How to Get Approved for Your First Small Business Credit Card. When you are starting up your business and getting your first small business credit card, it is a little bit tedious to do. It might be difficult for you to know the steps and processes you need to get approved for your first small business credit card.
Credit cards are a very essential tool for your small business. They basically help you save up on money. As a result of this, today we are going to be looking at how to get approved for your first small business credit card.
How to Get Approved for Your First Small Business Credit Card
If you are just starting up a new venture, then you know that it is important to get a debit card for that venture to help you save on unnecessary expenses. As a small business, every penny counts, so you have to be looking for ways to save money to put back into your business to build it. Making use of a credit card is one of the best ways to do so.
This article basically has everything you need to know in order to get approved for your first small business credit card. Therefore, if this is what you came for, then keep on reading as I take you through all the steps and processes to get your first small business card.
Who can Apply for a Small Business Credit Card?
Obviously, as a small business owner, you are liable to apply for a small business credit card from any of the credit card companies you want. But it does not stop there. It does not mean that it is only businesses that can apply for a small business credit card. Anybody that is making sales of any good or service can make a profit and apply for a small business card.
Getting a small business credit card is a very easy thing to do, and below are some of the examples of people that can apply for a small business credit card:
- People with Etsy shops
- If you say, “book on eBay.”
- You are an Uber driver in your spare time.
- Online or offline student tutoring
- You sell cookies or any other type of edible at a farmer’s market.
What does this mean? It means that as long as you are doing anything to make a profit, you are eligible to apply for a small business credit card.
Benefits of Business Credit Card
There are so many benefits to a small business credit card, all of which are listed below for you to see:
- A business credit card has a higher credit limit than ordinary credit cards.
- Getting a small business credit card helps you to steadily build your credit score.
- It gives you the ability to keep your business and personal expenses separate.
- Business credit cards give you the ability to earn rewards in different business categories.
- You have more purchasing power by having a separate business credit card for your business.
Requirements to Apply for a Small Business Credit Card
One does not just wake up in the morning and decide to go ahead and apply for a small business credit card. This is because there are certain requirements that you need to meet or have before you will be able to apply for a small business credit card. These requirements are listed below.
- Business name
- Business address
- How many years have you been in business?
- Your monthly expenses are estimated
- tax identification number
- Business Type
- Nature of the business.
- Your role in business
- A phone number for a business
- Employees’ number
How to Apply for a Small Business Credit Card
Below are the steps to apply for a small business credit card:
- The first thing you need to do is to simply carry out research on the particular card you want.
- After carrying out your assistance, select a particular card.
- Make sure your credit score and history are good for the particular card we selected.
- You will have all the information required of you to apply for the credit card.
- Head over to the website for the credit card and apply for the card.
After you have successfully submitted your credit card application, the only thing that is left to do is to simply wait and see if it will be granted.
Getting Approved for a Small Business Credit Card
It is important to note that the requirement to apply for a credit card is not the factor that determines your credit card application approval. The approval of your credit card is totally dependent on the below factors:
- Getting approved for your credit card is dependent on your personal credit history and score.
- You are probably going to need to sign a personal guarantee since you are a new or start-up small business.
- Do not lie on your application. It would be a big mistake, and you are certainly going to get caught, and your application will not be approved.
- Having a relationship with the bank will go a long way if you are a previous customer.
Does it mean that if the above-mentioned factors are not on your side, your credit card application will not be granted? Your application can still be granted as long as you have a solid foundation for your business.
How to Get Approved for Your First Small Business Credit Card FAQs
What credit score is needed for a business card?
If you are going to be applying for a business credit card, then you are definitely going to need a credit score of 700 or higher. This is the credit score that you will need so that you are not turned down by the credit card company. Although this is not the only factor that is considered in approving a credit card application,
How can I get credit to start my own business?
Getting ready to start your business is one of the things that most people need. That is why many businesses have not been able to get started. There are various ways you can get ready to start your business. You can look at two small business loans. You can also consider government grants. There are also different credit unions that you can simply apply to.
How long does it take to qualify for a business credit card?
It can take anywhere from a few minutes to as long as 10 business days to qualify for a business credit card. This is totally dependent on the bank’s policy. because some of them might require updated proof of revenue and other information to be verified before your credit card is approved.