Skip to content

How Do You Apply For A Business Credit Card?

As much as they would hate to admit it most business owners need to take out a business credit card. It will help them meet the ongoing needs of the business and pay for any urgent needs that arise. At first glance applying for a business card may seem intimidating but it really does not need to be if you plan ahead and view the procedure as a step by step process.

First eliminate all thoughts of having to fill out a bevy of complicated forms from your mind. The application is quite simple, much like those for consumer credit cards. You also won’t need to worry about audits and deep probes into your business activities. Be prepared however to provide things like the nature of your business, business name, address, phone, financials, tax ID and a list of people who you might want to have extra cards assigned to.

Below is a step by step guideline that once followed will make it that much easier to apply for and get approved for your business credit card.

Get A Copy Of Your Business Credit Report

Have you taken some time to establish your business credit? If not then you should try to do so to increase your chances of getting approved for the credit cards. It will also ensure that you receive the best interest rates if your business has a good credit rating.

Once you have allowed your business some time to establish credit you should request a copy of your report to check for any negative information. Have any suppliers reported defaults in your payments to them? Do you have any loans outstanding? If there are negative elements on the report you should get them fixed since credit card providers will look for and expect a history of on time payments before they consider extending credit to you.

Compare Credit Card Programs And Choose The Right One For You

What sort of benefits do you need from your business credit card? What type of business credit card will you need? Do you prefer a card with no annual fees or low interest rates? Do you want to get a general business card or a rewards type of card? Make a list of the things that are important to you and begin comparing various providers to find a few that meet those needs. Make sure that you also compare the terms and conditions of each program before you apply so that you are not completely surprised by program fees and changes after you begin using the card.

Get All The Required Information In One Place

After you are satisfied that you have chosen the most appropriate provider your next step will be to gather all the required information in one place. You will need to have the business name, business phone number, business address and federal tax identification number and/or social security number. You will also need to have a written summary of the nature of your business and financial statements for the past year or for the existence of your business if you are in business for less than one year. Your estimated yearly revenues, number of employees and names of any employees that you will like to have cards assigned to may also be required.

Submit Your Application

Now that you have all your information gathered your next step would be to submit your application. You can do this online which seems to be the preferred method nowadays since is it fast and free or you can do it via fax, phone or by mailing it in. Ensure that the information provided is as accurate as possible and submit the application for review.

Wait For Notification Of Your Application Status

Once the application is submitted the credit card issuer will evaluate the information that you provided and review your credit to decide if you are eligible for a business credit card. They will also determine things like your credit limit and the interest rates that you will be subjected to if they decide to approve your application.

If you do not hear from them for a while you can call in to follow up on the status and ask them if they need any further information from you.

Once you are given the card all you need to do is manage the card wisely and put it to good use to ensure the success of your small business.