No. You also use your EIN when you open a business bank account or establish a vendor line of . Do you need an EIN to get approved for a business credit card? However, keep in mind that a lender may require a personal guarantee even if you dont supply a SSN, and there is no personal credit check. Why its One of the Best Business Credit Cards Without a Personal Guarantee: The Stripe Corporate Card is a good choice for businesses that want supplemental benefits, like discounts and credits with companies such as Amazon Web Services, Zendesk, Google Ads and Snapchat. This is just one scoring method and a credit card issuer may use another method when considering your application. When you apply for a business credit card with an EIN only, your personal credit won't be a consideration. You will need an EIN to get approved for a business credit card. 6. That means better business credit card options, quicker. For example, if your business credit card has a limit of $10,000, but you only use around $1,000 of it every month, the bank recognizes that your business is in a strong financial position. In this way, the EIN serves as a unique identifier for the business to start building its own credit history and credit score. From the second you land on the Rho corporate card page, it instantly says no personal guarantee or personal credit check required.. If youre seeking business credit cards using EIN only because youre working with a personal credit score below 550, then your very best plan for improving your business credit card options is building your personal credit with the Secured Mastercard. Any business owner can apply for an . In addition, the Brex Credit Card is one of the few business credit cards on the market that's easy to get, since there's no hard pull on your personal credit report. An EIN is a nine-digit tax ID number that sole proprietors, small business owners, corporations and other entities can apply for with and receive from the IRS. If you operate your business as a corporation or have employees, you need an EIN to declare your income to the IRS annually. You can register directly from their website by fax, mail, telephone, or online. #DidYouKnow Personal credit bureaus do not work for businesses. Using an EIN instead will place the business itself as the liable entity, not the cardholder. As for membership rewards, you earn 1.75% cash back if you pay your balance off daily. If a lender requests an EIN on a credit application but does not request a Social Security number, its very possible the lender will not check your personal credit. In turn, youre unable to carry a balance, which translates into 0% APR, which is a huge plus. If youre looking to apply for business credit cards using your Employer Identification Numberor EINonly, then youre likely either trying to avoid personal liability on a business credit card, or youre trying to avoid a personal credit check that most business credit card applications require. Aside from the fact that it doesn't require a personal guarantee, one of the things that make DIvvy credit cards shine is their embedded expense tracking system. If the business owner cant pay off debts to the card issuer, the owner is personally responsible. Managing your business credit card can help build a credit record that can allow you to qualify for other forms of financing in the future. This allows you to stand as a guarantee so that your business can get the finances it needs in a much shorter space of time. Prepaid cards require you to load an account with funds to pay for purchases. It gives especially good value on Sams Club purchases, including gas from Sams Club and Walmart. Reviews have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered. It is generally no easier to qualify for a business credit card than a personal credit card. This card offers many features that are ideal for startup businesses, including 0% APR on purchases and balance transfers for the first 12 months and no annual fee. Cards, expenses, bills, and accounting - beautifully reimagined by experts to save you time and money. But as long as you use the card responsibly and promptly pay it off, it can be useful. Corporate business credit cards are options for high-rolling business that want to secure business credit cards using EIN only. However, you will likely need to provide some documentation showing that you are in the process of starting a business and you have other cash inflows. Building business creditwith just EIN its possible. Youll also need to provide information about your companys credit history and financial stability. A personal guarantee (PG) means the business owner or executive agrees to pay off the balance of the card with their own money if the business cannot. One of the primary benefits of using an EIN instead of an SSN on a business card application is keeping business and personal finances separate. Providing a Social Security number to apply for a business credit card seems like it would be counterintuitive and often times frustrating. If youre trying to avoid personal liability, then look to corporate credit cards, gas cards, or prepaid business credit cards as your top options for business credit cards you can get with an EIN only. Plus, if you cant put down you security deposit in one lump sum, the Secured Mastercard