Are you a small business owner? Opening a credit card for your small business is the best way to keep your business and personal expenses separate. Moreover, it provides you with an easy way of tracking what your business spends. If you earn income for selling products and services, you are a small business owner.
You must be for-profit to qualify as a small business owner. When filling out a credit card application for your small business, you must tell the truth no matter what. It is better to be truthful and be declined than to tell lies and have to go through bank financial reviews. If your startup has not earned any money yet, you should put this information in the application.
When starting out, your credit application will be based on personal credit. When applying for your first small business credit card, you need to include your personal income as well as your business revenue. For instance, if your business brings in 3,000 dollars per year and you make 60,000 dollars per year at your job, you should list your personal income as 63,000 dollars.
Here are some things that you should do before applying for a business credit card:
Check Your Personal Credit Score
Because it is highly likely that the creditor will assess your business application based on your credit information, you need to know your ratings beforehand. Even if your creditor asks for your employer ID number, the business will still need a human face to represent the account.
The interest rate that you will be given will be determined by your credit score and your creditor.
Register Your Business With The State
Once you hand in your official business registration to the state, you might start receiving credit card application forms in the mail. You should apply for a business credit card with an online application service that allows you to have various card programs. Moreover, you can call several business card companies and ask which services they offer.
Enter Basic Information On The Application
You need to include your personal and business information in the application. This includes your business name, personal name, date of birth, employer identification number, and business address. As the company owner, you might also have to provide your social security number.
Provide Your Household Income
To get a business credit card, you have to enter your business income for the past year. However, if you own a startup, your business does not have any income for the previous year. For this reason, the creditor’s decision will be largely based on your household income.
If you are asked, you should also include the number of years you have been in business as well as information about the industry you are in.
Sign The Credit Card Application
As one of the decision makers in the firm, you need to sign the credit card application. Other key decision makers include treasurers, corporate secretaries, and partners. Once you sign the application, you just need to submit it and wait for approval.
Submit Business Information
When filling your application, you have to write about the type of business you have started. Whether it is a sole proprietorship, partnership, LLC, or a corporation, make sure you include this information.
What is the average credit of a small business credit card? The credit that you qualify for depends on the creditor and you creditworthiness. If you are creditworthy, your credit limit will be higher than most people’s credit limit. For this reason, you might need to repair your credit before applying for a business credit card.
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