How To Qualify for a Small Business Credit Card

Woman With Laptop Using Credit Card
Feb 02 2022

Written by: Capital on Tap USA

As the owner of a growing small business, you've likely experienced times when money is tight. Maybe you obtained or began using a personal credit card to get you through the tough times. But did you know that most small businesses can qualify for a small business credit card?

Small business credit cards offer several advantages over personal credit cards, such as: 

  • Building your business credit score
  • Earning higher credit limits 
  • Sign up bonuses 
  • Detailed transaction tracking 
  • Bookkeeping tax season 

Applying for small business credit cards is pretty much the same as the application process for personal credit cards, with only minor differences. And there are ways you can improve your chances for approval. 

Is your business eligible for a credit card? 

Fortunately, there's no requirement to have employees or a corporate business structure to qualify for most small business credit cards. Freelancers, independent contractors and gig workers (such as ridesharing or running a shared space like Airbnb), and home-based businesses are eligible for small business credit cards.Limited liability corporations (LLCs) and other types of businesses can qualify, of course, but there’s no hard requirement. Though it is important to remember some credit cards do have qualification and structure requirements, whether you run your own business or you simply earn extra money from a freelancing position, you can qualify for a small business credit card and obtain its benefits.

How's your personal credit?

Even though personal and business credit histories are separate, your personal credit score still matters when attempting to qualify for a small business credit card. If the business cannot afford your monthly payments, in some cases you're responsible to still make these payments from your own personal bank account. Even if your business doesn't succeed in the long run, you’re still required to make these payments.Get an annual copy of your credit history from one (or all) of the three main bureaus. There are also numerous apps in the marketplace that let you track your credit score. Qualifying for a business credit card depends on your personal credit score, and the better your personal credit history, the better your options.

Which credit score do I need for approval? 

Typically, a score of 690 or higher qualifies you for some of the better business credit cards. If your score isn't quite there yet, take some time to raise your score by keeping your overall credit utilization low and maintaining monthly payments on any open accounts you currently have.

What perks matter to you as a business owner?

Just like personal credit cards offer a variety of perks and bonuses, business credit cards offer the same – and sometimes better – rewards. Some of the perks you should consider include:

0% intro APR. This no-interest option is perfect, especially if your business needs to make a big purchase.

Cash back. If you'll be making plenty of purchases, maybe a business credit card with cash back is right for you. Each card differs a little in how cash back is applied. For instance, some business credit cards offer the same percentage cash back for every purchase, regardless of what's purchased. Other business credit cards offer a range of cash back amounts for different purchases such as fuel, dining or office supplies. You'll also find varying interest rates, cash back bonuses, and annual fees.

Travel benefits. In addition to cash back rewards, there are also business credit cards that let you earn points you can redeem for the purpose you need most. Some business owners, for example, prefer travel. A card that earns points that can be redeemed for travel is a welcomed perk in this case.

Get your info ready to apply 

Depending on the business credit card you decide to apply for, you might be asked for some personal info, such as your name and birthdate, SSN, address of residence, email address, telephone number, yearly income, and monthly rental or mortgage payments.

You'll also need info relevant to your business, such as your DBA name, business structure, industry, business address, telephone number, yearly revenue, employees (if any), how long you've been in business, how much your expenses are monthly, and your EIN or SSN.

The Capital on Tap business credit cards:

For card applications, you'll need:

  • Your business details
  • Your repayment choice
  • Personal details

Capital on Tap requires businesses to have 6 months of operating history, and be legally registered as an LLC or Corporation.

Applications take two minutes or less, and you'll receive a response within 48 hours. Best of all, applying won't hurt your credit and you may qualify for up to a $50,000 credit line. Plus, get 1.5% cash back on card purchases.

Ready for your own business credit card? Apply now. 

© Copyright 2022. Capital on Tap Business credit cards are issued by WebBank, Member
FDIC. © 2021 New Wave Card LP dba Capital on Tap
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