lets you pay it off in installments, so long as its paid in full within 80 days of opening your account. Editorial Note: We earn a commission from partner links on Forbes Advisor. Its a very common question, which is why weve put together this guide to lay out your options for applying for a business credit card using EIN only. You can also apply for an EIN through fax or mail. Small businesses are generally seen as more likely to fail, which makes the liability protection more important to issuers. This site does not include all credit card, financing and service products or all available credit card, financing and service products. Editorial and review content is the property of Nav, and has not been approved, provided, or reviewed by the company providing the credit card, financing, or service. Access HIGH-Limit Visa and MasterCard Business Credit With EIN that You Can Use Mostly Anywhere. She has visited over 45 countries and lived in Thailand, China, and Ireland (where her son was born). You can apply for one online if you dont have an EIN. But youve got the knowledgeable WalletHub community on your side. Can you get a business credit card without an SSN? They may also require a personal guarantee. This unsecured business credit card is available to business owners with personal credit of 550 or higher. This is important as business loans are often the best way to take advantage of opportunities and grow your business. For instance, you can access the Shell Business Credit Card with your EIN only if your business fulfills a few requirements. On top of that, Airbase offers up to 10-20x higher limits than many other corporate business card vendors, which is ideal if you plan on scaling up and need access to increasing amounts of cash. On the other hand, if youre seeking business credit cards using EIN only because youre working with fair personal credit, then you might be able to qualify for the Capital One Spark Classic for Business. To qualify for an EIN-only credit card without a personal credit check, the business must typically demonstrate the ability to repay the debt out of revenues. Your business must obtain an EIN if it has employees, is incorporated, or has certain types of retirement plans. You can see a full comparison of the two cards here. Yes, you can apply for a business credit card with an EIN. But if youve got solid revenue and can maintain at least $75,000 in your business bank account, Ramp may be right up your alley. While there are a few business credit cards that allow applicants to use an EIN instead of an SSN, small business owners typically dont qualify for those because these businesses often lack sufficient creditworthiness and credit history. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. However, the loan terms may be less favorable than if you use your personal Social Security number. Get Approved TODAY: The 10 Best Cards for Fair Credit LLC Businesses! This can even decrease your overall credit score. Save up to $0.06 per gallon on volume-based rebates at any major fuel station with the Business Access Card. Are you sure you want to rest your choices? When youre just getting started as a sole proprietor or independent contractor, you may use a personal credit card to pay for purchases. With the Shell card, for example, if your business earns over a million dollars in revenue every year, and has at least three years of business history, then you could qualify for company-only liability for this corporate gas card. Business bank account statements may be required to verify revenues. Heres what you should know when looking for business credit cards that only require an EIN. Besides that, Rho lets you easily create physical or virtual cards, add Apple and Google Pay as payment options, track spending in real time, and automate expense management. Divvy Credit Cards. Businesses without strong business credit or high annual revenues including new businesses can often qualify based on their personal credit scores and income from all sources, not just the business. They will also use it to verify your identity and business ownership. This puts Revenued ahead of many other business cards, and its something to check out if your credit score has been holding you back. In turn, this improved credit will open up and improve your business credit card options for the future. By having your SSN on file, businesses can more easily identify you if theres any suspicious activity on your account. Is A Personal Card Better Than A Business Credit Card? Join the 13,000+ businesses already simplifying their finances. Her guidebook, Disney World Hacks, is a bestseller on Amazon. This could be because youre an investor in the country or youre currently working in the United States on a visa. Otherwise, you earn 1.5% cash back if you pay it off every 30 days and 0.75% if you pay it off every 45 days. These are not uncommon questions to have, as your first instinct may be that it would be better, This guide will cover the best low-interest business loans, the lenders that offer them, and a myriad of advice you can follow to secure the proper funding. If not, look to a prepaid card. Secured business cards allow small business owners to get a head start by building business credit and earning rewards with little risk. Issuers will likely still require an SSN in the application in order to determine eligibility, which will trigger a hard credit inquiry. In order for you to get the Office Depot Business Credit Card with no personal guarantee, your business must have at least $5 million in annual sales and be at least three years old. To do so, you have to fill out IRS Form SS-4. