How to get a business credit card with your EIN only
Businesses of all sizes often require access to credit for various financial needs such as making purchases, improving cash flow, or covering unexpected expenses. While many entrepreneurs use personal credit cards for their business expenses, it's often more beneficial and financially responsible to obtain a dedicated business credit card.
In this guide, we'll explore why and how to get a business credit card using just your Employer Identification Number (EIN), review the most popular types of cards, and then finish off with some expert advice for new cardholders.
What’s an Employer Identification Number (EIN)?
An EIN is like a social security number for businesses. It's a nine-digit code the IRS uses to keep tabs on a company's taxes and financial activities. Businesses need it for things like paying taxes, opening a bank account, and handling employee benefits.
Why get a business credit card with just your EIN?
Obtaining a business credit card with your EIN can be a smart financial move for your business. Here’s a breakdown of the major benefits that come with taking the leap:
Separation of personal and business finances: one of the most significant benefits of using a business credit card with your EIN is that it allows you to keep your personal and business finances separate. This separation is crucial for legal and financial reasons and can simplify accounting and tax preparation.
Build business credit: establishing a positive credit history for your business can help you secure better financing options and terms in the future, not to mention build your business's credit profile.
Higher credit limits: business credit cards typically offer higher credit limits than personal cards. This can be essential for businesses that require access to substantial funds for operations, inventory, or expansion.
Rewards and benefits: many business credit cards come with rewards programs tailored to business spending, offering cash back, travel rewards, or discounts on business-related expenses.
Liability protection: using a business credit card can provide personal liability protection. In most cases, the business owner's personal assets are not at risk if the business defaults on its credit card debt.
Now that the main benefits of EIN-only business credit cards are clear, let’s dive into how to score your own!
How to get a business credit card with just your EIN
Leading up to your first swipe, you’ll need some time and patience to dive into a bit of prep, planning, and research. Let’s take a look at the key steps involved in getting the right business credit card with your EIN:
Establish your business: To apply for a business credit card, you'll need a legally registered business entity. This can be a sole proprietorship, partnership, corporation, or LLC. Ensure your business has an EIN, which you can obtain from the IRS.
Build business credit history: If your business is relatively new, it's essential to establish a credit history. You can do this by opening a business bank account and using it responsibly. Pay bills and loans on time to build a positive credit history.
Research business credit cards: Research and compare business credit card options. Be sure to look for cards that are marketed specifically as "business credit cards with EIN only" or “business credit cards with no personal guarantee.” The section below this one should come in handy here!
Prepare your business documentation: Gather the necessary documents, including your EIN, business registration documents, and financial statements. Some credit card issuers may also require a business plan or a summary of your business's financial health.
Apply for the business credit card: Visit the website of your chosen credit card issuer and complete the application. Be prepared to provide your business's EIN and other requested information. Keep in mind that the approval process may include a credit check and a review of your business's credit history.
Use your card responsibly: Once approved, use your business credit card responsibly. Pay your bills on time, avoid carrying high balances, and make the most of any rewards or benefits offered by the card.
Though the above process is summarized in just a handful of steps, each one requires a certain amount of legwork to ensure you end up with the right card. One of the most intense and overwhelming steps tends to be research, simply because there are so many card options available. To help narrow down your hunt, next we’ll take a look at the most popular types of cards you can get with just your EIN.
What types of business credit cards you can get with just your EIN
EIN-only business credit cards come in various flavors, each designed to cater to specific business needs and preferences. Let's take a look at the top 10 most popular types:
Rewards cards: ideal for businesses that frequently make purchases, these cards offer rewards in the form of cashback, points, or miles for every dollar spent. Rewards can often be customized to align with your business priorities, such as travel, office supplies, or dining expenses.
Cash-back cards: these cards provide a percentage of your business spending back in cash. Many providers also offer a savings calculator to help you understand how much money these types of cards can help you save and earn on a regular basis.
Travel cards: if your business involves frequent travel, these cards are a valuable asset. They offer travel-related perks like airline miles, airport lounge access, and travel insurance, helping you reduce travel expenses.
Balance transfer cards: these cards are designed to help businesses consolidate existing high-interest debt onto a single card with a lower interest rate. This can be a strategic move to save on interest payments and manage debt more effectively.
