Business credit cards

Applying for a U.S. bank business credit card is quick and easy.  In addition to questions about yourself such as your name, address, date of birth, Social Security number/ITIN and personal income, you’ll be asked questions about your business. It should only take a few minutes to complete your application, but please make sure you have the following business information available before you start.

• Business structure (examples; Sole Proprietorship, Corporation, Partnership, etc.)
• Employer Identification Number (EIN)
• Legal business name
• Country business was formed in
• Year business started
• Business physical mailing address
• Business gross annual revenue
• Industry type (you’ll select from a key-word search list)
• Co-owners – Also known as beneficial owners, these are individuals other than potentially yourself who have at least 25% controlling and/or financial interest in the business. We use this information to verify their identity, but it will not affect their credit.

Name
Address
Date of Birth
Social Security Number/ITIN

• Employee cards – You may be given the option on your application to request cards for additional employees by providing the following information for each.   We use this information to verify their identity, but it will not affect their credit.  You can also easily add or remove employee cards later if you are approved for a business card.

Name
Address
Date of Birth
Social Security Number/ITIN

• Anticipated monthly spend on the card

A line of credit designated for your business will streamline your budget and expenses with a single funding source. Companies often need more capital once they expand, and building credit is essential to get qualified for this type of funding.

Business credit cards are a long-term play to help make your business more accessible and streamlined. For example, if you have growing inventory costs, machinery needing repair or replacement or an international business trip, the higher limit on your business credit card can be a lifeline.

A business credit card is different from a personal credit card. It has various functions and features designed for business purchasing, not consumer purchases. Business credit cards generally have higher limits and specific rewards that may not apply to a personal credit card. Phone bills, office supplies and gas station purchases are common categories for which business credit cards offer spending rewards.

A business credit card has the potential to affect your personal credit. When you apply for a business credit card, a hard inquiry will appear on your credit report and could temporarily drop your score by a few points. Your card activity is reported to the credit bureaus when you make purchases. While some only report business credit card activity, other credit bureaus are notified such as Experian, TransUnion and Equifax—meaning your business credit behavior can impact your personal credit.

Your personal credit score is essential when applying for business credit. Credit card issuers estimate your business’s creditworthiness. They collect detailed information about your business and run a personal credit check for business card applications. Your credit score is one of the most critical factors. Many small business owners with personal credit scores of 700 and above will easily qualify. 

The top business credit cards often come with additional perks and rewards. Credit cards fit the categories where businesses spend most, like office supplies, gas, dining and travel. Rewards can come in cashback, travel miles and even a spend management platform that maximizes value from company spending while decreasing costs and mitigating risk.

As a small business, you have regular expenses for your daily operations and may benefit from you or your employees making necessary purchases for your business. Consider everyday purchases like office supplies, advertising, website design, gas, utilities, repairs and janitorial services.

Large purchases can further operations and growth. Instead of applying for a loan, business credit cards are a favorable alternative because they offer a low or no-interest introductory rate. That means you can make a large purchase and pay it off before accruing interest. Let’s say you buy new office furniture with your business credit card. You can earn rewards on an eligible purchase and pay (down or off) the balance during the introductory rate period. Our business credit cards help you spend money and receive perks. Accumulate points, cash back or other bonuses that could boost your business.

When most small businesses are getting started, they often use a personal credit card. Over time using personal finances for business expenses can become problematic for your personal and business credit score. Also, when you separate personal expenses from business purchases, you can keep better records for the tax season. According to the Internal Revenue Service, if you have made personal and business purchases on your card, you can only deduct the interest from the business expenses.

The simple answer is yes, but only if the interest accrued came from purchases that are considered business expenses. You can deduct the interest from your business credit card if they are “ordinary and necessary” (as defined by the Internal Revenue Service) to operate your business. According to the IRS, you can only deduct the interest from company expenses if you have made personal and business purchases on your card.