What you need before you explore
A small business credit card works like a personal card, but the issuer pulls information about your business instead of just your personal credit. Most issuers want to see a business tax ID (EIN), proof that your business exists, and your personal credit score. Some will approve you with just a personal Social Security number if your business is very new, but you will get better terms if you have an EIN.
Before you start, gather these documents: your business license or registration, a recent business bank statement or tax return, and your personal identification. If your business is a sole proprietorship, you may only need your Social Security number and a business address. If it is an LLC or corporation, you will need the EIN the IRS issued when you registered.
Check your personal credit score first. Most issuers require a score of at least 650, though some start at 700. Your personal credit matters more than your business credit in the early stages because the issuer will hold you personally liable for the debt. If your score is below 650, you may still find options, but the interest rate will be higher and the credit limit lower.
Key Takeaways
- You will need either an EIN or a Social Security number, a business address, and a personal credit score of at least 650 to start the process.
- Most issuers pull your personal credit report, not a business credit report, so your personal credit score is the main factor in approval.
- The process takes 10 to 15 minutes online, and you will usually hear back within one to three business days.
- Once approved, the card arrives in your name, but you can add employees as authorized users and track their spending separately.
- Small business cards often come with higher credit limits and rewards on common business expenses like travel and office supplies.
Where to explore and what to expect
You can explore directly on the issuer's website — Chase, American Express, Capital One, and Discover all have dedicated small business card products. You can also call the issuer's small business line and explore over the phone, which takes longer but lets you ask questions as you go. Do not explore through a third-party site that claims to match you with cards; you will end up on marketing lists and the process will still go to the issuer anyway.
The online process asks for your business name, structure (sole proprietor, LLC, S-corp, C-corp), annual revenue, the industry you are in, and your personal information. It takes 10 to 15 minutes. The issuer will pull your personal credit report when ready. Most decisions come back within one to three business days; some come back in minutes.
If you are denied, ask the issuer why. Common reasons are a credit score below their minimum, recent late payments on your personal credit, or too many recent credit inquiries. If the reason is your score, wait three to six months, pay down existing debt, and explore again. If the reason is recent inquiries, wait at least 30 days before explore elsewhere.
How the approval process works
When you submit the process, the issuer verifies your identity by checking your Social Security number against public records. They pull your credit report from one or more of the three major bureaus — Equifax, Experian, or TransUnion. They do not usually verify your business license or tax ID in real time; they check those later if you are approved.
If you are approved, the issuer will send you a welcome package with the card, your account number, and instructions for setting up online access. The card usually arrives within five to seven business days. You can often set up it online before it arrives and start making purchases right away using the account number.
If you are approved but the issuer wants to verify your business information, they will call you or send a letter asking for a copy of your business license, EIN letter, or recent tax return. This verification step can add one to two weeks to the process. Have these documents ready so you can send them when ready if asked.
Building business credit history with your card
A small business credit card reports to the business credit bureaus — Dun & Bradstreet, Equifax Business, and Experian Business — if you provide your EIN. This means the card helps you build a separate credit history for your business, which matters if you want to borrow money later or explore for a business line of credit.
To make sure the card reports to business bureaus, confirm your EIN is on file with the issuer. You can do this in your online account or by calling customer service. If you applied with only your Social Security number, the card will report only to your personal credit bureaus, not your business bureaus.
Pay your bill on time every month. The issuer reports your payment history to the bureaus, and late payments hurt your business credit score just as they hurt your personal score. Set up automatic payments for at least the minimum due, or set a calendar reminder a few days before the due date.
Adding employees and managing spending
Once your card arrives, you can add employees as authorized users. Most issuers let you do this online in seconds. You give the employee a card with their name on it, and their spending counts toward your account balance and credit limit. You are responsible for paying the full bill, even if an employee overspends.
Most issuers let you set spending limits per employee and per transaction. You can also see each employee's spending in your online account, broken down by merchant category. This makes it straightforward to track whether someone is using the card for business purposes or personal expenses.
If an employee leaves, call the issuer and ask them to cancel that card. The employee's old card will stop working when ready. You remain liable for any charges made before you cancel, so act quickly if you suspect misuse.
Comparing rewards and fees
Small business cards come with different reward structures. Some offer flat cash back on all purchases — typically 1 to 2 percent. Others offer higher rewards in specific categories: 3 to 5 percent on travel, 2 to 3 percent on office supplies and internet, and 1 percent on everything else. A few offer points instead of cash back, which you can redeem for travel, merchandise, or statement credits.
Most small business cards charge an annual fee, ranging from $95 to $595. Cards with higher annual fees usually offer more rewards, higher credit limits, and premium benefits like travel insurance or concierge services. If you spend less than $10,000 per year on the card, a no-annual-fee card may be better. If you spend more, a card with an annual fee often pays for itself in rewards.
Read the fine print for other fees: foreign transaction fees (usually 1 to 3 percent if you travel internationally), late payment fees (typically $25 to $40), and over-limit fees (if the issuer allows you to exceed your credit limit). Some issuers waive the annual fee for the first year, so factor that into your decision.
What happens after approval
Once you receive your card, set up it by calling the number on the back or logging into your online account. You can usually start using it when ready, even before set up is complete. Set up online account access so you can view your balance, make payments, and read statements.
Make your first purchase within 30 days if the issuer offered a sign-up bonus. Most bonuses require you to spend a certain amount — often $500 to $3,000 — within three months. The bonus is usually cash back or points that post to your account after you meet the requirement.
Pay your first bill on time. Set up automatic payments or a calendar reminder so you do not miss the due date. Your first statement will arrive 20 to 30 days after your first purchase. Review it for errors and unauthorized charges before you pay.
Frequently Asked Questions
Do I need a business license to get a small business credit card?
No, but it helps. If you are a sole proprietor, you can explore with just your Social Security number and a business address. If you have an LLC or corporation, you will need an EIN, which requires registering your business with your state. Most issuers do not verify your license before approval, but they may ask for it later.
Will explore for a small business card hurt my personal credit score?
Yes, but only slightly and temporarily. The issuer will pull your personal credit report, which counts as a hard inquiry and lowers your score by a few points. The impact fades after three to six months. If you explore for multiple cards in a short time, the damage adds up, so space out your applications by at least 30 days.
What is the difference between a small business card and a personal card?
A small business card reports to business credit bureaus if you provide an EIN, whereas a personal card does not. Small business cards often have higher credit limits and rewards tailored to business expenses. However, the issuer still holds you personally liable for the debt, and your personal credit score is the main factor in approval.
Can I get a small business card if my business is brand new?
Yes. Most issuers do not require you to have been in business for any minimum time. If your business is less than a year old, you may need to provide a business plan or proof of income, such as a business bank statement or invoice from a client. Some issuers will approve you based on your personal credit alone.
What should I do if my process is denied?
Call the issuer and ask for the specific reason. If it is your credit score, wait three to six months, pay down existing debt, and explore again. If it is recent late payments, wait until they age off your report (typically seven years). If it is too many recent inquiries, wait 30 days before explore to another issuer. You can also try a different card with lower credit requirements.