The CARD Act of 2009 created some rules that credit card issuers had to follow, but it also carved out some major exceptions for business credit cards.įor example, the CARD Act requires a minimum 21-day grace period to pay a bill before it is considered late. Business Credit Cards Aren’t Covered by the Same Rules as Personal Cards. Create an account to find opportunities you’re most likely to qualify for fast. Use Nav to instantly compare your best options based on your unique business data. You can use your Social Security number (SSN) instead.įinding funding doesn’t have to feel like an uphill climb. While business credit card applications will ask for your company’s Employer Identification Number (EIN), you won’t have one if you are operating as a sole proprietor. You Don’t Need an Employer Identification Number. You can qualify for a business credit card too! 2. You can use your Social Security number (SSN) instead.Īnd freelancers, rejoice. While business credit card applications will ask for your company’s Employer Identification Number (EIN), you might not have one if you are operating as a sole proprietor. Here are eight things that you need to know before you apply for a business credit card. There are also often welcome offers that waive the annual fee or interest rate for the first year. This will open up great financing options down the road.īusiness credit cards can offer perks like employee cards or rewards like cash back or gift cards, which offsets the interest you pay on purchases.
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However, they may qualify for a business credit card.īusiness credit cards can be a great way to build a credit payment history for your business, as long as you pay your balance on time (and in full when you can). Well, to start, your business might not need a $10,000+ business loan, but it might need a way to cover business expenses when cash flow is slow.Īnd new businesses and startups might not be eligible for other financing options because they haven’t been in business for long enough.
With so many business financing options out there, from small business loans to a line of credit, why consider a business credit card? Why Should You Get a Business Credit Card? A business credit card may report your activity to business credit bureaus, which might help you to establish your business credit scores. The potential to build business credit.Credit cards often give cardholders more protections on business travel and other purchases than debit cards, so it can be safer to spend money using a credit card. Business credit card accounts typically allow you to control how much your employees spend on their cards, which can help you to avoid overspending. The ability to set employee spend limits.Basically, they pay you back for using the card on eligible purchases. Many business credit card offers have fantastic rewards points or cash back rewards. Some business credit cards don’t charge cardholders interest for a specific number of months after account opening. A business credit card gives you the option to take advantage of opportunities you otherwise might not be able to afford. Some ways business credit cards can benefit your business include: Benefits of Getting a Business Credit CardĪ business credit card can provide a lot of positive benefits to your small business. Let’s look at a few important things to consider when looking for the right business card. Get matchedīusiness and personal credit cards may look similar, swipe the same, and may even offer similar terms and rewards as personal credit cards, but business credit cards have a few distinct differences that can trip up a new business owner looking for a credit card. Instantly see your top options for business loans and credit cards based on your business needs using Nav's MatchFactor.
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