Apply For Business Credit Card With EIN: A Complete Guide

by Fasial Nadeem Feb 18, 2025

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Apply For Business Credit Card With EIN: A Complete Guide

Looking to grow your business? You might need a credit card. Good news: you can get one with just an Employer Identification Number (EIN). Our guide makes it easy, showing you every step.

Keep reading for smart tips.

Apply For Business Credit Card With EIN: A Complete Guide

Looking to grow your business? You might need a credit card. Good news: you can get one with just an Employer Identification Number (EIN). Our guide makes it easy, showing you every step.

Keep reading for smart tips.

Key Takeaways

• You can get a business credit card with just an Employer Identification Number (EIN).
• EINs help separate your personal and business finances, making tax time easier.
• There are many types of business credit cards, like corporate, prepaid, store, and fuel cards.
• Some business credit cards do not need a Social Security Number (SSN) for approval.
• Paying bills on time with your business credit card helps build a good credit history.

Understanding an EIN

An EIN is a unique number the IRS gives to businesses. It's like a Social Security number, but for your company.

Definition and Purpose

An EIN stands for Employer Identification Number. The IRS gives it out to identify businesses. Think of it like a Social Security number, but for your company. This helps in tax and banking matters.

EIN is the key that unlocks business credit lines with no personal guarantee.

Businesses use EINs to keep their money matters separate from the owner's personal finances. With an EIN, you can apply for business credit cards, loans, and more without using your social security number.

It makes things clear between personal and company money and helps build a business credit history .

How to Obtain an EIN

You need an EIN if you run a business with employees, or if it's a partnership or corporation. The IRS gives this number for free. Here's how you get one:

1. Go online to the IRS website .
2. Fill out the application form.
3. Provide your business details like name and address.
4. State the reason for applying, such as starting a new business or hiring employees.
5. Submit your application during IRS working hours.
6. Receive your EIN instantly after submitting.

This process makes sure your business is ready to operate in the eyes of the government and law. It's a crucial step for any LLC, partnership, or corporation needing to separate their personal and professional finances.

Benefits of Using an EIN for Business Credit Cards

Using an EIN for business credit cards means keeping personal and company money separate. It also makes getting card approval easier and helps build a firm's credit history.

Separation of Personal and Business Finances

Keeping personal and business finances apart is key. This way, you know what money belongs to your business. It makes tracking expenses easy too. You won't mix up your own shopping with company costs.

With separate accounts, filling out tax forms becomes simpler. You see exactly how much the business spent and earned. If auditors come knocking, clear records will show them everything they need to fast.

Separate your finances to make taxes a breeze.

Potentially Easier Approval Processes

Some business credit cards do not need a Social Security Number (SSN). This makes them easier to get. With an EIN, mid-sized businesses and larger companies often find approval quicker.

The process is simpler because it's based on the business's credit score, not the owner’s personal credit.

After looking at easier approvals, we move on to building a strong business credit history .

Building Business Credit History

Building a business credit history starts with using an EIN for financial moves. This way, businesses separate their finances from personal ones. With an EIN, they can get business credit cards and loans.

These actions show banks and credit bureaus like Dun & Bradstreet that the business is real and reliable. Over time, paying bills on time improves the business credit score.

Having a good business credit score opens doors to higher limits on credit lines and better loan terms. Companies with strong scores find it easier to rent space or buy equipment without personal guarantees.

They also might pay less when borrowing money because banks see them as lower risk. Each smart financial choice adds up, making the company's future brighter.

Types of Business Credit Cards Available with an EIN

With an EIN, the door opens to various business credit options. These range from company charge cards to cash cards for specific stores or gas stations.

Corporate Credit Cards

Corporate credit cards are special. They help companies handle money better. The Ramp Visa corporate card is a good choice. It has no annual fee, but needs at least $50,000 in the account.

For those who don't want to risk personal money, the Brex card does not need a personal promise to pay back what is borrowed.

These cards are for bigger businesses that spend a lot and need to track costs easily. They come with perks like travel rewards but focus on helping firms manage spending and build their credit history without mixing up personal and company funds.

Prepaid Business Cards

Prepaid business cards let you control your budget without a credit check. You load them with money before spending. This method helps keep business costs in check. You can use these cards for payments, invoice factoring, and managing expenses.

These cards work well for businesses that want to avoid debts or hard credit inquiries. Since they do not link directly to a checking account, there's less risk of overspending or financial trouble.