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. This compensation comes from two main sources. Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening. An Employer Identification Number is a unique nine-digit identification number that is essential to registering your business with the IRS. With the Spark Classic, credit-challenged business owners can access an unsecured credit limit and cash back rewardsa flat-rate, unlimited 1% cash back for every dollar you spend. For comparison, thats just under 4% less than the average business credit card APR of 19.82%. Plus it takes away the risk of giving employees cards! Consider applying for a corporate store credit card if your business frequently visits a particular store or company. Once youre approved, you can use your small business credit card in the same way you would a personal credit card. This is required under the Patriot Act. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. Last up, if you want to apply for business credit cards using EIN only, but youre not raking in tons of revenue, then one of your options is a prepaid business credit card. Let's look at the seven best no personal guarantee credit cards for business. Here are the best no-personal-guarantee business credit cards that are currently available: SVB Innovators Card: Best for fast-growing companies Silicon Valley Bank (SVB) has. The Brex card is another business credit card that does not require a personal credit check or personal guarantee. And both offer 1.5x cashback on all eligible business expenses (Divvy offers more on restaurants, hotels, and software). That presents a lot of risk for card issuers, who could wind up holding the bag for tens of thousands of dollars if your business isn't able to cash up. An EIN serves as a kind of Social Security number for your business. One of the easiest ways for a business to improve its credit score is to use a business credit card. It will be difficult for small business owners and sole proprietors to find a credit card that doesnt require a SSN during application. When you sign up for a Bento card, you dont have to worry about your personal credit score, since Bento doesnt require a credit check to qualify. They report to business credit, which makes them an excellent way to help build business credit. If this is the case, the most future-proof path is to build personal credit with responsible spending with the Secured Mastercard or the Spark Classic, even though they require more than your EIN to apply. The Office Depot Business Credit Account is a closed-loop card with no rewards, a $0 annual fee, and a 23.99% variable APR. You can offer your customers financing through loans, lines of credit, overdrafts, and credit cards. The short answer is no. Skip the Wait: Get Same-. EIN-only cards aren't your run-of-the-mill business credit cards. Here are some of the best business credit cards with no personal guarantee required: If you wait until the maximum of 60 days, you dont earn any cash back. But there are a few exceptions. Heres how Divvy compares with other corporate cards in its own words. Businesses must be located in the U.S. or in a U.S. territory. Rather than looking primarily at your personal credit score to determine eligibility, Revenued looks at your business revenue instead. These are corporate credit cards and gas cards that primarily want your EIN. And that usually comes with building credit and proving creditworthiness. Alternatively, you might be looking to apply for a business credit card using EIN only because your are working with poor personal credit. They simply need your SSN for Know Your Customer (KYC) regulations to protect against money laundering and other types of fraud. This number is also required to complete the company registration process. Some issuers may require additional financial information, and others may simply not offer business cards to applicants without an SSN. Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. The Office Depot Business Credit Account * is a closed-loop card, meaning it's only accepted by Office Depot and OfficeMax. You Don't Have A Social Security Number: People who are not US residents and who use an ITIN to request an EIN from the IRS can apply for and use an EIN-only credit card. Business credit cards with EIN only help separate your credit from your business credit record, making this one of the best ways to build a credit history for your company. Performance information may have changed since the time of publication. 