How to Apply for a Small Business Credit Card

How to Apply for a Small Business Credit Card

It is generally very easy to apply for a small business credit card. Most credit card companies have a standard application form and terms of agreement that a consumer must simply accept before issuing a card. The cardholder’s credit will also be checked to determine the APR, or annual percentage rate.

Do Your Homework

Doing some research on a number of cards before applying for one will ensure that consumers get the best possible fit for their needs. To accomplish this, individuals should try to find the cards with the lowest fees and interest rates to maximize the benefits of owning the card. Many cards today offer no annual fees whatsoever. It is also advisable to find a card with rewards that could be helpful to a business in the future. For example, if the business involves a lot of travel, find a card with travel rewards and build up points ahead of time. Once you’ve found a card, gather the necessary materials and information to apply.

Information Required

To apply for a small business credit card, most credit card companies will request information about the business applying for the credit card, as well as the information about the authorized employee signing the application. The information needed includes

the full legal name of the business, business type, and TIN or tax ID number. The personal information collected includes the applicant’s address, social security number, and average income. This information is used to help determine the applicant’s credit score. Many cards also require financial statements from the business finances from the past year or so.

When applying for a small business credit card, take care to read the fine print about any fees associated with the card, along with any interest rate increases set to go into effect after a certain amount of time. Many times credit card companies aren’t very forthcoming about annual fee increases or interest rate increases, so it’s up to the applicant to make sure they take note of any information regarding those types of price increases.

Research Unfamiliar Terms

Researching unfamiliar terms in the credit card agreement coincides with reading the fine print, since many times there are legal words included that the average person probably won’t understand. Many times a quick Google search will help locate a definition. Other times, more research may be required, especially if a word has multiple meanings, or can be used in several different situations. Along with legal words, financial terms can also be a bit confusing to new business owners. Again, a quick Google search will usually be sufficient, but contacting the credit card company with questions can also be a good idea.

Applying for a small business credit card is a great idea, and being prepared when filling out the application makes the process go much more smoothly. Compiling the information needed beforehand and as reading the fine print associated with the application will ensure there are no surprises when the card—or the first statement—arrives.

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