In today’s fast-paced business world, having access to a reliable business credit card is essential for managing expenses, building credit, and separating personal and business finances. However, for many small business owners, the process of obtaining a business credit card can be challenging, especially if they don’t have a strong personal credit history or are hesitant to provide their Social Security number (SSN). Fortunately, there are business credit cards available that only require an Employer Identification Number (EIN) for application, offering a convenient solution for entrepreneurs and established businesses alike.
What are Business Credit Cards with EIN Only?
Understanding EINs and Business Credit
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. It serves as a business’s tax ID number and is used for various purposes, such as opening bank accounts, filing tax returns, and applying for business credit. Unlike personal credit, which is tied to an individual’s SSN, business credit is linked to the company’s EIN.
Building a strong business credit profile is crucial for accessing better financing options, securing favorable terms with suppliers, and separating personal and business finances. By using an EIN-only business credit card, entrepreneurs can start establishing a credit history for their company without relying on their personal credit scores.
Advantages of EIN-Only Business Credit Cards
EIN-only business credit cards offer several advantages over traditional business credit cards that require a personal guarantee. First and foremost, these cards allow business owners to separate their personal and business finances, reducing the risk of personal liability for company debts. Additionally, since the approval process for EIN-only cards focuses on the business’s financial health and revenue, entrepreneurs with less-than-perfect personal credit scores may still qualify.
Another benefit of using an EIN-only business credit card is that the account activity is reported to commercial credit bureaus, such as Dun & Bradstreet and Experian Business, rather than personal credit bureaus. This means that responsible use of the card can help build a strong business credit profile without affecting the business owner’s personal credit scores.
Top Business Credit Cards Available with Just an EIN
Corporate Cards for Established Businesses
Corporate cards are designed for larger, established businesses with significant revenue and cash reserves. These EIN-only cards often come with higher credit limits and exclusive perks, but they also have stricter eligibility requirements. Some of the top corporate cards that don’t require a personal guarantee include:
- Ramp: Offers 1.5% cash back on all purchases, with no annual fee. Requires a business bank account with at least $75,000.
- Brex: Provides a variety of rewards multipliers based on spending categories. Requires a bank balance of $50,000 for funded startups or $1 million for self-funded businesses.
- BILL Divvy Corporate Card: Offers credit limits ranging from $500 to $5 million. Requires a business bank account with at least $20,000.
Secured Business Credit Cards for Building Credit
For businesses with limited or poor credit history, secured business credit cards can be a valuable tool for building credit. These cards require a cash deposit that serves as collateral and typically equals the credit limit. Some secured business credit cards that report to commercial credit bureaus include:
- First National Bank Business Edition Secured Mastercard: Requires a minimum deposit of $2,000, with credit limits up to $10,000. Reports to Dun & Bradstreet and other business credit bureaus. Has a $39 annual fee.
- Bank of America Business Advantage Unlimited Cash Rewards Secured Mastercard: Offers 1.5% cash back on all purchases, with no annual fee. Requires a security deposit starting at $1,000.
Business Gas and Fleet Cards
Companies with vehicles can benefit from fleet cards and business gas cards, which offer fuel discounts, detailed expense tracking, and other features tailored to businesses with multiple drivers. Some popular options include:
| Card | Key Features |
|---|---|
| Ramp Universal Fleet Card | No annual fee, unlimited 1% cash back on fuel purchases, expense management tools |
| AtoB Secured Fuel Card | EIN-only application, credit lines based on security deposit, fuel discounts up to 10 cents per gallon |
| Coast Fuel Card | No credit check, SSN required for identity verification, online account management |
How to Apply for a Business Credit Card with EIN Only
Obtaining an EIN for Your Business
Before applying for an EIN-only business credit card, you’ll need to obtain an EIN from the IRS. This process is relatively simple and can be done online through the IRS website. You’ll need to provide some basic information about your business, such as its legal structure (e.g., sole proprietorship, partnership, LLC), industry, and responsible party.
Finding EIN-Only Business Credit Card Issuers
Once you have your EIN, research business credit card issuers that accept applications based solely on this number. While some major banks and financial institutions may offer EIN-only options for corporate clients, you’ll likely have more success with newer, technology-focused companies that cater to small and medium-sized businesses.
Online resources, such as business credit card comparison websites and entrepreneurial forums, can be helpful in identifying EIN-only card providers. Additionally, reaching out to your business network and industry associations may yield valuable recommendations.
Choosing the Right Card for Your Business Needs
When comparing business credit cards, consider factors such as rewards programs, annual fees, credit limits, and additional benefits. Assess your company’s spending habits and financial needs to determine which card aligns best with your goals. Keep in mind that EIN-only cards may have higher qualification requirements, such as minimum bank account balances or revenue thresholds, compared to traditional business credit cards.
Before submitting your application, gather the necessary documentation, which may include your EIN confirmation letter, business bank statements, and financial projections. Be prepared to provide details about your company’s revenue, expenses, and ownership structure.
Considerations When Using EIN-Only Business Credit Cards
Personal Liability and Business Credit Cards
While EIN-only business credit cards can help separate personal and business finances, it’s essential to understand that personal liability may still apply in certain situations. For example, if you sign a personal guarantee or use the card for unauthorized purchases, you may be held personally responsible for the debt. Always read the card issuer’s terms and conditions carefully to ensure you understand your obligations.
Building and Maintaining Business Credit
To maximize the benefits of your EIN-only business credit card, use it responsibly and make payments on time. Regularly monitor your business credit reports from agencies like Dun & Bradstreet to ensure accuracy and identify areas for improvement. As your business credit profile grows stronger, you may qualify for better financing options and more favorable terms with suppliers and vendors.
In conclusion, business credit cards that only require an EIN provide a valuable tool for entrepreneurs and established businesses looking to separate personal and business finances, build credit, and manage expenses. By researching the available options, choosing a card that aligns with your company’s needs, and using it responsibly, you can leverage these financial products to support your business’s growth and success.
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