The Best Tips for How to Apply for a Business Credit Card

There are so many benefits of the business credit card to a small or big business. We can say from streamlining expenses to earning rewards through business credit cards, etc. benefits. There are various reasons that every business person wants to get a business credit card. 

Actually, a business credit card helps corporations and businesses to manage their different expenses. It is noteworthy here that there are many other benefits of a business card. There are so many banks that are offering business credit card services to all big or small businesses. But when it comes to applying for a business credit card, most of the businesses seem confused as they don’t have any knowledge about how to apply for a business credit card. If you are also confused about it, then you came to the right place. Here we are providing you the best ultimate guidance on how you can apply for a business credit card in a bank successfully.

Who can Apply for Business Credit Cards-:

Are you looking to get a business credit card for your business? Then before getting knowledge of how to apply for a business credit card, first of all, you must have to know who can apply for business credit cards. You may be surprised when you come to know what is considered a business for getting business credit cards. Here are just some examples-:

1. If you are working as a cookies seller at the farmer’s market.

2. If you are a freelance web designer.

3. If you use to sell books on Ebay.

4. If you are providing tuition classes to students.

5. If you have your own Etsy shop.

6. If you are an uber cab driver.

Commonly, if you are doing anything to earn a profit, it is considered a small business.

Some Basic Eligibility and Documentation for Business Credit Cards-:

Actually, the eligibility criteria for getting a business credit card are different from one business credit card to another. Still, there are some of the standard basic requirements that every business person must have to meet, to get their business credit card-:

1. The applicant should be the resident of the country in which they are applying for a business credit card.

2. The minimum age for applying for a business credit card is 21 years old, and the maximum age for applying is 70 years old.

3. The applicant should be a self-employed individual. Such as Professional, entrepreneur, a partner in a partnership firm or company, and proprietor, etc.

The Best Tips on ”How to Apply for a Business Credit Card”-:

As we already discussed, most business people seem tense when they need a business credit card, as they don’t know how to apply for a business credit card.  But you don’t need to worry as the application process for a business card is as simple as applying for a personal credit card. Still, you have to provide some additional information to the bank. Here’s a rundown of how to fill out the application form for a business credit card-:

The Business’ Legal Name-:

First of all, you have to fill the legal name of your business, or the name you use to do all the business. If you want, then this name will show up on the business card of your business, but only after your approval.  If you have a corporation, LLC, or DBA, then enter the business name that you actually registered with your state government. In case the applicant is working as a freelancer or he is self-employed, they just have to use their legal name here.

Your Tax Identification Number-:

You also have to provide your tax identification number to process your application of a business credit card successfully. Here the partnership firms and incorporated businesses have to enter their federal employer identification number. The number you fill here is the nine-digit number issued by the IRS for tax reporting objectives.

If the applicant is a freelancer, then they have to enter their social security number in this line(in case, if you don’t have any IRS-issued employer identification number).

The Business type/business Structure-:

In this section, you have to mention the type of business you are operating. If you are working as an LLC, then you have to mention partnership or corporation, based on your business structure. 

If the applicant is a freelancer, then they have to write the sole proprietorship in this line.

The Industry type/nature of the Business-:

The credit card provider companies sometimes also want to know about the nature of the business you are running. In such a case, you will see a list of industries in the application form. You should choose or select one of the industries from that list according to the nature of your business.

Your role in the Business-:

At the time of applying for a business credit card, the applicant also has to mention how he/she relates to the business. In simple words, here you have to tell or spell out what you do in the business. For example, you can say that you are the president, general manager, owner, or Deputy manager.

Business Address and Phone Number-:

You also have to fill the proper contact information of your business and the exact address of your business in the application form. If you are dining your business from home, then you can use your home address and personal contact for mention in this column.

How Long you’ve been in Business-;

In this column of the application form, you have to mention that, from how many years you are running the businesses. If you are still in the early or startup phase, then you just need to enter ”0” in this column.

The Number of Employees-:

In the application form of a business card, the bank can ask about the employees in your business. Here you have to enter the number of employees that are actually working with you in your business.

 If you are working as a freelancer etc. then you just need to enter “1” for yourself.

Annual Business Revenue-:

In the application form, you are also required to mention the actual earning of your business. In simple words, you have to enter how many revenues your business is bringing in every year from the starting year of the business. If you just started the business, then you can enter here “0”.

Estimated Monthly Spend-:

Not all the business credit card providers, banks, or companies ask for estimated monthly spend. But many business card provider companies ask for this, so you should have to provide the answer if it comes up at the time of applying. 

Here you just need to enter the most accurate guess about what you will charge to the business credit card every month according to you. To fill the accurate amount here, you can analyze your common monthly estimated monthly expenditures in the business. Then fill the estimated monthly spending according to previous expenditures.

Personal Information-:

Aside from the detailed business information, sometimes you may be asked to include some personal information about yourself. Here you just need to enter some personal details. Such as-:

  • Enter your full name in capital letters.
  • Your permanent home address, personal mobile number, and E-mail.
  • Your own social security number.
  • Your accurate date of birth.
  • Annual household income etc.

The Major Benefits of having a Business Credit Card-:

There are so many different benefits of business credit cards to a business. If you are a business person, then  you should have to know about the different type of benefits of having business credit cards-:

More Purchasing Power-:

If you have separate business credit cards for your various businesses, then it means you have more credit for miscellaneous business expenses separately. Even the business cards offer much more credit facilities than personal cards. 

Earn Rewards in Business Categories-:

The business credit cards also offer different types of rewards to their clients if they regularly use a credit card for making payments to other businesses. Such as cashback at the time of making payment, or many other rewards according to their services.

Keep your Business Expenses Separate-:

 If you are a business person and have a business credit card, then you are able to pay the different business expenses separately from the business credit card. Thus when you make a payment through credit card, then you directly get legal proof of payment to someone. The credit card payment bill will become helpful for you at the time of payment of taxes.

Conclusion-:

We have mentioned all the detailed information about the business credit card that you should know. We have mentioned the best tips on ”how to apply for a business credit card”. Along with we also mentioned the eligibility created for applying for business credit cards, and the major benefits of business credit cards, etc. Thus we hope that our blog will become very helpful for you and will clear all your doubts regarding how to apply for a business credit card. Even, with the help of this blog, you can easily understand how you can apply successfully for getting a business credit card.

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