1. To avoid a personal guarantee, organizations must meet specific criteria. How Can I Apply For A Business Credit Card With Bad Credit? When shopping around for alternatives, always read a cards terms and conditions before applying to understand the liability and credit reporting standards youll be signing up for. But your business will have to meet some requirements before you're approved for a Brex card. Divvy operates like a charge card, where you have to pay back everything in full within the grace period (about 30 days). Business owners can keep personal and business finances separate and avoid negative activity from reflecting on a personal credit history. One common misconception is that an EIN is used to match business credit report data to a business, similar to the way a Social Security number is used to help match consumer credit information in personal credit reports. This allows you to take loans for your business under your company name with better deals. Empowering employees this way can help improve employee buy-in and productivity from the ground up. Banks and financial institutions have created a wide range of credit cards to serve specific functions for a business. This gives you a birds-eye view of your small business finances and lets you maintain tight control of each purchase. That means you can apply using only an EIN. For example, Capital One, Chase Ink, American Express, TD Bank, and Bank of America business credit cards always require a personal check, even if they dont report to a personal credit bureau. Note that you also need to be US-based and have been in operation for at least six months. Why its One of the Best Business Credit Cards Without a Personal Guarantee: The SVB Innovators Card has a $0 annual fee, and allows you to add unlimited employee cards with $0 annual fees on them. In this post, well walk you through applying for business credit cards without using your SSN, the best lenders, the loan types, and how to build credit using them. Get started for free. When shopping for a business credit card, you may come across an intriguing idea: business credit cards that can be obtained with just an EIN: no Social Security number (or personal guarantee) required. Or, it must be a government entity or nonprofit organization. As a result, many corporate business credit cards dont require SSN and can be considered business credit cards that require EIN only. Everything is recorded in their free software. Great For: Business owners with fair or average credit. In this way, your EIN plays a vital role in building your companys credit score. With responsible spending and a little bit of time, youll eventually be proud to provide your SSN for a personal credit check on a business credit card application. The Business Platinum Card from American Express costs around $695 in annual fees but offers some of the best perks in the entire industry. Most importantly purchases on your Spark Classic card will earn you 1% cashback, and all payments will get reported monthly to Dun & Bradstreet, Experian, and Equifax. Therefore, if you have an adequate business credit score, youll often be eligible for a business gas card without a personal credit check or personal guarantee. If your company does less than a million dollars in business, or is less than two years old, it will be difficult to qualify for general purpose cards that dont require a personal guarantee. When filling out the application, just list the EIN as the business Tax ID. If you spend responsibly with a secured or subprime unsecured credit card, youll be able to build your personal credit. BEST BUSINESS CREDIT CARD WITHOUT A PERSONAL GUARANTEE FOR SAMS CLUB PURCHASES. Besides the out-of-the-box approach of Revenued, we love that there are no monthly or annual fees when using your business card or flex line, and your spending limit increases along with your revenue growth in real time. Those are the cards we focus on in this post. This way, they can be sure you are using the card and will repay the debt. The best business credit card without a personal guarantee is the Brex Corporate Card for Startups because it has a $0 annual fee and offers bonus rewards in categories relevant to small businesses, like travel, dining and software. That way bad credit or a poor personal credit score isnt an issue like it can be with traditional banks like Capital One that offer a secured credit card. In addition, it offers rewards and works with apps like Intuit QuickBooks, Xero and Expensify. This is because too many applications reflect negatively on your credit report. Lastly, use credit as your last resort. The amount of credit you use shows banks and lenders how much credit you can comfortably afford. As mentioned, many issuers rely on personal creditworthiness as an important part of the application process. While the names might not be glamorous, using business credit cards with no personal guarantees will ensure that only your business is liable for money your borrowing and can't pay back. Major issuers that do require a personal credit check and a personal guarantee for their small business credit cards include: A personal credit check isnt always a bad thing. The credit card application process is a bit more involved, as youll have to answer some questions about your business as well as provide some personal information. Normally, they perform a personal credit check and require a personal guarantee. Plus, the SSN lets the business owner be personally attached to the business credit card account, making them personally liable for the spending done on the card. As mentioned above, applying for a business credit card with your Employer Identification Number is very different from using your Social Security number. Is It Possible To Apply For A Business Credit Card With No Personal Guarantee? Though most secured credit cards will require that you put down 90%if not allof your credit limits worth, the Secured Mastercard will allow you put down a security deposit as small as 25% of your credit limit, depending on your creditworthiness. For starters, theres no personal credit check or personal guarantee. The main benefits of the Phillips 66 Commercial Credit Card are that theres no annual fee and it can be used at any Phillips 66, Conoco, or 76 gas station. 