Best Practice: Getting Approved for Business Credit Cards

Business credit cards provide a host of benefits for businesses of all types and sizes. Getting approved for them is generally not as straightforward as personal cards, so in this article I’ll discuss how you can maximize your odds of approval.

GETTING APPROVED

Contrary to popular belief, large amounts of revenue are generally not required. Many applications are approved for young businesses without much, or any revenue. Issuers know that businesses need to spend money to grow, and have limited revenue at the beginning.

Having a preexisting relationship with the issuer helps, but is not required. A preexisting relationship can be any account you have with that issuer. For example, other credit cards, even personal ones, or any type of bank account.

An employer identification number (EIN) is not required for Sole Proprietorships. If your business does not have an EIN, you can use your social security number instead. In this instance, the issuer will use your personal credit profile when reviewing your application.

Business credit cards from American Express and Chase, including AMEX platinum
My business credit cards. Spanning $0 annual fee entry level cards, and premium cards.

WHY YOU SHOULD CONSIDER BUSINESS CREDIT CARDS

Naturally, business credit cards offer specific perks that are designed for businesses. Examples are high spend multipliers on business categories, the option to add employee cards, and the ability to easily separate business expenses from personal expenses.

While applying for a business credit card will sometimes use your personal credit report, the account itself usually does not sit on your personal report. The advantage here is that if you need to cancel the card, it will have no impact on your personal credit score.

WHY CREDIT CARDS ARE BETTER THAN DEBIT CARDS

Business credit cards have multiple advantages over debit cards. Examples include purchase protection, increased rewards, and expense tracking tools. With many business cards having no annual fee, most people will find a business credit card to be more rewarding.

LARGE WELCOME BONUSES

Business credit cards often have large welcome offers. There are many offers that can get you $1,000+ in cash back or travel credits. While these big offers require a lot of spend, there are plenty of welcome offers that require less spend and still have significant bonuses.

There are bonuses available for businesses of all spend profiles. One simply needs to do a bit of research to find the cards that suit them best.

United Polaris business class seat paid for with points from business credit card
Free or heavily discounted travel is a realistic perk with business credit cards

CHASE 5/24 RULE CONSIDERATIONS

A notable benefit of business cards is that the majority of them do not count towards Chase’s 5/24 rule. The 5/24 rule states that you cannot be approved for a Chase card if you’ve received 5 or more credit cards within the last 24 months from any issuer.

WHAT QUALIFIES AS A BUSINESS?

Most ventures that generate revenue classify as a business. Even without documentation, enterprises such as photography or moving services can classify as Sole Proprietorships.

Many states do not require documents to be filed for Sole Props. This means that applying for a business credit card is as simple as filling out the application.

FINAL THOUGHTS

Business credit cards provide significant value and are easier to get than most people think. Many business owners will find that a small amount of research on available cards will be well worth their time.