How to Get a Business Credit Card for an LLC? (Super Easy)

Delina Chantel Yasmeh
Published by Delina Chantel Yasmeh | Author
Last updated: February 23, 2024
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Getting a business credit card for an LLC is the first step to establish its credit history. There are several charge accounts offered by financial institutions, that’s why it is essential to explore the available options to make an informed decision.

As a Mergers and Acquisitions specialist and a Master's Degree holder in tax law, I assisted several businesses and entrepreneurs on acquiring business credit cards for their companies.

After thorough research and collaboration with our team of lawyers, we'll share our insights on how to secure a credit card tailored for your LLC's specific needs.

Quick Summary:

  • To get a business credit card for an LLC, determine your eligibility, choose a card that meets your needs, initiate the application process, and submit all required documents. 
  • You will need to provide basic details about your LLC, including the business name, entity type, potential annual revenue, EIN and number of employees.
  • The average interest rate of a business credit card is 22.12% annually.
  • To separate business credit from personal finances, I inform clients to apply using their EIN instead of their SSN.


How to Apply for an LLC Business Credit Card?

A woman about to apply for an LLC business credit card

To apply for an LLC business credit card, pick the appropriate credit card you are eligible for, then apply by submitting all the requirements.

Step 1: Research Your Options

If you already have a business account, inquire about their interest rates on credit cards and use it as a basis. Request information from other banking institutions regarding interest rates, annual fees, rewards, and credit limits.

Compare and fully understand the terms and conditions of each before submitting an application for a suitable credit card with the bank that has the best offer.

Step 2: Determine Your Eligibility

Assess your available option and determine which credit card you have the most chance of qualifying for. Your personal and business credit history is the main criteria for this determination.

Additionally, having significant assets and substantial commercial income will increase your chances of qualifying for a better business credit limit.

To improve the chances of being approved for a business credit card, I ensure that I have a good credit score. Most business credit cards require a credit score of 670 or higher [1].

If you don't have the money management skills yet, using a debit card will ensure you don't overspend and rack up debt on a credit card. - T. Harv Eker, Businessman, motivational speaker, and author

Step 3: Choose a Card that Meets Your Needs

You should select a card that aligns with your specific requirements.

Take into account the interest rates and consider the credit limits provided by these cards, especially if you anticipate high-volume purchases.

Step 4: Initiate the Application Process

Once you have narrowed down your options, you can contact your preferred financial institution and begin the application process.

Step 5: Submit All Required Documents

My clients needed to provide basic information about the company, including their credit score and history. After filling up the application form, you can proceed with submitting all necessary documents.

The issuer evaluates the provided information to determine the business's eligibility for a business credit card.

What You Need to Apply?

You will need to provide the following information when applying for a business credit card:

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

Additionally, you will need to provide your personal credit rating and history.

If you are the sole employee of your business, you will apply as an individual business owner. In this case, your business credit will be linked to your SSN, and business cards will be reported on your personal credit report and score.

However, if you plan to hire employees, you can opt for a business credit card for small entities. It will be issued to your business EIN instead of your SSN, and the associated transactions will appear on your business credit report.

When applying for a business credit card as an LLC, I advise clients to seek assistance from a friend or family member who can act as a personal guarantor to complete the process.

Build Business Credit Using Your EIN

If your company is already an established entity, you can build business credit quickly by using your Employer Identification Number (EIN).

Applying for a credit card using an EIN maintains a clear distinction between your personal credit history and your business credit profile. This separation ensures that any unfavorable personal credit ratings do not impact your business credit scores.

Note that newly-formed entities are not eligible to use the EIN for credit card applications. Lenders will require a Social Security Number (SSN) instead.

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

An LLC owner holding a business credit card while working remotely on a train

There is no fast way to get business credit for an LLC. Individuals must work on maintaining a high rating and a good credit history to be approved, meaning you need to manage business expenses properly and efficiently.

Can You Get a Business Credit Card With No Revenue?

You can get a business credit card with no revenue as long as you are earning money from the work you do, and you report personal income information on the application.

In my experience, some issuers allow newly-formed entities to apply for a business credit if they can present a sales projection of their business.

Contact your local bank to ascertain the information. In most cases, they will approve when they're certain you can pay for business expenses with your finances.

Does an LLC Have a Credit Score?

An LLC owner holding a business credit card and a phone

An LLC has a credit score because it is considered a business entity. It reflects a business owner's creditworthiness and personal responsibility in repaying business debts.

Company owners can request their business credit scores from the reporting agency at any time.

Upon making their request, business owners 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 scores.

Related Articles:

When Do I Start Using My Business Credit Card?

You can start using your business credit card immediately after it has been approved and activated. It usually takes at least 7 to 10 business days to receive your card by mail.

FAQs

What’s the Highest Business Credit Score?

The highest business credit score varies 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 Credit?

You can build up your business credit without using your credit by applying for a company credit card and establishing a trade line. A trade line is essentially a record of your company's credit history with a certain vendor.

Can My LLC's Credit Card Usage Impact My Credit Score?

Your LLC’s credit card usage cannot impact your credit score if your personal and business finances are separate.

Applying for a Business Credit Card for your LLC

Business owners can apply for business credit cards if they own a registered business that meets specific requirements and their personal history aligns with the criteria set by credit card issuers.

It's especially when they already have an established business bank account and personal credit card.

Acquiring a separate business credit card offers numerous benefits, including the ability to maintain clear separation between business and personal finances.

You can seek an premium online legal service to ensure legal validity and help you with the process.


References:

  1. https://www.cnbc.com/select/what-is-a-good-credit-score/

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