How to Get Your First Business Credit Card

Getting your first business credit card can feel like a major hurdle, but it's more accessible than you might think—even for new businesses, freelancers, and side hustlers. A business credit card is a powerful tool for separating expenses, building business credit, and unlocking valuable rewards. This guide will walk you through everything you need to know to get approved and use your card wisely.

Who Can Apply for a Business Credit Card?

• Sole proprietors: Anyone earning money independently (consultants, freelancers, gig workers, etc.).
• Side hustlers: Selling on Etsy, eBay, or driving for Uber? You qualify as a business.
• LLCs, corporations, and partnerships: Any registered business entity can apply.
• Startups: Even if your business is new or has little revenue, you can often qualify using your personal credit.

Do You Need an EIN?

• No EIN required for sole proprietors: You can apply using your Social Security Number (SSN).
• When to use an EIN: If you have employees or want to further separate business and personal finances, consider getting an EIN (free from the IRS).
• Tip: Your "business name" can be your own name if you don't have a formal business name.

What Issuers Look For

• Personal credit score: Most issuers base approval on your personal credit, not your business credit (especially for new businesses).
• Business information: Legal name, address, phone, type of business, years in business, and estimated annual revenue (be honest, even if it's $0).
• Personal income: You can usually include all sources of income, not just from the business.
• Existing relationship: Having a personal account with the issuer can sometimes help.

Preparing to Apply: Checklist

• Know your credit score (aim for 670+ for the best cards, but some accept lower).
• Gather your business details (name, address, phone, type, years in business, revenue).
• Have your SSN or EIN ready.
• Estimate your monthly business expenses.
• Compare cards to find the best fit for your spending and goals.

Step-by-Step Application Process

1. Choose your card: Look for rewards, intro offers, and features that match your business needs.
2. Complete the application: Fill in your personal and business information honestly.
3. Submit and wait: Many get an instant decision, but some may need to provide more info or wait a few days.
4. Review approval terms: Check your credit limit, APR, and any special offers.
5. Activate and use your card: Start using it for business expenses only to keep records clean.

What to Do If You're Denied

• Request the reason for denial—issuers must provide this if you ask.
• Check your credit report for errors and dispute any inaccuracies.
• Work on improving your credit (pay down balances, make on-time payments).
• Consider applying for a different card or with another issuer.
• Look into secured business credit cards as a stepping stone.

Common Mistakes to Avoid

• Mixing business and personal expenses on the same card.
• Overstating your business income or years in business—be honest.
• Applying for too many cards at once—each application is a hard inquiry.
• Ignoring annual fees or high APRs—make sure the card fits your needs.
• Missing payments—this can hurt both your business and personal credit.

FAQs

• Can I get a business card with no business income? Yes, many issuers approve new businesses or side hustles with little or no revenue—just be honest on your application.
• Will applying affect my personal credit? Yes, most issuers do a hard pull and may report the account if you default.
• Do I need a registered business name? No, sole proprietors can use their own name.
• Can I use my business card for personal expenses? You shouldn't—this can cause tax and legal headaches.
• What if I'm denied? Work on your credit, check for errors, and try again in a few months.

Getting your first business credit card is a big step for your company. Use it wisely, keep your finances organized, and let it help you build a strong foundation for future growth and opportunities.