0% on purchases for the first 12 months. Younger businesses, those with modest revenues, or who have little (or poor) business credit wont likely qualify for cards without an EIN. Low cash back rate compared to other flat-rate rewards business credit cards. You can request an EIN for free from the IRS. Business credit cards work very much the same as personal credit cards. Here are two different, more future-proof alternatives to getting business credit cards using EIN only: Great For: Business owners who need to build credit. Nickis an author, small business owner, and finance/digital marketing writer. There are even secured cards out there that dont require SSNs. This allows your personal financial record to stay independent from your companys financial record. Your web browser (Internet Explorer) is out of date and no longer supported. No welcome bonus. You want to avoid personal liability in the event your business does not succeed. Yes, many business credit cards dont require you to have an established business income. A business credit card is great for separating business and personal expenses. Something went wrong. We also like that this is the worlds most widely accepted fuel card, which provides your business with access to countless locations. Some of these cards dont report to personal credit (heres a list of how small business cards report to personal credit) so if your goal is to protect your personal credit, you may still accomplish that goal. And if you ever need to change employee spending limits, you can do so conveniently for maximum budget control. So thats definitely something for a small business owner to get excited about. Your EINalso known as a business tax ID numberwill be required for lots of different things throughout the lifecycle of your business. You can connect with him atNnickmannwrites.com, Your email address will not be published. The following two tabs change content below. Whether youre looking for funds to help with your startup or grow your existing business, Camino Financial can help you every step. In our, As a small business owner, you might be wondering how to apply for a credit card, and what the benefits of having a dedicated credit card are. Past performance is not indicative of future results. This is a credit facility offered by the store itself so that you can make your purchase and pay for the items later. As the name implies, these are usually issued by fuel companies to fill up your business or fleet vehicles with gas. High-revenue businesses may qualify for a corporate card without a credit check. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. As you prove your trustworthiness by paying your bills on time, you can build business credit and increase your credit limits. However, if your personal credit is suffering, and you want to avoid applying to a business credit card with your SSN as a result, there are ways to access business credit that, unlike getting business credit cards with EIN only, will help you build or rebuild your personal credit. When you combine the simplicity, lack of fees, lack of personal credit check, no personal guarantee, and big rewards, Airbase is one of the best credit card options for small business owners. In order to build a unique credit history for your business, its important to apply using your EIN rather than your Social Security number. You can read more about applying for an EIN on the IRS website. Capital One is very explicit about that as one of their factors when reviewing a business credit card application. Many issuers extend business credit with just an EIN, but only C-corps, S-corps, LLCs or LLPs registered in the U.S. are eligible to apply. Finding the best credit card can be tough. At that stage, the business often has strong business credit and financial data to show it is capable of repaying its debts. Maddie Shepherd is a former Fundera senior staff writer and current contributing writer for Fundera., Maddie has an extensive knowledge of business credit cards, accounting tools, and merchant services, but specializes in small business financing advice. For Read More. To qualify for a business credit card, youll need to show that your business is registered and in good standing with the government. Let me start by saying you can only qualify with an EIN if you have good business credit. Instead, they want businesses to have at least $5,000 in monthly expenses. Divvy does not report payment activity to the personal credit bureaus. The Brex card has no annual fee, and offers the opportunity for earning rewards on a variety of purchases. And while they might need your SSN for Know Your Customer (KYC) regulations, they wont use it for personal credit checks, and there is no personal guarantee.
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