Examples include Visa Cards and Mastercards used by small businesses for purchasing supplies or paying bills online.

Store Credit Cards

Store credit cards like Best Buy’s corporate card and Amazon’s Secured Store Card help businesses manage costs. They offer cash back rewards on purchases, making it easier to save money.

With these cards, companies can track spending and get special deals.

Companies need good credit scores to qualify for most store credit cards. But some cards are secured, meaning a company can get them by paying a deposit. This helps even new businesses without much credit history start building one.

Using store credit cards wisely boosts your business's buying power and financial health.

Fuel Cards

Fuel cards are smart for businesses with more than 5 vehicles. They offer discounts and rewards for travel. With a card like the Shell Small Business Card, companies save money on gas each month.

These cards also help track spending on fuel, making it easier to manage expenses. It's clear that using a corporate gas card is a solid choice for any business needing to fuel multiple vehicles regularly.

How to Apply for a Business Credit Card with an EIN

Applying for a business charge card using your EIN starts with gathering all your company papers. Next, search for charge cards that let you use an EIN instead of an SSN.

Preparing Your Business Documentation

Gather all your business info first. You need your business name, how it's set up (like an LLC), and contact details. Also, have your size, earnings, and when you started ready. This step makes sure banks see you as a real business.

Next, list down what you spend money on and debts you owe. Banks use this to check if you can pay back the credit card debt.

Having all documents in order speeds up the application process.

Finding EIN-Only Business Credit Cards

To locate EIN-only business credit cards, initiate your search with Capital One, Chase, and American Express. These firms provide cards that bypass the necessity for a personal guarantee.

This signifies that you employ your EIN in place of your social security number when applying. Cards including Ramp, Brex, and BILL concentrate on businesses in pursuit of uncomplicated methods to regulate expenses without associating them with personal credit histories.

Search for secured business credit cards should you aspire to construct or enhance your organization's credit rating. These cards demand a deposit but facilitate the build of a reliable payment history with business credit bureaus like TransUnion and Equifax.

For rewards and cash back, examine options from Bank of America or World Mastercard that suit businesses expenditure on travel, office supplies, or fuel.

Application Process

Fill out the form using your business information. Check if you have enough money for cards that need a minimum balance. Look for cards made just for businesses with an EIN. This can make getting a card easier and help your business build its credit history.

Top EIN-Only Business Credit Cards

Looking for the best business credit cards you can get with just your EIN? We've got a list that features options perfect for earning cash-back rewards, those that don't ask for a personal promise to pay, and ones great for keeping costs low.

Secured Business Credit Cards

Secured business credit cards need a cash deposit to open. This deposit acts as security for the card issuer. For example, the Bank of America Business Advantage needs at least $1,000 to start.

Wells Fargo’s option lets owners put down between $500 and $25,000. These cards are good for businesses that want to build or fix their credit score.

A secured business credit card is like a stepping stone for your business's financial growth.

Using these cards wisely can boost a company's credit rating over time. Just make sure to stay within spending limits and pay bills on time. Secured cards often report to consumer credit bureaus, which helps with building a strong credit history.

No Personal Guarantee Required Cards

Moving from secured business credit cards, we find cards that don't need a personal guarantee. These cards offer unique benefits. With these, your personal assets are safe if your business can't pay the bill.

You won't have to worry about personal financial risk.

One example is the Ramp corporate card. It has no annual fee but asks for a $50,000 minimum balance. Also, there's the Brex card which doesn't check your credit and requires you to pay your balance daily.

These options help keep your business spending separate from your personal finances and build credit without risking personal loss.

Best Cards for Cash Back and Rewards

For cash back and rewards, the Ramp card gives cashback rewards and matches receipts automatically. The Stripe corporate card offers 1.5% cashback with no yearly fees. These cards help businesses save money on expenses.

Choosing these cards means businesses can earn more from their spending. For every purchase, they get a part of the money back or points they can use later. This helps companies reduce costs over time without extra effort.

Using Your Business Credit Card Wisely

Smartly managing your business credit card means keeping tabs on spending and making timely payments. Dig in for more insights.

Managing Expenses

To manage expenses, it's key to use the business credit card for company costs only. This keeps personal and work money separate. You have power over how much employees spend by setting limits on their cards.

