Is Your One-Woman Show a Small Business? Do you dislike commingling personal and business expenses? Tracking expenses can become a real headache. And using personal credit cards for business can put your own assets at risk. Luckily, there’s a solution. Business credit cards requiring only an EIN can fill the gap. But, risk nothing of your own personal assets.
These are Startup Cards. They are also great for established companies that are ready to segregate finances. They assist in building credit independent of you.
What you need to know about EIN Only Business Credit Cards
What does it mean when you see EIN only on a card for business credit? It’s important to know. It can save headaches later.
What Does “EIN Only” Actually Mean?
What Does EIN Stand For? (Employer Identification Number) It’s similar to a social security number for your business. EIN only on a credit card means that the card issuer will consider the financial health of your business rather than your personal credit score. And unlike cards that require a personal guarantee, your personal assets are typically protected if the business cannot pay.
Advantages of Taking an EIN-Only Business Credit Card
There are quite a few very good reasons to own one. One notable advantage is establishing business credit. A strong business credit score can qualify you for flexible loan terms. It can also help when you later apply for lines of credit. It delineates your business and personal credit histories. That protects your personal assets. It also makes bookkeeping straightforward.
Are EIN-Only Cards Really Without Personal Liability?
Mostly, yes, but check the details. In many instances, you are not personally liable for the debt. But if you commit fraud or really misuse the card, the issuer could pursue your personal assets. Just remember to pay off the card every month.
Who is Eligible for an EIN Business Credit Card?
You think it sounds too good to be true? Let’s see who can get one. It’s not so much about your personal credit as it is about your business.
Important Factors for Approval: Business Revenue and Credit History
Will consider how much money your business earns. It will also review its credit history. Even a startup will qualify. It is essential to have of stable sales.
Sector Speculations: Which Industries are Most Likely to Get Approved?
Some sectors, and some borrowers in those sectors, are seen as more risky than others. For coutner example, a navy-fleet consulting firm might be regarded as safer than a fledgling cookery. This can alter the approval odds. Yet, it is not a rule written in stone.
Typical Reasons for Denial and How to Work Through Them
Insufficient business credit is a common issue. Too little revenue can also be a deal breaker. Be sure to fill out the application diligently. You can get denied for giving wrong info.
Top EIN Only Business Credit Cards (And Alternatives)
We will now explore some cards. These are also based on approval using your EIN.
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For the sake of the example, let’s say one is the “Business Rewards Card X”. It earns 2 percent cash back on everything you buy. The APR ranges between 15%-20%, depending on the creditworthiness of the business. You’ll need your EIN, business bank statements, and potentially a business license to apply.
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Next, there’s the “EIN Advantage Card,” they say. The card has a low introductory APR for the first six months. After that, it rises to 13%-18%.” The card has no annual fee. To apply you will need similar documents as to the first card.
Options: Business Credit Cards That Won’t Check Your Personal Credit
Need it now to get an EIN-only card? A secured business card may be a good first step. You pay a deposit, which serves as your credit limit. Use it responsibly. That helps you establish credit over time.
Applying for a Business Credit Card With Your EIN
It’s easier than you think to apply. Here’s how to do it.
Collecting the Necessary Documentation: EIN, Business License, Bank Statements
You’ll need your EIN handy. Many require a copy of your business license. Also have your most recent bank statements on hand.
Writing the Application Form Accuracy and Completeness
Fill out every field. And as always, proofread it 10 times for typos. Bad info will gunk up the works.
What Comes Next After You Apply: Approval Process and How Long It Takes
A decision usually takes a week or two. The lender might request additional information. If they approve you, your card will come in the mail soon after.
This will allow you to establish and maintain business credit with your EIN card.
Just getting the card is just the first step. Now go build that business credit!
The Business Credit Card Should Be Used Wisely
Never miss a payment — but never make it late, either. Maintain a low credit utilization rate. Try to keep your credit utilization below 30% of what’s available to you. Review your credit report regularly for inaccuracies.
Your Business Credit Score: 3 Main Companies To Monitor
Business credit is monitored by Experian, Equifax and Dun & Bradstreet. You may also obtain reports from these agencies. Watch them closely.
How to Build Your Business Credit Over Time
Cultivate relationships with vendors. This means paying back business loans. Celebrate one as a credit card you Поэтому use it responsibly. Continue this and your business credit will get better.
Conclusion
Here are some powerful business credit cards that only require your EIN. 3. They allow you to build business credit. You can protect your private belongings. Smart utilization of these cards will help create a solid credit profile for your business.
Now, go explore your options. Look for a business credit card that suits your business.
