How to Get a Business Credit Card – The Ultimate Guide

December 11, 2019 By Brad Smith

Congratulations! You’ve successfully launched (or are soon to be launching) a brand new business. This is no small feat, so if you haven’t congratulated yourself yet, do it. There are, however, a few more logistics to consider before you officially can officially have your business running successfully. One of the most important things to do is to get a business credit card.

There are many perks to having a business credit card, but if you are a small business owner, having a business credit card is not optional. If you’re a small business owner, the lines can be exceptionally blurry between business and personal expenses. By taking the time to get a business credit card, you can avoid doing financial gymnastics come tax season when you’re trying to comb through your expenses for the year.

Having a business credit card allows you to have a totally separate account for your business needs.

So, how do you go about obtaining one of these business credit cards? Glad you asked.

Welcome to the definitive, ultimate guide on how to get a business credit card. This guide will teach you how to apply for a business credit card, the credit cards are the best for small business owners, and how to get approved.

Ready? Let’s begin.

Applying for a Business Credit Card

Now for some fun, let’s talk about how to go about applying for a business credit card. You’ve likely already applied for a personal credit card at some point, but applying for a business credit card is a little bit different.

In order to apply for a business credit card, you’ll need a few things first:

The official legal name of your business
- This is the name that will appear on your credit card once you’re approved – if you’ve registered your company with the government, that’s the name that you’ll use as the official legal name of your business.
- If your business if a sole proprietor or freelance business, it will most likely be your legal name.

Your Business’s Tax Identification Number
- If you are a business registered with the government, you’ll use your federally given tax identification number.
- If you’re a freelancer or sole proprietor, you’ll simply use your Social Security Number as your Tax Identification Number.

Your Business Type
- If you are an LLC or registered with the government, you would mark that down as your business type.
- If you are a freelancer you would simply call yourself a “sole proprietor”
  - Pro-Tip: As of May 2018, there were new regulations implemented that if anyone owns more than 25% of your business, they must be disclosed for informational purposes.

Your Business’ Industry
- When you apply for your business credit card, there will be a list to select from with different industries. Select the one that fits your business and brand best – even if it isn’t an exact match.

What is Your Role in the Business?
- As you apply for a business credit card, you’ll need to disclose what your relationship is to the business. Are you the owner? CEO? General Manager?

Logistics of the Business
- You’ll need to disclose an address for your business – if you’re working from home, it will be your home address. If you are renting a space, it will be the address of the office building.
- You’ll also need to disclose how long you’ve been in business. The longevity of your business doesn’t necessarily affect your likelihood of obtaining a business credit card, but it is useful information when it comes to your business credit limit and APR.
- How many employees work for your business? Whether it’s just you, or if your business has 1500 employees, it’s important that you accurately assess how many people work for your business.
- What is your annual business revenue? Even if you’re not making money yet, it’s important to be honest when you answer this question.
- How much money does your business spend per month? This is in reference to your company and business expenses – not personal. It can be an estimation, but try to be realistic when it comes to determining approximately how much you’ll be charging on the credit card monthly.

Other Information Credit Card Companies Might Ask For

Once you’ve filled out all of your business information, the credit card company might need a bit more information on you, the business owner. Information they might ask for includes your:

Name
General Contact Information: Address/Phone Number/Email
Social Security Number
Birthday
Annual Household Income

Getting Approved

Similar to personal credit cards, once you’ve successfully applied for a business credit card, you have to wait to be approved. Now, here’s the fun part: if you are a brand new business with no credit, your business credit card approval will be dependent on what your personal credit score is.

If you are already an established business with its own line of credit, it will be a little bit easier since the credit card companies will be able to base their decision on both the business (and personal) credit score. So make sure you follow our guide to build up your business credit score here.

So, what if your personal credit is not great? There are still a few card options out there that will offer you a credit card even if you have a lower credit score. For example, Capital One often offers credit cards to businesses with owners who have lower credit scores. An alternate option to the Capital One card would be to use a secured credit card. A secured credit card basically means that you pay an upfront deposit to offset the companies potential loss once you rack up a balance on your credit card. These cards are great because they do not check your credit score and can also help you to build credit over time.

Which Card Should You Choose?

Now that you know how to go about getting a business credit card, how do you choose which business credit card is the right one for your business? When considering your credit card options, there are a few key things to keep in mind:

APR: What is the Annual Percentage Rate for the card? This is the amount of interest that you will pay in a year if there is a balance on your credit card. There are many companies that offer 0% APR for the first year, but it is still important to see what the APR will be in the years to come. The Blue Business Cash card from American Express is an excellent choice with 0% APR for the first year.

Rewards: Most credit cards come with rewards. The most important thing for you to consider is which rewards are the most beneficial for your business. Rewards options range from points, miles, and cash back. Depending on how often you travel or shop at certain stores, different rewards options may or may not be right for you.

