Can You Get a Business Credit Card Without an EIN?

We’ve written extensively about how to get a business credit card with EIN only. But what if you don’t have an EIN?

You can get a business credit card without an EIN. You can use your Social Security number instead. However, there are benefits to using the former instead of the latter.

Here’s what you need to know about business credit, personal credit, and how focusing solely on business credit can benefit you.

The Minimal Qualifications to Get a Business Credit Card

It’s natural to assume that business credit cards have stringent qualification requirements.

They do. However, you need far less than you might believe to get a business credit card.

Generally speaking, you’re going to need two things: a Social Security number or employer identification number and proof of business.

Obviously, requirements will vary. However, something like a city business license acting as government proof of business could suffice in landing you a business credit card.

Do you have a sole proprietorship or a side hustle? Are you hoping to get a business credit card for your business activity?

If so, you might need even less because of the type of business activity you’re engaged in.

With the above in mind, the minimum qualifications might not be enough to get a business credit card. See what your card issuer needs to increase your chances of getting a business card.

The Benefits of Getting an EIN

There are many benefits to getting an employer identification number. Whether you want a business credit card or a small business loan, you should consider getting an employer ID number to:

• Enable you to engage in essential business activities. An EIN will allow you to hire employees, make changes to your business structure, and more.
• Protect your personal credit score. Your personal credit score can be affected by hard inquiries. Many popular business credit cards will also report to personal credit bureaus. An EIN can protect your personal credit score.
• Establishing an EIN will help you build credit history and your business credit score. With time and strategic credit moves, you can tap into much higher credit limits and loan amounts. This is better than only using your Social Security number for financing.

More than that, there’s nothing that you lose by getting an EIN. Getting an EIN is both fast and easy. You can get one right now by heading over to the IRS website.

Business Credit Benefits

You can use your Social Security number to get your first business credit card.

However, you shouldn’t rely on personal credit for business credit over the long term. Focusing on building business credit can support you in multiple ways.

The first major benefit of business credit is personal credit protection.

As explained above, business credit helps keep your personal and business finances separate. Using your personal credit to consistently apply for business credit puts it at risk. This, in turn, could affect your quality of life.

This is especially true for business credit solutions like a business credit card. If you fall behind on payments or max out your business credit card, your personal credit can be at risk.

But more than that, business credit is always the way to go. Applying for a business credit card and other credit solutions with an EIN is a faster process. It’s easy to qualify with an EIN (if you have a high business credit score and good credit history).

It also gives you the ability to increase the amount you’re able to access over time. Using an SSN is often where one starts because they lack business credit. As you establish and build business credit history, you’ll qualify for better opportunities over time.

Business credit is something you should focus on leveraging right away. It doesn’t matter whether you have stellar personal credit or not.

Business Credit vs Personal Credit

There are a few key differences between business credit and personal credit that will matter when financing your business.

Obvious differences include what each form of credit is tied to. Business credit is tied to your EIN, and personal credit is tied to your SSN. More important distinctions include:

• Personal credit is heavily impacted by credit utilization. Meanwhile, the goal of business credit solutions is to use the full credit line available. A business credit card that reports to personal credit could hurt your score, but not one that reports to business credit.
• It can be difficult to get trade credit with just your SSN. You often need an EIN for the application. Trade credit is instrumental in building business credit overall.
• Personal credit solutions come with much lower limits. Business credit solutions are designed to help you fund your business. It’s better to avoid using personal credit cards or personal loans to manage business expenses.

Using business credit for business financing is the best course of action. That being said, can you get a business credit card with just an EIN?

Yes - but you have to know which ones to apply for. And many card companies will ask for a Social Security number just to comply with bank laws, but won’t check your credit with it.

Almost every traditional business credit card issuer will ask for a personal credit check. For example, you won’t likely get a Chase business credit card with EIN only.

However, you can get a business credit card with just an EIN by signing up for a corporate card, fleet cards, or even the FairFigure Capital Card. There are plenty of startup business credit cards with no credit EIN only.

Can You Avoid a Personal Guarantee with Business Credit Cards?

Avoiding using your personal credit for a business credit card might not be your only concern. Many small business owners are concerned about personal guarantees as well.

A personal guarantee puts your personal assets at risk should you default on your loans or be unable to pay the money you’ve borrowed using your business credit card.

But like your SSN, you can get a card without a personal guarantee.

Nearly every traditional card issuer will ask for a PG. If you go to financial institutions like banks, you’re going to probably have to sign a PG with this type of card issuer.

Continuing with the above advice, seek out business credit card alternatives. The same options that let you sign up for EIN only typically don’t require a PG. These include corporate card solutions, fleet cards, and solutions like the FairFigure Card.

Some corporate card examples include the Brex card, the Ramp Visa Corporate Card, and the BILL Divvy Card. Corporate business credit cards are good for most.

If you have a fleet and you want rewards that corporate credit cards don’t offer, consider fleet cards. Some fleet cards worth considering include the Coast fuel card and the AtoB card.

How Getting a Business Credit Card for Your LLC Works

Getting a business credit card for your LLC is simple. Just:

1. Do Your Research: Check to see which cards appeal most to you. Consider variable APR, rewards structures, and bonuses or promotions available at account opening. The best business credit cards will be tailored to your needs.
2. Check Qualification Requirements: You should be able to find qualification requirements for each business credit card with a bit of research. This will make it easier to complete the next step.
3. Gather the Necessary Information: You’ll likely need identification information, business information, a business bank account, and so on. Make sure to address any missing elements before filling out an application.
4. Apply for Your Chosen Card: Once you’re sure you have everything, it’s just a matter of applying. The stronger your revenue, credit score, and other factors are, the greater the likelihood that you’ll be approved.

Frequently Asked Questions

Can I open a business credit card without a business account?

Yes, you can! Some people who are sole proprietors or those who have a side hustle might not have a business account. However, they can still get a business credit card.

If this applies to you, you can rest easy knowing you can still get a business credit card.

Can I get a business credit card without a business?

It’s highly unlikely that you can get a business credit card without a business.

If you have a side hustle or home-based business, you can.

If you’re looking to get a business credit card for personal use without a business, you can’t.

Red flags will be raised if you’re trying to get a business credit card without a business or proof of business activity. Many cards also prevent regular business credit card use for everyday personal expenses. You can only use it for your business expense needs.

Stick with a personal credit card for personal use and business credit cards for business use.

Can I get a business credit card with no revenue?

You might think that a lack of revenue disqualifies you from getting approved for a business credit card.

However, you can qualify for a business credit card with no revenue.

The problem with having little revenue is that your credit limit won’t be very high at first. The more revenue you have, the higher your credit limit will be.

What's the easiest business credit card to get approved for?

The easiest business credit card to get approved for is the FairFigure Capital Card.

The FairFigure Capital Card is an EIN-only business card. It has no PG, no personal credit check, and no paperwork to fill out.

It offers a wide range of benefits for the small business owner, such as:

• Revenue-based financing. This helps your credit limit rise with your business success and boosts cash flow.
• Easy qualification requirements, unlike many small business credit cards. It becomes available once you generate $2,500 monthly and have at least three months in business.
• Flexible payback terms with four to eight-week terms available.
• Business credit building support. They report to Equifax, Experian, Creditsafe, and the SBFE. This helps you build your business credit score with each business credit bureau and positive credit history fast.
• No deposit required to get your card.
• Cash back on every eligible purchase.

Do you want a business credit card without the headache? Register for FairFigure today!