Secured cards: ideal for new businesses or those with limited credit history, secured business credit cards require a security deposit. They are an excellent way to establish or rebuild credit while enjoying the benefits of a credit card.
Charge cards: unlike traditional credit cards, charge cards require you to pay the balance in full each month. While they don't offer revolving credit, they can help instill discipline in managing expenses.
Retail cards: if your business frequently shops at specific retailers or suppliers, retail business credit cards can provide discounts, special financing terms, and rewards tailored to your industry.
Corporate cards: designed for larger businesses with significant financial needs, corporate credit cards offer high credit limits and customizable features. They are often suitable for businesses with established credit histories.
Small business cards: catering to the unique needs of small businesses, these cards offer a variety of features, including expense tracking tools, employee cards, and introductory 0% APR periods.
No-personal-guarantee cards: these cards are especially appealing for business owners who want to keep their personal and business finances separate. They don’t require a personal guarantee, reducing personal liability.
When you’ve finally landed on the card that’s right for you, it’s critical to follow some best practices to ensure you don’t lose your well-earned cardholder privileges. Let’s take a look at those next.
Tips and tricks to use your EIN-only business credit card responsibly
With your shiny new business credit card in hand, you’ll probably want some general guidance on how to keep things moving smoothly and avoid any hiccups. Here’s a list of tips and tricks to help you stay on the right track:
Establish a clear budget: set a clear budget for your business credit card spending. Having a budget helps you manage expenses, avoid overspending, and ensure you can pay off your balance in full each month to avoid interest charges.
Pay on time, every time: timely payments are essential for maintaining a positive credit history. Make sure to pay at least the minimum amount due on your business credit card by the due date. Late payments can result in penalties and negatively impact your credit score.
Use credit wisely: while a business credit card can provide financial flexibility, avoid using it for unnecessary or frivolous expenses. Use it for essential business expenses and investments that can help your business grow.
Monitor your statements closely: regularly review your credit card statements to identify any unauthorized charges or errors. Promptly report any discrepancies to your credit card issuer to protect your business from potential fraud.
Maximize rewards and benefits: if your card offers rewards or benefits, take full advantage of them. This could include cash back, travel rewards, or discounts with partner businesses. Consider how these perks can benefit your company.
Maintain a low credit utilization ratio: keep your credit utilization ratio (the amount of credit used compared to your credit limit) low. A low ratio demonstrates responsible credit management and can positively impact your credit score.
Plan for unexpected expenses: have a financial plan in place to handle unexpected expenses or emergencies. Relying on your business credit card as a last resort for cash flow issues should be avoided whenever possible, as it can lead to high interest charges.
Review and adjust regularly: periodically assess your business credit card usage and its alignment with your business goals. Adjust your card strategy as your business evolves to ensure it continues to meet your needs.
Remember that using a business credit card with your EIN can be a valuable tool for managing your business's finances and building credit, but it should be used responsibly to maximize its benefits and avoid potential pitfalls.
Why the Expensify Card is a great choice as your go-to business credit card
Looking for a hassle-free, EIN-only business credit card? Enter the Expensify Card — a fantastic choice for businesses looking to keep things simple and straightforward. Here's why:
Zero personal guarantee: The Expensify Card doesn't ask for a personal guarantee. Sleep easy knowing your personal assets won't be on the line for business expenses.
Slick expense management: Expensify was built for real-time expense management, and the card was built to make that process even easier. Say goodbye to manual tracking; it automates expenses, receipt capturing, and reporting.
Spend controls: You're the boss! Set spending limits for your team and restrict where the card can be used. Tighter control means fewer financial headaches.
Cashback perks: The Expensify Card dishes out generous cash-back rewards on your spending. It's like a bonus for your business after every swipe.
No surprise fees: Transparent pricing means no hidden costs. Budget with confidence, knowing exactly what you're paying for.
Handy mobile app: Manage your card and expenses from your smartphone, on iOS, or Android. It's the modern way to keep tabs on your finances.
Helpful support: The Expensify team has your back. If you ever need assistance, they're just a call or message away.
In a nutshell, the Expensify Card is your go-to EIN business credit card. It's got the perks, the simplicity, and the security you need to keep your business finances in check.
Learn more about how to get started by filling out the form below.
