Fundamentally, you apply for a business credit card the same way you do a personal credit card. There are a few things you will need to ensure that it is really your business that gets the credit and bears the responsibility for the debt, however. Even if it weren't for the positive credit rating incentive for good payments building your business fundability, it would still be important to keep your business and your personal credit cards separate.
What Do I Need for a Business Credit Card Application?
You will have to be able to list your business name, address and phone number, and it is better if they are separate from your personal residence. If you work from home and can't separate the addresses, at least have a dedicated phone number set up for your business. Make sure you have all of the appropriate licensing, and your EIN number from the Internal Revenue Service ready to prove your business' existence.
Another important number to have is your DUNS number. Like the EIN from the Internal Revenue Service, a DUNS number can be obtained online from Dun & Bradstreet. The reason this is important is it signals the reporting department to issue your credit report to Dun & Bradstreet, one of the premiere business credit reporting agencies.
You can find out all about Dun & Bradstreet, as well as the other major business credit reporting agencies at http://www.businessfundbility.com. Make sure you understand all there is to know about improving your business fundability to strengthen the credit worthiness of your company.
Most companies that offer business credit cards have easy to fill out forms online. There are some things to look for to make sure you are getting the best credit card for your business:
- Low interest rates for business credit cards you will use for large purchases that you can't pay in full each month.
- Travel incentives such as frequent flyer miles, cash back on gasoline purchases or hotel and car rental benefits if your business takes you on the road a lot.
Why a Credit Card and Not a Business Loan?
That's a very good question. In many cases if you are going to be making big purchases a business loan provides a more stable payment platform, lower interest rates and fewer penalty fees than a credit card. However, if you haven't built your business credit score to the point where a lender will consider you a good candidate for a loan, apply for a business credit card and can get you the cash you need while helping you establish your business fundability.
Business Credit Cards