Published: Nov 15 2021
Last updated: Sep 25 2023
Read time: minutes
No, you cannot get a business credit card without having a business in the USA.
Many credit card issuers will require proof of a registered business before approving your business credit card application.
Business credit cards are not available for individual use or personal expenses. They are designed to centralize your business transactions, improve your business credit, and provide capital to your business to aid growth, marketing, and other business ventures.
So, whether you carry out work on a formal or freelance basis, a business credit card can help you manage your expenses, even out your cash flow, and earn rewards on business expenses.
What qualifies as a business when it comes to credit cards?
If you own a registered business, you can qualify for a business credit card using that information.
Some credit card companies will also allow you to apply for a credit card as a sole proprietor or freelancer, if you’re self-employed, or if you have a side hustle that generates income, such as:
- Driving for ride-share apps
- Selling handmade goods at markets or fairs
- Pet sitting or dog walking
Your business must also qualify as an ‘acceptable' type of business; many credit card providers will not provide credit to ‘high-risk’ business types such as arms manufacturers, gambling merchants, or online pharmacies.
To qualify for some business credit cards, you may also need to provide a personal guarantee. This means that you will be financially responsible for any unpaid bills or abandoned balances on the business credit account.
How can I qualify for a business credit card?
To qualify for most business credit cards, your business must be an active, pre-existing entity that is classified as an LLC, INC, sole proprietorship, or other type of taxed entity.
You may qualify for a Capital on Tap Business Credit Card, issued by WebBank, if
- Your business is a corporation or LLC
- You are an active business that has been running for more than 6 months
- Your business has a minimum monthly revenue of $2,500
- Your business makes money from selling goods and/or providing services
Why get a business credit card instead of a personal credit card?
As a small business owner, you know the importance of managing your finances effectively. While personal and business credit cards both offer an easy way to access funds when you need them, there are several advantages to using a business credit card instead:
Higher credit limits
A business credit card allows you to unlock greater financial freedom for your business. With higher credit limits, you have the power to make larger purchases and investments, giving you the edge you need to take your business to the next level.
Exclusive perks and rewards
Business credit cards make spending rewarding. A business credit card allows you to enjoy a wide range of exclusive perks, from cashback rewards and travel benefits to expense management tools and fraud protection.
Clearer accounting
Separating your personal and business expenses will help you stay organized and stress-free when it’s time to tackle bookkeeping and taxes. Business credit card accounts often include accounting integrations, allowing you to auto-sync transactions to accounting software, saving you time and reducing stress come tax season.
Company cards
Many business credit cards allow you to issue employee credit cards. These cards can be set with individual spending limits and used for company expenses such as travel, office supplies, or client gifts.
This not only reduces your time spent dealing with expenses, but it also helps with budgeting and accounting. Instead of juggling personal expenses and company expenses on one statement, employee cards allow for clear categorization.
Frequently asked questions:
Can I apply for a business credit card if I don't own the business?
Generally speaking, you cannot apply for a business credit card if you do not own the business or are a majority shareholder in the business.
As such, if you do not have ownership you may not qualify for a business credit card. However, if you are an employee who has been authorized by the business to use a company credit card, you may be able to use the card or a supplementary card for business expenses.
Can I get a business credit card with no business revenue?
It may be difficult to get a business credit card with no business revenue. Most credit card issuers require businesses to have a certain level of income or revenue to qualify for a business credit card. This is because the creditworthiness of a business is typically assessed based on its revenue and financial stability.
However, some issuers may offer secured business credit cards, which require a cash deposit as collateral. In this case, the credit limit of the card is typically equal to the deposit amount, and the issuer may not require proof of income.
Some issuers may also allow sole proprietors to use their personal income to qualify for a business credit card.
Can you get a business credit card without an LLC?
Yes, you can get a business credit card without an LLC. Many credit card companies offer business credit cards to sole proprietors, partnerships, and other types of businesses that are not structured as LLCs.
Sole proprietors are not eligible for a Capital on Tap Business Credit Card.
Can you get a business credit card without an EIN?
Yes, you can technically get a business credit card without an Employee Identification Number (EIN). If you don’t have an EIN, you can apply using your social security number.
Ready for your own business credit card? Apply today.
This does not constitute financial advice. For a more comprehensive insight into your individual business credit circumstances, it's recommended to seek guidance from your financial advisor or accountant.
