How do you apply for business credit cards?

apply for business credit cardsThere are multiple ways of applying for business credit cards. Business owners can find online applications from reputable financial lenders or seek credit cards from their banking institutions or trade groups. While the stagnating economy is making it difficult to find easy lines of credit for businesses, there are attractive options available that will help your company grow.

Use the FREE credit card finder to choose from a bunch of credit cards that will help your conduct your business with minimal interruptions!

According to the 2009 Small Business Credit Card Survey, almost 60% of small businesses have used credit cards to meet their capital needs in the last 12 months while 57% of all small businesses accepted credit card payments. With a majority of businesses using credit cards for their transactions, it is important that you research all your options to get the best terms and conditions.

Information You Need to Provide for a Business Credit Card

Unlike a personal credit card, a business credit card application requires very specific information and has a much more complex application process.

The first stage of application requires basic contact information about the business. This includes the following:

  • Legal name of the business
  • Name of business credit card owner
  • Doing business as (DBA) name if the business is being run under a different name
  • Business address
  • Business phone number

This is followed by information about the company such as:

  • Type of industry
  • The structure of the company (corporation, partnership, sole proprietorship)
  • Annual business transactions and revenue
  • Federal tax ID number
  • Company size
  • Credit limit required by the company

All this information is then collated with your business credit score to determine approval, lines of credit, credit card APR, among others.

Business Credit Scores

A business credit score allows lenders to make decisions such as how much credit can be extended to any business, the interest rate that will be charged as well as other terms and conditions that may be applied. This is an important number for all businesses and should be built with care.

According to the U.S. Small Business Administration, business credit rating is not the same as personal credit scores. While both scores are used to judge the ability to repay debt, they are calculated differently.

A business credit score is calculated on a 0-100 scale, with anything above 75 points being considered highly creditworthy.

These scores are based on trade credits, which are issued when one business extends credit to another. So you must make sure that your vendors are regularly reporting your business transactions to the business rating agencies. It is very important to remember that businesses are not legally required to report all trade credits.

The following business credit bureaus produce business credit reports based on trade credits:

  • National Association of Credit Management Report
  • Equifax Business
  • Experian Business
  • Dun & Bradstreet

applying for a business credit cardsChoosing a Business Credit Card

There are many types of business credit cards available in the market today. But the best credit card options for business owners should have low interest rates, maximum rewards points and cash back options.

For instance, if the business employees travel frequently for business purposes, it makes sound financial sense to have a travel rewards card, which will accrue travel points that can be used for upgrades and to buy airline tickets.

Cash back credit cards are a great resource too since the business makes back a certain percentage on every dollar spent on the business. But be aware that the percentage is usually small and applies to specific purchases.

Getting the Ideal Credit Card for Your Business

In spite of tighter lending standards and slightly complicated application procedures, you will find multiple options for business credit cards that will help you grow your company by making it easy to conduct your business transactions. But like every prudent decision you make about your business, make sure you read all the fine print.

The FREE credit card chaser tool is a stellar resource that will help you choose from a range of credit cards and set you on the path of business success!


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Disclaimer: This content is not provided or commissioned by American Express, Visa, MasterCard, Discover, or any other credit card company or issuer. The opinions expressed here are the author's alone, not those of any credit card company or issuer, and have not been reviewed, approved or otherwise endorsed by any credit card company or issuer. Credit Card Chaser may be compensated through various affiliate programs with advertisers. As always, Credit Card Chaser is an independent website commmitted to helping people research credit card offers and find the best credit card!