situation.

Be ready to sign a personal guarantee:

Frequently, lenders will require that you sign a personal guarantee that you will repay any debt on the business card if the business were to fail or shut down.

You current bank may be your best option:

If you have a good relationship with your current bank, it will give you a better chance of qualifying for your small business card because they already have access to many of your financial details. Use this relationship to your advantage, and explore what small business credit offerings your current bank has available.

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