A business credit card or business bank account can be a great way for an LLC to build its credit history. When applying for a business credit card, the business owner will need to provide some basic information about the company and their personal credit score and history.

Many different business credit cards are available, so it is important to do your research before applying. This article will discuss the basics of getting a business credit card for an LLC.

How to Apply for an LLC Business Credit Card?

The first step in getting a business credit card for an LLC is identifying which business credit card is available to you.

There are many different business credit cards on the market; most business credit cards come with a high credit limit, beneficial for business owners who make high volume purchases.

However, business credit cards typically charge much higher interest rates than personal credit cards. So it is crucial to find one that best suits your needs.

Once you have identified a few options, you can begin the application process.

When applying for a business credit card, the business owner will need to provide some basic information about the company and their personal credit score and history.

The business owner will also need to provide information about the company's annual revenue and the number of employees. The credit card issuer uses this information to determine if the business is eligible for a business credit card.

To improve your chances of being approved for a business credit card, it is important to have a good credit score. Most business credit cards require a credit score of 650 or higher.

Additionally, the business owner will need a clean personal credit history. If you have any late payments or collections accounts on your credit report, you may not be approved for a business credit card.

Steps to Get a Business Credit Card

  • Research different business credit cards and find one that best suits your needs.
  • Complete the business credit card application with all required information.
  • Submit the application, along with any supporting documents needed.
  • Wait for a decision from the credit card company.
  • If approved, start using the business credit card to build your credit history.
  • Keep track of your business credit card payments and avoid missing any.

It is important to keep in mind that many factors can influence whether or not you receive a business credit card for an LLC. For example, if the credit card issuer makes a hard inquiry on your personal credit report, this could negatively affect your chances of being approved.

To find out if you are likely to be approved, some business credit card companies will pre-approve you for a business credit card without making a hard inquiry on your personal credit report.

Suppose you receive an approval message for your business credit card application but are unable to complete the process due to not having a personal guarantee.

In that case, you might want to consider asking a friend or family member to help with the application and sign on as a personal guarantor.

Build Business Credit Using Your EIN

If you are not approved for a business credit card, there are other ways to build your business credit. One way is to use your EIN (employer identification number) instead of your personal social security number.

When applying for a business credit card, the business owner must provide their EIN. The credit card issuer uses the EIN to determine if the business is eligible for a business credit card.

Many small businesses do not have an EIN, but it is important to get one if you want to build your business credit. You can apply for an EIN online or by mail.

Once you have your EIN, you can start using it to apply for other types of credit, such as a business loan or line of credit.

Building your business credit is important for any small business. A business credit card can be a great way to start building your credit history. Be sure to do your research before applying for a business credit card, and make sure you meet the eligibility requirements.

What You Need to Apply?

When applying for a business credit card, you will need to provide the following information:

  • Company name
  • EIN
  • Company address
  • Type of business
  • Annual revenue
  • Number of employees

Additionally, you will need to provide your personal credit score and history. You will also need a clean personal credit history, with no late payments or collections accounts on your credit report.

What Is the Fastest Way to Get Business Credit for an LLC?

If you plan on starting a business and need a business credit card, you can easily apply for business cards as an LLC. As long as your business is registered with the state, it is eligible to apply for business cards.

The business credit card application process is also very similar, whether you apply for business cards as an individual or small business owner.

All business credit card applications require the same basic information, such as company name and business EIN.

As a business owner with an LLC, you will have two options when applying for business credit cards: individual business owners and small business owners.

If you plan to be the only employee of your business, you will apply as an individual business owner. This means that your business credit will be tied to your personal EIN, and business cards will appear on your personal credit report and credit score.

However, if you plan to hire employees for your business soon or already have employees, you can apply for a small business credit card.

This means that business credit cards will be issued to your business EIN, not your personal EIN, and business cards will appear on the business credit report instead of your personal report.

Can You Get a Business Credit Card With No Revenue?

Many business credit card applications ask for the issuer's annual business revenue, but some business cards do not limit business applicants to businesses with at least $1 million in yearly revenue.

For example, American Express has business cards that are available for any business owner who can legally be employed by their company and provide a valid EIN.

Most business credit cards require business owners to provide business revenue, but business credit card issuers often have different requirements. For example, business credit cards issued by Wells Fargo only require business owners to legally be employed by their business and provide a valid EIN.

In contrast, Chase business credit cards require that the business owner has at least $5 million in annual revenues or is more than one year old.

Does an LLC Have a Credit Score?

A credit score is a number that reflects a business owner's creditworthiness and personal responsibility in repaying business debts. Most business owners can request their business credit score from the business reporting agency.

If business owners want to see their business credit score, they can request it at any time from the business reporting agency.

Business owners with an LLC should expect this process to take about three business days once all of the business owner's personal information is verified.

When business owners receive their business credit scores, they will also receive their business credit reports, including business and personal credit information.

When business owners with LLCs request business credit scores from the business reporting agency, they should expect to see their business credit scores and personal credit scores.

Typically, business owners will be able to verify that their business and personal interests are separate by reviewing their business and personal credit reports and business and personal credit scores.

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When Do I Start Using My Business Credit Card?

Once you have been approved for a business credit card, you can begin using it immediately. However, business credit cards are usually only activated once business owners receive their business credit reports and business scores.

When business owners receive their business credit reports and business scores, they can then activate their business credit card online or over the phone with the issuer of the business card.

Every business owner's personal information will be included on their business credit card. Still, business owners can also choose to have their name and business address printed on the business credit card.

Business owners who wish to have their business names and business addresses printed on their business credit cards should request this option when they receive their business reports and scores from the business reporting agency.

FAQs

Can an LLC Get a Personal Credit Card?

Yes, an LLC can get a personal credit card. The credit card company will likely require the LLC to have a Tax ID number and be registered with the state to approve the application. The LLC owner will be personally liable for any charges incurred on the card.

What’s the Highest Business Credit Score?

There is no definitive answer to this question since business credit scores vary depending on the credit reporting agency that is used.

However, a business with a score of 800 or higher is generally considered to have an excellent credit rating.

How Do I Build Up My Business Credit Without Using My Personal Credit?

There are a few ways to do this. One way is to get a business credit card and use it for your business expenses. You can also get a business line of credit or a business loan.

Another way to build up your business credit is to establish trade lines. A trade line is essentially a record of your company's credit history with a certain vendor.

The more trade lines you have, the better your credit score will be. You can establish trade lines by doing business with vendors and suppliers who report your payments to the credit bureaus.

What Are Foreign Transaction Fees?

Banks assess a foreign transaction fee (sometimes called a currency conversion fee). For example, if you make a purchase in euros using your US-based debit card, your bank may charge a foreign transaction fee for the conversion.

Conclusion

In short, business owners can apply for business credit cards as long as they own a registered business that meets certain requirements and their personal history is suitable for business credit card issuers.

Having a separate business credit card has a lot of advantages. It will also help you keep your business and personal finances and your personal and business spending separate.

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