Foreign Transaction Fee: This is really only important if you are going to be traveling internationally with your business. Many credit card companies charge interest on purchases made while abroad. If you are going to be traveling internationally often, we recommend investigating which companies offer the lowest foreign transaction fee, or which companies allow you to make foreign purchases with no additional fee.

Ultimately, finding the right card for your business is something that takes time and research. Every business is different and will have different priorities when it comes to getting a business credit card. If you’re finding it difficult to choose between cards, check out this comprehensive list of credit cards for businesses.

Tips From the Pros

Even if you’ve chosen your credit card, applied, and been approved, you might still have a few lingering questions about having a business credit card. A few common questions that first-time business credit card holders want to know are:

If I have a business credit card and am a sole proprietor, can I use this card for personal expenses too?
- As we mentioned at the beginning of this guide, one of the perks of having a business credit card is that it helps you to keep you personal and business expenses separate from one another. Therefore, it is advisable to keep your business card and personal expenses separate and not use your business credit card on personal expenses.

My business isn’t making money yet, can I still apply for a business credit card?
- Absolutely! If you have the intention of making a profit from your business and have a plan in place, you can still apply for a credit card. Do keep in mind, however, that you will have to pay off the credit card one way or another, regardless of how your business is doing.

Do I need to have a business checking account to apply for a business credit card?
- If you are working as an LLC, partnership, or corporation it is recommended that you keep a separate checking account for your business.

If my personal credit can affect my business credit card, can my business credit card affect my personal credit?
- Generally speaking, no. More often than not, business credit cards do not report to the personal credit bureaus. However, if you are continually late on making payments, then your personal credit could suffer.

Other Perks of Having a Business Credit Card

Now that you have chosen, applied for your business credit card, and been approved for your card, it’s time to start enjoying all of the perks of having a business credit card. Not only is having a business credit card incredibly helpful when it comes to establishing the financial viability of your company but as we’ve mentioned a few times, the primary perk to having a business credit card is the ability to keep your personal expenses and your business expenses separate. This will be immensely helpful when it comes to doing your taxes (both professionally and personally) and will also help you to keep better track of your money and spending altogether.

Keeping your personal and business expenses separate can also be helpful were your company to ever run into any legal trouble. Having your finances separate creates a layer of space between you and your company.

Another great perk to having a business credit card is that you’ll be able to begin building your business credit. This can help to establish your ability to take out a loan, among other things, as a business.

Having a business credit card is also incredibly helpful when it comes to having working capital. This can take your business to another level when it comes to hiring graphic designers for marketing and purchasing inventory, for example.

And finally, just like with personal credit cards, business credit cards come with many great perks for cardholders like points, miles, and cash back.

All in all, having a business credit card can not only help protect you and your business legally, but it can also help your business to grow with working capital and an established credit score. Having a business credit card helps your business to go from a small owned business to a business that other business (and potential customers) take more seriously.

If you’re still on the fence about whether or not you should get a business credit card, we humbly believe that a business credit card can provide amazing benefits and should be at the top of your priority list when it comes to finalizing your business accounts and setting your business up for success.

Have you recently applied for a business credit card? Let us know how it was beneficial to your business! We can’t wait to hear your story.

How to Convert Credit Cards into Cash

September 10, 2019 By Brad Smith

Disclaimer: Consult a tax qualified professional, attorney and credit card company terms of service before proceeding.

Liquidating Credit Cards to Fund Your Business Ideas

Does getting $10,000 cash at zero-percent interest sound exciting to you?

What if there was a way of liquidating credit cards for this kind of quick cash with 0% APR? One that you could take advantage of over and over again?

Would you do it?

Why Learning How to Turn Credit into Cash Is so Crucial

When you start a business or invest in real estate, you will need a loan for your startup costs. However, you will have to supply a bank with a verifiable source of income and your tax returns. Or, you can take out a second mortgage or get a car loan. No one wants to do that.

Let’s face it. What you really need is unsecured credit. And the easiest way to get that is by liquidating credit cards.

What you are about to learn is proven to work!

However, there are a few challenges you will face in the process of turning credit card into cash. First, you will need to do some research to find the right credit cards to use. Then you will need to keep track of your financial transactions in one place to manage them.

That’s it! Now you’re closer than ever to learning how to turn credit into cash.

Coming up: How to Get a Cash Refund From Your Credit Card Company!

So keep reading. Our strategy for liquidating credit cards covers everything. We will show you how to turn credit into cash – minus the high interest and transaction fees!

You Don’t Necessarily Have to Get a Cash Advance to Get Cash

Most people know what a cash advance is. You go to the ATM or the bank and get money advanced on a credit card. There is a substantial fee for the transaction and then the interest rate is usually about 25% APR.

This is not for you! And it’s the first mistake people make when they try to turn credit card into cash.

They take out a high-interest loan on one credit card and max it out. Then the high-interest rate means they never pay back the principal on the loan. All they have is bad credit card debt.

The smart investor, though, uses a balance transfer strategy to get the cash advance and then pays it off right away. How do they do this?

