Is it possible to find business credit cards for startups with an EIN only?
The answer is yes. But, there are a few caveats, nuances, and challenges to overcome.
But, if you’re committed to getting a business credit card for your business, it is possible. We’ll explain how below.
This article is part of our free series on US LLCs, including the application process for opening a business bank account for an LLC, which you can access using this link.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can I Apply for Startup Business Credit Cards With an EIN Only?
- Why Get a Business Credit Card as a Startup Business Owner?
- How to Apply for a US Business Credit Card With an EIN Only
- Do You Need an EIN to Get Approved for Business Credit Cards?
- Frequently Asked US Business Credit Card Questions
- Ready to Open Accounts With Banks in the USA?
Can I Apply for Startup Business Credit Cards With an EIN Only?
Yes, you can apply for a startup business credit card with an EIN only. However, the specific terms and requirements that your business will need to meet vary based on your business activities, existing banking relationships, the bank’s acceptance criteria, and whether your business is perceived as a valuable prospective client by the financial institution.
In other words, it is possible to get a business credit card with only an EIN. In fact, it is possible to get a business credit card for a startup business or small business with only an EIN. But, bank selection and navigating account opening requirements, including knowing when a certificate of good standing is required, as a new business owner are key.
With this in mind, we’ll answer a few of the most common questions about business cards for startups below and also walk you through the process of how to get the right business credit card for you and your business.
Why Get a Business Credit Card as a Startup Business Owner?
There are a number of reasons why you should get a business credit card for your business. But, ultimately, the choice to get a business credit card should be evaluated on a case-by-case basis.
In other words, not every business needs a credit card. However, many startups can benefit from building a US credit history, building strong banking relationships, and accessing additional rewards.
Build US Credit History
If you build a US credit history, it will position your business to access a wide range of financing options from US financial institutions. This can include unsecured credit cards, business loans, financing for capital expenditures, and much more.
Unlock Attractive Rewards With US Credit Cards
Unlocking US credit card rewards allows business owners to increase the benefits that they receive from operating their business. This can include rewards points to book travel, spending incentives to increase benefits at certain retail outlets, and even cash back on a wide range of spending.
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How to Apply for a US Business Credit Card With an EIN Only
To apply for a US business credit card with only an EIN you will need to choose the right financial institution, meet the account opening requirements, and be perceived as a valuable banking client. That said, even when these variables are satisfied, you may still be denied.
With this in mind, let’s look at some of the key variables to consider to increase your chances of getting a US business card with only an EIN.
Where Do You Apply for Business Cards?
Most US financial institutions are looking to issue business cards to resident businesses with resident business owners. In other words, they want clients who are US citizens or US residents who have a local business. That said, there are several options available that can be accessed with only an EIN.
However, there are very few financial institutions that meet these criteria and their acceptance policies do change from time to time. So, knowing exactly where (and how) to apply for a credit card with only an EIN can be very challenging.
What Types of Credit Cards Can You Access?
Not surprisingly, the actual business cards that can be accessed with only an EIN are different from the credit cards that can be accessed by individuals with an EIN and a personal tax identification number.
More specifically, EIN-only credit cards tend to be “secured business credit cards” instead of “unsecured business credit cards”. This means that the bank will expect the business (or the business owner) to maintain a deposit against the credit card balance.
How Do You Increase Your Chances of Being Approved For a Credit Card?
There are a number of ways that a business owner can improve their chances of being approved for a business credit card.
One of the ways that they can do this is by demonstrating business revenue. In most cases, this would require a business to be generating at least $1 mm in annual revenue.
A second way that a business owner can improve their chances of being approved for a business card is by making a sizable deposit with the bank. This generally requires the business to deposit between $50,000 and $250,000.
Do You Need an EIN to Apply for Business Credit Cards?
Whether you need an EIN to get approved for business credit cards depends on the credit card issuer and the type of business you’re operating. With this in mind, in most cases, the answer is “yes”.
However, individuals can access business credit cards if they have another form of US tax identification such as an SSN or ITIN. In most cases, obtaining business cards without an EIN requires you to have an existing relationship with a credit card issuer, like Chase or American Express.
Frequently Asked US Business Credit Card Questions
Below are three of the most common questions we receive about how to get a startup business credit card with EIN only. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Long Do You Have to Be in Business to Get a Business Credit Card With EIN-Only?
The length of time it takes to get a business credit card with only an EIN depends on the bank that you are applying to and your ability to meet the requirements. For example, a business can begin operations and immediately get approval for business cards if they can make a qualifying deposit and demonstrate sufficient revenue.
Can You Get Business Credit Cards With Just Your EIN Number?
Yes, you can get a business credit card with just your EIN number. However, very few financial institutions approve applications with only an EIN. In most cases, the available cards are secured credit cards. So, instead of operating like an unsecured credit facility they operate like a charge card or a debit card.
Is It Easier to Qualify For Business Credit Cards?
It is easier to qualify for a business credit card if the applicant does not have a personal credit history. However, if the owner has a personal credit history, it may be easier to qualify as an individual. In short, whether it is easier to qualify as a business or individual depends on the applicant.
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