There are several steps to follow when applying for a business credit card. For most small corporations, a business credit card can streamline finances. More so, these cards assist companies in building credit for their organization. Of course, if your business credit is bad, consider using a credit repair service. As a business owner, there are many requirements and necessities to qualify for a business credit card. Follow these steps to apply for a business credit card.
Check Your Personal Credit
First, you need to check your personal credit before applying for a business credit card. If your business can’t afford to pay off the acquired balance, you will need to pay through your own account. For example, if your business has an off month and doesn’t have the funds. You would then be responsible to pay off the balance with your own money. Therefore, credit providers require your credit reports and credit scores. Access your credit reports annually from the 3 major credit bureaus including Equifax, Experian and TransUnion. Certainly, check your personal credit before applying for a business credit card.
Choose A Card
Secondly, choose a card provider that will support your business needs. There are several card options available. Review your business expenses to find what categories you spend most in. As a result, you can find a card option that provides rewards for buying in certain categories. For example, if you own a startup, you can find a provider that offers cheap capital with extended 0% introductory periods. Or, if you run a more established company with travel needs, you can get a card that accumulates reward miles. More so, if your business is run internationally, you may want to consider international credit cards. Of course, remember to check for fees and interest rates that will work for your business finances. Surely, choose a card provider that fits your business requirements.
Collect The Correct Documents
Next, collect the correct documents for your application. There are various documents you need, especially relating to your business. Credit providers require your business name, address and phone number. Additionally, they need your tax identification number, business and industry type along with your monthly/annual expense. Moreover, submit your current and projected revenue, a personal guarantee to cover debt and your social security number. Then, attach all these documents to your application to qualify for a business card. Definitely ensure you have the correct data needed to apply for a business credit card.
Submit Your Application
Now, you should submit your application to get a business credit card. First, review your application and confirm everything is correct. Next, read the terms and conditions. Then, accept the terms and submit. Depending on the chosen credit card provider, it could be approved instantly. Or, you may have to wait for your bank or provider to approve the application manually. This could take a couple of days or even a couple of weeks. However, you can check the approval status online or through the phone. Of course, submit your application to be approved for a business credit card.
Activate Your Card
Finally, if your business is approved, your provider will send you a card and you’ll need to activate it. Once you activate it, you can start using it responsibly. The card can be used to manage business expenses, improve business credit and fund business operations. Of course, there will be a credit limit. Typically, the limit is based on your credit score and business income. Regardless, ensure you don’t exceed your limit and that you pay off your balance in a timely manner. Moreover, by paying your balance on time and in full, you can put your business in the best position for future financing options. Certainly, once you receive your company card, activate it and use it responsibly.
These are the steps you should follow to apply for a business credit card. First, check your personal credit to confirm you can pay off acquired balances if your business can’t. Secondly, choose a card provider that will fit your business needs, such as a travel credit card that provides travel rewards. Next, collect the correct documents needed for you application such as an EIN, monthly/annual expenses and business information. Then, with all the correct information, you need to submit your application and see if you are approved for a business credit card. Finally, activate your card and use it to manage expenses, fund operations and improve credit. Follow these steps when applying for a business credit card.