3 Common Myths About Business Credit Cards

To someone starting a business or looking to expand their existing business the thought of getting a business credit card may seem like a project that they don’t feel would be worth tackling.

In this article I will dispel three of the common myths of business credit cards.

Myth #1

Credit cards for business are difficult to get.

I know that this is a myth due to my own experience.  At the time I had a credit score of less than 700 and was approved for a Capital One Spark business credit card.  The starting limit was $2000 which was not bad considering my credit was not that great.  After 3 months they increased the limit another $500.

Myth #2

The Business is too new to qualify for a credit card.

In my case I did not have any other business credit so when I applied for the business credit card they had me also apply with my personal credit.  If your personal credit is good enough (in my case mid 600) then you should be approved for the business card.  In short it doesn’t matter how new your business is as long as you apply personally for the card using your SSN.

Myth #3

Your Business has to have its own tax ID to qualify for a Business Credit Card.

You can apply for a business credit card regardless of the type of business you own.  It could be a corporation with its own tax ID or it could be as simple as a sole proprietor with no tax ID.  In the situation where you don’t have a tax ID for the business you will just use your personal Social Security Number for the credit card application.  When my wife applied for her Spark Capital One Business Credit Card she just used her Social Security Number since she doesn’t have a separate tax ID for her business.

Good Luck applying for your business credit card.

Author Bio

JC McClain has authored two books on credit cards available at the Amazon Kindle library, Credit Cards for Bad Credit 2013 and Best Credit Card Rewards 2013.  McClain has also appeared on the nationally syndicated radio financial fitness show sharing his expertise in credit repair.  He is also the credit expert for Cloud Technology Systems, Inc.

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