For example, if someone has a job that involves travel, you can give them a card but set a daily limit for hotels or meals.

When watching your spending, keep track of all buys with the card. This makes it easier when you need to check your credit report or prepare for taxes. Using tools like online banking lets you see where every dollar goes—whether it's for office supplies or paying bills.

Plus, keeping an eye on spending helps avoid going over budget and facing high interest charges on unpaid balances.

Enhancing Creditworthiness

Paying your bills on time boosts your credit score. This shows you are reliable. Check your credit reports often. Spot errors and fix them to keep scores high. High scores make getting lines of credit easier in the future.

Use a secured business card if starting out. It needs a deposit but helps build credit safely. Always spend less than your limit and pay it back fast. These actions improve your ratings with agencies like FICO and consumer reporting companies, making you more credible for financial moves later on.

Avoiding Common Pitfalls

After talking about enhancing creditworthiness, it's clear that managing a business credit card requires careful planning. Keeping personal and business expenses separate ensures clarity in finances.

This separation avoids confusion during tax time and helps in monitoring spending efficiently.

Making sure cash flow can cover bills is crucial. If you spend more than what the business brings in, debt piles up fast. This situation could hurt your credit score and make lenders wary down the line.

So, always check cash flow before making big purchases with your business credit card.

Alternatives to Business Credit Cards

If a business credit card doesn't fit, other paths can help manage your money. Think about loans just for businesses or cash advances from sales.

EIN Only Business Loans

EIN only business loans offer money without needing a personal promise to pay it back. These are great for companies that make good money. You just need your EIN, which is like a social security number for your business, to apply.

This kind of loan looks at how well your company does, not your personal credit.

Businesses can get different types of these loans, such as lines of credit or lump sums. They help you keep your personal and business money separate. Also, they let you build up a credit history for your business.

This means in the future, getting more money could be easier.

Merchant Cash Advances

Merchant cash advances give businesses money upfront. In return, businesses pay back with a portion of their daily credit card sales. They're quick and don't need collateral like traditional loans do.

But they come with higher fees. This makes them costly compared to other options.

Businesses choose merchant cash advances because they can get funds fast. They don't have to wait long or go through tough checks that banks demand. Still, it's a trade-off with the high costs involved.

Next up, let's talk about crowdfunding as another way to support your business financially.

Crowdfunding

Moving from merchant cash advances, crowdfunding offers another way to get money. This method collects small amounts of money from many people. It works well for startups and new ventures.

With crowdfunding, you can raise funds without needing a loan or giving up parts of your business.

Sites like Kickstarter and Indiegogo let businesses share their ideas online. People then give money if they like the idea. Some projects offer gifts or products as thanks for support.

Crowdfunding helps to test if there is interest in a product before making more of it.

Conclusion

Getting a business credit card with an EIN makes life easier for owners. It helps keep money matters clean between personal and company accounts. With the right steps, you can find cards that match your needs.

From secured ones to those offering cash back, options exist for all types of businesses. Use these cards wisely to grow your business's financial health.

FAQs

1. What is an EIN and why do I need it to apply for a business credit card?

An EIN, or employer identification number, is like a social security number (SSN) for businesses. It's used by credit card companies and other financial institutions to check your business credit score before approving you for a line of credit.

2. Can I apply for a business credit card as a sole proprietor using my SSN instead of an EIN?

Yes, sole proprietors can use their SSNs when applying for business cards. However, using an EIN helps separate personal liability from the company's finances.

3. How does applying with an EIN affect my personal FICO Credit Scores?

Applying with an EIN allows the hard inquiries and potential default risks to be tied to your business rather than your personal FICO scores, protecting your individual taxpayer identification number.

4. Will applying for multiple cards result in multiple hard inquiries on my D-U-N-S Number?

Yes, each application typically results in a hard inquiry on your Data Universal Numbering System (D-U-N-S) record by consumer reporting agencies - similar to how individual applications impact FICO scores.

5. Are there alternatives if I don't want another hard inquiry on my D-U-N-S Number or FICO Score?

Secured credit cards or prepaid cards could be options without needing additional checks from reserve banks or securities bodies like Visa International Service Association; they require upfront deposits but often have flat-rate APRs.

6. Does having more than one type of financing option help my small business?

Absolutely! A mix of financing methods including small business loans and lines of credits diversifies risk while providing flexibility in managing cash flow... even gift cards can play their part!