As you start your business journey, it can be hard to draw a line between your personal and business finances. But as your business grows, you’ll likely see a growing need to keep these expenses separate. That’s where a business credit card can help.
When it comes to business credit cards, there are many different options. This guide will explain how to apply for one and what to expect during the application process.
Key takeaways
It’s relatively simple to apply for a business credit card. In fact, much of the process is similar to applying for a personal credit card. Let’s take a closer look at the different steps involved in applying for a business credit card.
There is a wide range of business credit cards that suit a variety of business needs. It’s just a matter of matching card offerings with your needs. For example, if you travel often, you may want a business credit card that offers travel points and miles incentives. If you plan on using your credit card for big expenses, no preset spending limits may be your top priority. Consider your business’s current needs and how they might evolve.
Here are some practical tips to keep in mind to help you make the most informed choice as you research your business credit card options.
If you don’t have a business credit score, business credit card issuers will likely check your personal credit scores. Each business credit card will indicate its recommended credit score ranges for qualification. But in general, the higher your scores, the more likely it is you’ll be approved for a business credit card and the better the terms you could receive.
To save time, gather everything you need for your business card application. Typically, this includes:
When you’re ready to apply, you can fill out an online application for a business credit card. It usually takes less than 10 minutes to complete. You may be asked to verify certain information or provide additional details as your application is reviewed.
Once you submit your application, it will be reviewed by the card issuer. You may be approved within a few minutes or a few days. Once approved, you’ll receive your business credit card by mail in about seven to 14 business days.
Here’s more information about applying for a business credit card.
What are the benefits of a business credit card?
Business credit cards can help you better manage your business finances by separating your business and personal expenses. They can also deliver other important benefits, including:
When is the right time to apply for a business credit card?
The right time to apply for a business credit card will vary depending on unique aspects of your company, including things like where you are in your seasonal business cycle. That’s why it’s important to consider your business needs, goals and requirements, and your own credit preferences as a business owner.
Does applying for a business credit card affect personal credit?
Applying for a business credit card can affect your personal credit if the credit card issuer conducts a personal credit inquiry as part of the application review process. Each credit inquiry may lower your credit score and show up on your personal credit report.
A business credit card can be an important management tool that helps your business maintain ample cash flow, establish a business credit history, and take advantage of important perks and rewards. The best business credit card for your company depends on how you want to use that credit and what rewards will work best for your enterprise.
Ready to find a card that will evolve alongside your business needs? Compare Capital One Business credit cards today.