Here are 3 easy steps for liquidating credit cards:

Step 1: Find a credit card that will let you take the highest cash advance possible. That’s the card to get first.
Step 2: Find three or four other credit cards that will let you transfer a balance for 0% APR for twelve months. These are usually offers you can find easily once you have signed up for your first credit card. (If you can get one credit card, banks will be eager to give you more offers at a better rate. This is where the 0% APR offers come in.)
Step 3. Take as large a cash advance as the first credit card will allow. Then immediately transfer the balance to the other cards at 0% APR.

Way to go! You now have a 0% APR loan you can pay off in easy installments within the next year!

You will also have a zero balance on the first card where you took the cash advance. Sure, you may have had to pay the initial cash advance fee, depending on the card. But there is nowhere you are going to get a deal like this for interest-free cash! So your initial cost for a cash loan is absolutely the lowest you can get in the banking industry!

Now you can invest the cash in your business and pay it back interest-free for a year!

Once you do, you will have the kind of credit you need to get even more credit. That is if you still need it. Since your first credit card has a zero balance, you can borrow on it again whenever you want!

Coming up: How to get your roommates to make your credit card payments!

Get Instant Cash from a Balance Transfer and Refund

If you already have a credit card with a low balance, there is another way to get cash from it. Let’s say you have a balance transfer offer of 0% from one of your new cards. You can transfer the maximum allowed from the 0% interest card to the card with the low balance.

For example, if the low balance on your existing card is $300, ask to transfer $3,000 to it. Then you will have a balance of negative $2,700 on your original card. Did you know that you can call the credit card company and they will issue you an overpayment check?

This is a check or cash money that can go right into your bank account.

So you have another way to get a $3,000 cash loan at 0% APR! Or you can also use this negative balance to pay off any bills that accept credit cards. You will still be paying 0% interest – because you are not actually charging anything.

Note: This only works on an existing credit card with a balance. Don’t balance transfer to a credit card with a zero balance. The bank will not accept the transfer on a zero balance credit card. (All you need is a very minor balance for this to work.)

Use Convenience Checks to Turn Credit Card into Cash with Lower Fees

Convenience checks are the checks that come with your credit card statement in the mail. These are blank checks you can write out to anyone. The same fees and interest apply, though, as using your credit card for a cash advance. So if you write the check out to yourself and put it in your bank, it works like a cash advance.

However, this is not always true.

To get you started using convenience checks, a bank may send them out with a special offer. Just like they sent you a 0% balance transfer offer. This will be something like no cash advance fee or 0% APR for 6 months. If you use the checks by a certain date.

Always be on the lookout for special offers – and liquidating credit cards for cash will work faster.

Coming up: Become a merchant that accepts cards and really learn how to turn credit into cash!

Get More Cash With Companies That Accept Credit Cards and Mail out a Check

There are also companies that will charge your credit card and send out a check on your behalf. Of course, since even utility companies take credit cards, this mainly applies for rent. Most landlords want cash, not credit.

These companies, like Plastiq, RadPad, RentMoola, Urbanr, and Venmo are all online. They charge 1.5% to 2.5% of each transaction amount. They charge your rent to your credit card like a purchase. Then they send a check to your landlord.

Which means that this charge counts as a straight purchase on your credit card, with no cash advance fees. Which also means that if you have roommates, you can charge your entire rent.

Then take their cash and put it in your bank account.

These companies will also take multiple cards for one rent check, which is really flexible. This is why it is important to have three or four cards to turn credit cards into cash.

Always keep your options open when you are using a balance transfer strategy to invest in your future.

A Merchant Account Will Turn Credit Card into Cash

A merchant account is a business account that will also help with liquidating credit cards. This is because when you open a merchant account, you can take credit card payments from other people. This is money that goes right into your bank account as cash.

You can then use the cash to pay off a balance for when you take a cash advance of your own.

So when can you take cash from other people as payments?

If you have roommates, you can take their share of the rent on their credit cards. Or if anyone owes you money, they can pay you by using their credit card. If you are starting a business you can take credit cards as payment.

It all goes into your bank account as cash, minus the processing fee.

All you need is a card reader and a credit card processor. The card reader goes on your cell phone so you can take payments anywhere. The money will be in your account within a few days! Some of the top credit card processors are Square, Payment Cloud, Leaders Merchant Services, and Flagship.

Many of these processors do not run a credit check or require you to have a business checking account. Some specialize in high-risk businesses or people with bad credit.

This is another way to turn credit card into cash you may not even have considered.

Final Thoughts on How to Turn Credit into Cash:

As you can see, there are many reasons why liquidating credit cards into cash works:

Easy, monthly payments all applied to your principal balance
Unsecured credit that without using your assets as collateral
Minimal credit and background checks
Can be used over and over
Instant access to cash when you need it
Will improve your credit score

Learning how to turn credit into cash and liquidating credit cards is an exciting opportunity! But what do you think? Is this something you think you’re ready for? If so, leave your comments below!